Maqāṣid al-Sharīʿah and the Online Banking System: Implications for Service Delivery
One of the Sharīʿah’s requirements in conducting transactions is realising the Maqāṣid al-Sharīʿah. The Modern online banking system is very common to everyone, so it is considered as al-ʿUrf or al-ʿādah (common practice or custom) under the Sharīʿah. However, its practice is surrounded with security concerns, ease of use, and trust and cost implications that need observance of some Sharīʿah rulings. This qualitative analytic study uses the framework for the Maqāṣid al-Sharīʿah to explicate the ideal practice of online banking in service delivery to realize the Maqāṣid al-Sharīʿah. While Islam places more attention on the essential needs, online banking should as well be intended to provide essential services to customers and remove hardship in financial transactions. Banks should hence desist from causing any harm through the charging of hidden fees, causing more confusion to their clients, and even devising deceptive means that lead to the charging of ribā. Instead, banks should use online services to introduce means that promote the realization of the Maqāṣid al-Sharīʿah. This paper stresses the importance of financial technology in realising the Maqāṣid al-Sharīʿah.
Keywords: Online Banking, Maqāṣid al-Sharīʿah, Maṣlaḥah, Islamic Banking, Banking Services
Abozaid, A., & Dusuki, A. W. 2007. The Challenges of Realizing Maqāṣid al-Sharῑʻah in Islami Finance. IIUM International Conference on Islamic Banking and Finance: “Research and Development: The Bridge between Ideals and Realities,” (April), 1–27.
Ahmed, H. 2011. Maqāṣid Al-Sharῑʻah and Islamic Financial Products: A Framework for Assessment. ISRA International Journal of Islamic Finance, 3(1), 149–160. http://doi.org/10.1142/9789812569394_0005
Al-Bayūmῑ, M. S. 2002. Maqāṣid al-Sharῑʻah al-Islāmiyya. Darul Hijrah
Ali, Y. 1983. The Holy Qur’an; Translation and Commentary. USA: Amana Corp
Alotaibi, M., & Asutay, M. 2015. Islamic Banking and Islamic E-Commerce: Principles and Realities. International Journal of Economics, Commerce and Management, III(4), 1–14.
Al-Shātibῑ, A. 2003. Al-Muwāfaqāt fi Uṣūl al-Sharῑʻah. Beirut: al-Maktabatul Asriyya,
Al-Smadi, M. O. 2012. Factors Affecting Adoption of Electronic Banking : An Analysis of the Perspectives of Banks ’ Customers. International Journal of Business and Social Science, 67(4), 294–309.
Amin, H. 2008. E-Business from Islamic Perspectives: Prospects and Challenges. Journal of Internet Banking and Commerce, 13(3).
Amin, H., Rahman, A. R. A., Jr, S. L. S., & Hwa, A. M. C. 2011. Determinants of customers’ intention to use Islamic personal financing: The case of Malaysian Islamic banks. Journal of Islamic Accounting and Business Research, 2(1), 22–42.
Attia, G. 2007. Towards the Realization of the Higher Intents of Islamic Law (Maqāṣid al-Sharῑʻah); A Functional Approach. London: International Institute of Islamic Thought.
Dalhatu, B. U., Abdullah, A. B., Ibrahim, M. Y., & Abideen, A. 2014. Nigerian retail customers adoption of online banking in an Islamic bank. Global Business and Management Research: An International Journal, 6 (3), 237–245.
Dusuki, A. W., & Bouheraoua, S. 2011. The framework of Maqāsid al-Sharīʿah and its implication for Islamic finance. Islamic and Civilisational Renewal, 2 (2).
Goi, C. L. 2015. Online banking in Malaysia: Opportunity and Challenges. The Journal of Internet Banking and Commerce (3).
Ibn Ᾱshūr, 1366 AH. Maqāṣid Al-Sharῑʻah. Tunisia: Maktabat al-Istiqāmah.
Ibnul Qayyim, M A 2011. I’ilam al-Muwaqqi’in an Rabbil Ᾱlamῑn. Beirut: Al-Maktabatul Asriyya.
Kahf, M. 2006. Maqāṣid al Shari’ah in the prohibition of riba and their implications for modern Islamic finance. In IIUM International Conference on Maqāṣid al Shari’ah (pp. 184–203).
Kamali, M. H. 2009. Principles of Islamic Jurisprudence. Ilimiah Publishers, 2nd Revised Edition
Law, R. 2008. Tourism Management Reviews. International Centre for Tourism & Hospitality Research, (852).
Rosland, A., Borhan, J. T., & Romli, N. 2012. Contract (Akad) in Online Banking. International Journal of Computer Applications, 60(18), 37–40.
Sharif, M B and Sabri, H 2008. Maqāṣid al-Sharῑʻah al-Islāmiyya wa Tatbiqātuhā fil Mu’āmalāt al-Māliyya. Malaysia: University Sains Islam Malaysia.
Yunus, M K 2007. Mabāhith fi Uṣūl al-Fiqh. Darul Safwah.
Copyright (c) 2017 IIUM Press
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.