Challenges and Strengthening of the Islamic Banking Security System in the Digital Age

Aji Sofyan Aji Setiono; Fauzan Arya Pratama; Honggo Akbar Prayogo; Muhammad Na'ufaldi Budhiyanto; Affam Aditya Dwi Putra Kusuma

Authors

Aji Sofyan Aji Setiono Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Fauzan Arya Pratama Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Honggo Akbar Prayogo Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Muhammad Na'ufaldi Budhiyanto Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Affam Aditya Dwi Putra Kusuma Faculty of Law and Political Science, Muhammadiyah University Surakarta Author

Keywords:

Banking Sharia, Transformation Digital, Cybersecurity, Magasid al-syari'ah, Risk Management

Abstract

The development of digital technology in the era of the Fourth Industrial Revolution has changed the landscape of the global financial industry, including the Islamic banking sector. Digitalization is no longer an option, but a strategic necessity to maintain competitiveness, expand service coverage, and improve operational efficiency. In Indonesia, Islamic banking has shown positive growth in line with increasing public awareness of Islamic-based finance and the wider penetration of digital technology. This article discusses the dynamics of digital transformation in Islamic banking, focusing on challenges and strategies for strengthening digital security systems. The research uses a qualitative-descriptive approach, utilizing secondary data from academic literature, financial institution reports, and relevant regulations. The results of the study show that although the adoption of technologies such as mobile banking, big data, artificial intelligence (AI), and blockchain has driven significant growth, Islamic banking still faces serious challenges. These challenges include cybersecurity risks, infrastructure limitations, a lack of competent human resources, low digital literacy, and compliance obligations with regulations such as the Personal Data Protection Act.In response to these challenges, strengthening the digital security system has become a strategic element that is not only technical in nature but also reflects an ethical and spiritual commitment to protecting customers' assets (ḥifẓ al-māl) in accordance

with maqāṣid al-syarī‘ah. The recommended strategies include the application of the latest security technology, increasing human resource capacity, and developing cyber risk management policies based on sharia principles. With a holistic approach, digital transformation is expected to strengthen the competitiveness and sustainability of Islamic banking in the digital era.

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