Beyond Digital Banking: Integration of Green Banking and Maqashid Sharia in Islamic Banking Services

Abstract

Green banking is the process of operating banking and using technology or physical banking infrastructure efficiently and effectively. As much as possible, green banking is expected to provide zero effect or minimal negative impact on the environment and society. The research aims to ensure that the digital services realized in the concept of green banking align with the values of maqashid sharia. The research method uses a case study approach, as it aims to comprehensively understand the phenomenon based on experience, perception, and real practices. The results of this study indicate that the use of digital Islamic networking services in Indonesian Islamic banks thru digital service applications enhances the implementation of green banking in Indonesian Islamic Banks. This is because digitalization provides practical and efficient services, which contribute to reducing carbon emissions and protecting the environment from exhaust pollution from motor vehicles. From the perspective of maqashid sharia, digital services as a form of green banking align with the values contained within, namely, maslahat, amar ma’ruf nahi mungkar, justice, trust, and responsibility. Thus, this service represents the objectives of maqashid sharia itself, as it contributes to the protection of religion, life, intellect, lineage, and property. Thus, this research has a policy contribution in the form of recommendations for Regulators and BSI to formulate digital transformation in accordance with the values of sustainable development (green banking) and the principles of maqashid sharia.

Keywords

• Digital Banking
• Green banking
• Islamic Banking
• Maqashid Sharia