Digital Transformation in Islamic Banking Services as a Support for Green Banking Practices

Abstract

Digital transformation has become a key factor in  improving the efficiency and quality of Islamic  banking services, while supporting green banking  practices that are oriented towards environmental  sustainability. This research aims to analyze the  role of digitalization in Islamic banking services in  supporting the implementation of green banking.  The method used in this study is a qualitative  approach with literature study and secondary data  analysis from various reliable sources. The results  of the study show that digitalization in Islamic  banking, such as the use of mobile banking,  paperless transactions, and the implementation of  artificial intelligence in risk analysis, contributes  significantly to reducing natural resource  consumption and increasing operational  efficiency. In addition, sharia-based financial  technology innovations also encourage  transparency and public trust in environmentally  friendly banking products. The study concludes  that digital transformation not only increases the  competitiveness of Islamic banking in the  industrial era 4.0, but also strengthens the  commitment to the principles of sustainability and  Islamic business ethics.