SHARIA-BASED FINANCIAL ACCOUNTABILITY IN THE ERA OF GENERATION Z: CHALLENGES AND OPPORTUNITIES AMID DIGITAL TRANSFORMATION

Abstract

Global financial ecosystems have changed due to the quick development of digital technology, which presents both opportunities and difficulties for accountability in Sharia-compliant financial institutions. In the context of Generation Z, a generation distinguished by strong ethical and social ideals and digital proficiency, this, study examines the idea of Sharia-based financial accountability. While underlining important issues including technology adaption, Sharia compliance, and generational expectations, it looks at how digital transformation affects financial reporting, organizational transparency, and stakeholder confidence. This study highlights the increasing importance of digital tools—like digital banks, Sharia fintech platforms, and automated reporting systems—in improving compliance, transparency, and ethical financial behavior among Generation Z professionals and consumers. It does this by drawing on recent empirical research and theoretical developments. The results also highlight enduring obstacles, such as the need to close gaps in Sharia financial literacy, guarantee strong regulatory and governance frameworks, and strike a balance between high-tech innovation and adherence to fundamental Islamic principles. The study comes to the conclusion that, if financial institutions incorporate education, governance norms, and user-centric digital design into their operational frameworks, carefully utilizing digital transformation can reinforce Sharia-based accountability. There includes discussion of the practical ramifications for financial managers, educators, and legislators.