ABSTRACT
This chapter provides an increasing role for financial technology in enhancing the services of Islamic financial institutions and bringing investors and clients closer to one another through innovative platforms, particularly through crowdfunding. There may be a need for fintech-specific Shari‘ah and Shari‘ah-governance standards by the Islamic finance industry’s standard-setting bodies such as Accounting and Auditing Organisation for Islamic Financial Institutions and Islamic Financial Services Board. Shariah scholars, as well as the industry’s standard-setting bodies and freelancers, are expected to work towards surmounting the challenges of new developments in fintech solutions in Islamic finance. Islamic financial institutions can benefit from fintech by developing products that can be easily accessed by everyone in any part of the globe which should also be cost effective, for example, mobicash in Pakistan, M-pesa in Kenya and “TransferWise” in the United Kingdom. Tawarruq or commodity murabahah brokers’ platforms are a good example of fintech exclusively benefiting Islamic financial institutions.
