Fintech and Islamic finance
DOI link for Fintech and Islamic finance
Fintech and Islamic finance book
This chapter aims to elaborate on the Shariah parameters for fintech solutions in Islamic finance. Fintech is a new way of finance by providing innovative products that would improve existing practices and facilitate consumers’ experiences in transactions in an efficient and effective way. Fintech offers product innovation by structuring financial products that are new or significantly improved and enhanced with respect to their characteristics or intended uses. Innovation through fintech should be explored to emphasis the value proposition of Islamic finance such as how to use technology to ensure minimal risk in the musharakah and mudarabah models of financing or how istisna’a and salam can be operated and optimised using fintech. Fintech solutions should be guided by the broad principles of Shari‘ah by avoiding the prohibited elements in transactions, such as interest, gambling, uncertainty, harms, cheating. Fintech application in Islamic finance is expected to bring new hope to marginalised segment of society to nurture, empower and grow together.