The Emergence of Islamic Fintech and Its Applications

Islamic Fintech is a disruptive force in the financial sector, promising increased financial inclusion, economic development, and a plethora of efficient, transparent, Shariah-compliant financial solutions due to its integration of technology with Islam's profound ethical principles. This paper...

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Bibliographic Details
Published in:International Journal of Islamic Economics and Finance Studies 2023-09, Vol.9 (2), p.212
Main Author: KILIÇ, Gökmen
Format: Article
Language:English
Subjects:
Bank technology
Financial services
Innovations
International finance
Islamic financing
Islamic law
Islamic life & ethics
Regulation of financial institutions
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Summary:Islamic Fintech is a disruptive force in the financial sector, promising increased financial inclusion, economic development, and a plethora of efficient, transparent, Shariah-compliant financial solutions due to its integration of technology with Islam's profound ethical principles. This paper examines "Islamic Fintech," a swiftly expanding component of the global financial ecosystem that combines financial technology with Shariah principles derived from the Holy Qur'an and the Sunnah. This burgeoning industry seeks to align finance with Islamic ethical and moral codes, with an emphasis on the prohibition of usury, speculation, and investments in immoral goods. This paper also examines the origins, applications, and regulatory governance of Islamic Fintech. It highlights the breadth of its innovative applications, such as Shariah-compliant digital banking, crowdfunding, and P2P lending platforms, as well as the incorporation of cutting-edge technology such as AI and machine learning for risk assessment and investment strategies, blockchain technology for Islamic cryptocurrencies, and Insurtech for the streamlined distribution of Islamic insurance products. In addition, the paper elaborates on the necessity of regulatory frameworks and standardisation for the growth and sustainability of Islamic Fintech, highlighting the interoperability challenges.
ISSN:2149-8393
2149-8407
DOI:10.54427/ijisef.1328087