Fintech and Islamic Finance: A Critical Appraisal

TitleFintech and Islamic Finance: A Critical Appraisal
Publication TypeConference Proceedings
Year of Publication2020
Date Published07/2020
Conference Name3RD INTERNATIONAL SCIENTIFIC CONFERENCE ON DIGITAL ECONOMY DIEC 2020
Pagination149-157
Publication LanguageEnglish
AuthorsSmolo, E, Šeho, M, Čavalić, A
PublisherInternacionalna poslovno - informaciona akademija
Place PublishedTuzla
ISSN Number2566 - 4514 (Print) 2566 - 4522 (Online)
Keywordsfintech
Abstract

Although the term “fintech” was coined by Bettinger in 1972, it was only in 2014 that the idea gained a momentum and attracted the attention of the masses. Financial technology or fintech represents one of the latest developments and the hottest subject being discussed within the financial industry. The Islamic fintech is at its infancy with a very small size and a limited number of platforms. The paper aims to analyze the fintech principles from the Shari’ah perspective and how this evolution will affect the Islamic finance industry (IFI). Although there are some Shari’ah issues in relation to certain aspects of the fintech industry, there is nothing in particular that makes this industry, in principles, Shari’ah non-compliant. Accordingly, this study deals with the overall idea of fintech and its application to Islamic finance. It will apply qualitative method to review and analyze Shari’ah and other issues related to fintech and briefly discuss its potential for further development of IFI. Certainly, the development of fintech will have a great impact on both conventional and the IFI and the response of the IFI to this development will determine its future place in the global financial arena. Hence, there is a need for the IFI to embrace this fintech revolution even further and stronger, thus avoiding not to be left behind.

Refereed DesignationRefereed