Financial Technology in Islamic View
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Published:
Oct 10, 2020
Keywords:
Islamic Finance, Fintech, E-wallet, Micro Finance, Crowdfunding
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Abstract
The development of financial technology made many changes, including Islamic finance. This paper reviews how fintech is changing the shape of the Islamic finance industry through mobile payments, microfinance, peer-to-peer lending, and crowdfunding. The use of e-wallet is as long as it does not violate the provisions. Microfinance cannot be separated from Islamic finance if we want to increase social welfare through inclusive growth and encourage the distribution of wealth. Islamic microfinance structure can deal with the problem of poverty. The appropriate and fair crowdfunding model for small businesses is profit sharing or using mudaraba contracts. In Islamic finance, the role of bitcoin is controversial.
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Copyright (c) 2020 Taofik Hidajat
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Bakar, N. A. and Rosbi, S. (2018) ‘Robust framework diagnostics of Blockchain for bitcoin transaction system: A technical analysis from Islamic Financial Technology (i-FinTech) perspective’, International Journal of Business and Management, 2(3), pp. 22–29.
Bakar, N. A., Rosbi, S. and Uzaki, K. (2020) ‘E-Wallet Transactional Framework for Digital Economy: A Perspective from Islamic Financial Engineering’, International Journal of Management Science and Business Administration, 6(3), pp. 50–57.
Bank for International Settlements (2018) Sound Practices: Implications of fintech developments for banks and bank supervisors.
Beaulieu, T., Sarker, Suprateek and Sarker, Saonee (2015) ‘A Conceptual Framework for Understanding Crowdfunding.’, CAIS, 37, p. 1.
Cheah, E.-T. and Fry, J. (2015) ‘Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin’, Economics Letters. North-Holland, 130, pp. 32–36. doi: 10.1016/J.ECONLET.2015.02.029.
Estellés-Arolas, E. and González-Ladrón-De-Guevara, F. (2012) ‘Towards an integrated crowdsourcing definition’, Journal of Information science. Sage Publications Sage UK: London, England, 38(2), pp. 189–200.
Evans, C. (2015) ‘Bitcoin in Islamic banking and finance’, Journal of Islamic Banking and Finance, 3(1), pp. 1–11.
Fan, Y. et al. (2019) ‘Security design, incentives, and Islamic microfinance: Cross country evidence’, Journal of International Financial Markets, Institutions and Money, 62, pp. 264–280. doi: https://doi.org/10.1016/j.intfin.2019.08.002.
Harrison, R. (2013) ‘Crowdfunding and the revitalisation of the early stage risk capital market: catalyst or chimera?’ Taylor & Francis.
Hidajat, T. et al. (2016) ‘Crowd funding: financial service for unserved crowds in Indonesia’, in International Conference, Integrated Microfinance Management for Sustainable Community Development(IMM 2016). Bandung: Atlantis Press. Available at: http://www.atlantis-press.com/php/pub.php?publication=imm-16.
Hidajat, T. (2019) ‘BEHAVIOURAL BIASES IN BITCOIN TRADING’, Fokus Ekonomi: Jurnal Ilmiah Ekonomi, 14(2), pp. 337–354.
Hidayat, T. (2011) Buku pintar investasi syariah. Mediakita.
Hossain, B. and Naimul Wadood, S. (2020) ‘Impact of urban microfinance on the livelihood strategies of borrower slum dwellers in the Dhaka city, Bangladesh’, Journal of Urban Management. doi: https://doi.org/10.1016/j.jum.2019.12.003.
Ibnu, T. (1995) ‘Majmu’Al fatawa’, Madinah: Mujamma Al Malik Fahd lithiba’atil Mushaf.
iPrice (2019) Siapa Aplikasi E-wallet dengan Pengguna Terbanyak di Indonesia?, iPrice. Available at: https://iprice.co.id/trend/insights/e-wallet-terbaik-di-indonesia/.
Juliette (2013) What is islamic Microfinance ?, Micro World. Available at: https://www.microworld.org/en/news-from-the-field/article/what-islamic-microfinance (Accessed: 4 May 2020).
KPMG (2018) The Pulse of Fintech 2018.
Langley, P. (2016) ‘Crowdfunding in the United Kingdom: A Cultural Economy’, Economic Geography. Routledge, 92(3), pp. 301–321. doi: 10.1080/00130095.2015.1133233.
Liu, J., Li, X. and Wang, S. (2020) ‘What have we learnt from 10 years of fintech research? a scientometric analysis’, Technological Forecasting and Social Change, 155, p. 120022. doi: https://doi.org/10.1016/j.techfore.2020.120022.
Marzban, S., Asutay, M. and Boseli, A. (2014) ‘Shariah-compliant crowd funding: An efficient framework for entrepreneurship development in Islamic countries’, Eleventh Harvard International Islamic Finance Form, Boston, April.
Massolution, C. L. L. C. (2012) ‘Crowdfunding industry report: market trends, composition and crowdfunding platforms’. Research Report. Available at: www. crowdf u finding. nl/wp-content/uploads ….
Navaretti, G. B. et al. (2018) ‘Fintech and Banking. Friends or Foes?’, Friends or Foes.
Obaidullah, M. (2008) ‘Introduction to Islamic microfinance’, Mohammed Obaidullah, INTRODUCTION TO ISLAMIC MICROFINANCE, IBF Net Limited.
Phan, D. H. B. et al. (2019) ‘Do financial technology firms influence bank performance?’, Pacific-Basin Finance Journal, p. 101210. doi: https://doi.org/10.1016/j.pacfin.2019.101210.
Pilkington, M. (2016) ‘Blockchain technology: principles and applications’, in Research handbook on digital transformations. Edward Elgar Publishing.
Pişkin, M. and Kuş, M. C. (2019) ‘Islamic Online P2P Lending Platform’, Procedia Computer Science, 158, pp. 415–419. doi: https://doi.org/10.1016/j.procs.2019.09.070.
Rhule, K. (2016) ‘Islamic Microfinance: a Vehicle for Promoting Financial Inclusion’.
Salampasis, D. and Mention, A.-L. (2018) ‘Chapter 18 - FinTech: Harnessing Innovation for Financial Inclusion’, in Lee Kuo Chuen, D. and Deng Digital Finance, and Inclusion, Volume 2, R. B. T.-H. of B. (eds). Academic Press, pp. 451–461. doi: https://doi.org/10.1016/B978-0-12-812282-2.00018-8.
Shafique, B. (2013) Models of Islamic Microfinance.
Stern, C., Makinen, M. and Qian, Z. (2017) ‘FinTechs in China – with a special focus on peer to peer lending’, Journal of Chinese Economic and Foreign Trade Studies. Emerald, 10(3), pp. 215–228. doi: 10.1108/JCEFTS-06-2017-0015.
Todorof, M. (2018) ‘Shariah-compliant fintech in the banking industry’, in ERA Forum. Springer, pp. 1–17.
Tomczak, A. and Brem, A. (2013) ‘A conceptualized investment model of crowdfunding’, Venture Capital. Routledge, 15(4), pp. 335–359. doi: 10.1080/13691066.2013.847614.
Vulkan, N., Åstebro, T. and Sierra, M. F. (2016) ‘Equity crowdfunding: A new phenomena’, Journal of Business Venturing Insights, 5, pp. 37–49. doi: http://dx.doi.org/10.1016/j.jbvi.2016.02.001.
Yimga, J. (2018) ‘Microfinance expansion and its effects on cost efficiency’, The Quarterly Review of Economics and Finance, 69, pp. 205–216. doi: https://doi.org/10.1016/j.qref.2018.03.006.
Yussof, S. A. and Al-Harthy, A. (2018) ‘Cryptocurrency as an Alternative Currency in Malaysia: Issues and Challenges’, Islam and Civilisational Renewal. International Institute of Advanced Islamic Studies, 274(6071), pp. 1–18.
Zavolokina, L., Dolata, M. and Schwabe, G. (2016) ‘FinTech–What’s in a Name?’
Zhou, W., Arner, D. W. and Buckley, R. P. (2018) ‘Chapter 3 - Regulating FinTech in China: From Permissive to Balanced’, in Lee Kuo Chuen, D. and Deng Digital Finance, and Inclusion, Volume 2, R. B. T.-H. of B. (eds). Academic Press, pp. 45–64. doi: https://doi.org/10.1016/B978-0-12-812282-2.00003-6.