Fintech In Islamic Finance: Theory and Practice

✍ Scribed by Umar A. Oseni, S. Nazim Ali

• Publisher: Routledge
• Year: 2019
• Tongue: English
• Leaves: 375
• Category: Library

✦ Synopsis

Featuring high-level analysis of Islamic law, this book examines fintech in Islamic finance from both theoretical and empirical perspectives. Whilst building on existing approaches, it also discusses the current application of fintech in promoting financial inclusion through innovative solutions in Muslim-majority countries, identifying future directions for policy-makers.

With original chapters written by prominent academics, senior lawyers and practitioners in the global Islamic finance industry, this book serves as the first standalone pioneering reference work on fintech in Islamic finance. It also, for the first time, examines the position of Islamic law on cryptocurrencies, such as bitcoin. Besides the conceptual analysis of the Sharīʿah and legal aspects of fintech in Islamic finance, this book provides relevant case studies showing current and potential developments in the application of fintech in various sectors ranging from crowdfunding and smart contracts, to Online Dispute Resolution, Investment Account Platform and identity verification in the KYC process.
Setting the agenda for researchers in the field, Fintech in Islamic Finance will be useful to students and scholars of Islamic finance and financial technology.

✦ Table of Contents

Cover
Half Title
Title Page
Copyright Page
Contents
List of figures
List of tables
Acknowledgements
List of abbreviations
List of contributors
Part I Introduction
Chapter 1 Fintech in Islamic finance
Current trends in fintech application
Understanding this book
Fintech and financial intermediation
Setting the Sharī‘ah parameters
Legal and regulatory framework for fintech
Current and potential applications of fintech in Islamic finance
Conclusion: Future impacts of fintech in Islamic finance
Notes
References
Part II Fintech and financial intermediation
Chapter 2 Fintech: The opportunity for Islamic finance
Introduction: A brief history of Islamic finance
The state of Islamic finance today
Fintech as an alternative home for Islamic finance
Combining fintech and the Islamic economic model
Conclusion and next steps
References
Chapter 3 Implications of technological advance for financial intermediation in Islamic finance
Sharī‘ah assurance and financial technology
Competition and technological change
Staffing implications of the automation of financial processes
Customer empowerment through technological advance
Automation of data collection and interpretation
Technology to enhance investor decision-making
Technological innovations and Islamic fund offerings
Disruptive consequences for asset managers, brokers and financial advisors
Conclusion
Notes
References
Chapter 4 Fintech in Islamic finance: From collaborative finance to community-based finance
Introduction
Community at the heart of the collaborative economy: The story of Ahmed Barrad
The emergence of community-based finance in the collaborative economy
Disruptive technologies in the era of hyper-connectivity
Fintech and the democratisation of finance in the collaborative economy
The financial industry’s response to fintech
Is the Islamic finance industry ready for fintech?
The Islamic finance industry’s response
Fintech from a Sharī‘ah perspective
Conclusion
References
Chapter 5 Financial intermediation, fintech and Sharī‘ah compliance
Introduction
Financial intermediation and economic growth
Fintech and financial intermediation
How Sharī‘ah-compliant fintech solutions enhance financial intermediation
Conclusion
References
Chapter 6 E-commerce and Islamic financial intermediation
Introduction
E-Commerce: Nature, processes and models
Major types of e-commerce
Islam and e-commerce
Islamic banks and e-commerce solutions
Conclusion
Note
References
Part III Setting the Sharī‘ah parameters
Chapter 7 Fintech in the light of maqāsid al-Sharī‘ah
Introduction
The potentials of fintech
The fintech ecosystem, models and applications
Islamic finance and fintech
Fintech and maqāsid al-Sharī‘ah
Conclusion
References
Chapter 8 Fintech and Islamic finance: Setting the Sharī‘ah parameters
Introduction
Sharī‘ah and financial innovation
Fintech and Sharī‘ah compliance
Fintech and maqasid al-Sharī‘ah realisation
Conclusion
References
Chapter 9 Currency in Islamic Law: A Sharī‘ah analysis of bitcoin
Introduction
Money in conventional economics and finance
The philosophy of currencies in Islam
The necessary juristic elements for a currency
Establishing a currency in Islam
A fiqh analysis of bitcoin
Is centralisation necessary for money in Islam?
Conclusion
References
Chapter 10 Crowdfunding in Islamic Finance: Ensuring proper Sharī‘ah oversight
Introduction
The nature and definition of crowdfunding
Types of crowdfunding
Advantages and disadvantages of crowdfunding
Crowdfunding market growth
Crowdfunding risks
Crowdfunding regulations
Conclusion
References
Part IV Legal and regulatory issues
Chapter 11 The regulation of fintech and cryptocurrencies
Introduction
Fintech and its role in financial services
Cryptocurrencies and distributed ledger technology
Fintech regulation across the globe
The legality of bitcoin under different regulatory environments
The Islamic perspective on cryptocurrency
Conclusion: What lies ahead
Note
References
Chapter 12 Fintech in Islamic finance: Business models and the need for legal solutions
Introduction
Islamic finance obstacles
Fintech tools and their legal impact
Fintech business models
Conclusion
References
Chapter 13 Blockchain technologies and the prospects of smart contracts in Islamic finance
Introduction: Blockchains
Bitcoin from a Sharī‘ah perspective
Coins, tokens and decentralised applications
Smart contracts
Decentralised intelligent autonomous organisations
Conclusion
Notes
References
Chapter 14 The potentials of smart contract in Islamic trade finance
Introduction
Islamic trade finance: Products, problems, prospects
Smart contract and its application in the finance industry
Smart contract in Islamic trade finance
Conclusion
Notes
References
Part V Case studies: From concept to application
Chapter 15 The emergence of Islamic crowdfunding platforms: A case study of Ethis Ventures
Introduction
EthisCrowd: An overview
Unique market gap EthisCrowd fills
Recent initiatives and the way forward
Conclusion
References
Chapter 16 The Investment Account Platform: A practical application of fintech in Malaysia
Introduction: The impetus for the investment account platform
The regulatory framework for the investment account platform
The establishment of an investment account
The investment account platform
IAP and crowdfunding platforms: A comparison
Conclusion: Way forward
References
Chapter 17 Integrating waqf crowdfunding into the blockchain: A modern approach for creating a waqf market
Introduction
Recent revival of the role of waqf in socio-economic development
Potential of fintech in financing the development of idle waqf properties
Proposed WaqfCoin: Blockchain-enabled crowdfunding for waqf
Conclusion
References
Chapter 18 Blockdentity: A future beyond digital identity
Introduction
Identity, humanity and technology
Identity systems and Islamic financial transactions
Challenges of legacy identity systems in Islamic finance
Legacy identity system and its potential application in Islamic finance
Challenges of legacy identity systems and how it matters in Islamic finance practice
New challenge: Centralised data structure in digital IDs
Blockdentity: An innovative solution redefining the next generation’s digital identity
Blockdentity: Selected services from the marketplace
Conclusion
Notes
References
Chapter 19 Banking on ICT: The relevance of online dispute resolution in the Islamic banking industry in Malaysia
Introduction
Introducing ODR
Relevance of ODR to the Islamic banking industry in Malaysia
Making a case for technology-driven dispute-resolution mechanism at the FMB
Conclusion
Notes
References
Part VI Future directions
Chapter 20 Current trends and future impacts of fintech in Islamic finance
Introduction
Regulations, standards and Sharī‘ah innovation
Sharī‘ah assurance
Enforceability of fintech contracts
Financial inclusion
Contemporary practices of fintech and their future impacts on Islamic finance
Conclusion
References
Index