Fintech and Islamic Finance: Literature Review and Research Agenda

Hasan, Rashedul; Hassan, M. Kabir; Aliyu, Sirajo

doi:10.18196/ijief.2122

Cited by 100 publications

(91 citation statements)

References 22 publications

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“…Islamic Fintech must comply with the principles of sharia as every Fintech based innovation is welcome and acceptable and it becomes unacceptable and impermissible if there is clear evidence that it violates the principles laid down by sharia [34]. It must be noted that any innovation or advancement is permissible in Islam unless there is clear evidence that prohibits it [35][36][37].…”

Section: Introduction and Research Questionmentioning

confidence: 99%

Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

Rabbani

Bashar

Nawaz

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

107

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The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

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Section: Introduction and Research Questionmentioning

confidence: 99%

Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

Rabbani

Bashar

Nawaz

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

107

View full text Add to dashboard Cite

show abstract

“…Islamic fintech has the potential to ensure that Shariah-compliant products are available to the global market. The Central Bank of Bahrain, Bank Indonesia and Bank Negara Malaysia have improved the standards required to supervise Islamic fintech companies (Hasan et al, 2020).…”

Section: Related Literaturementioning

confidence: 99%

Spillovers and bivariate portfolios of gold-backed cryptocurrencies and gold during the COVID-19 outbreak

Nugroho

2021

JIABR

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Purpose This paper aims to analyze the time-varying connectedness of gold-backed cryptocurrencies and gold. This study determines the volatility spillovers in these two asset classes and the performance of bivariate portfolios based on net pairwise spillovers. Design/methodology/approach This research uses two Islamic and four conventional gold-backed cryptocurrencies and gold as variables. GJR-GARCH method under corrected DCC (cDCC) of Aielli (2013) evaluates the dynamic connectedness. Additionally, the spillovers are created using the dynamic connectedness of Diebold and Yilmaz (2012). A network-based spillover of Diebold and Yılmaz, (2014) is also made. A dynamic optimal weights strategy optimized with DCC-t-Copula determines bivariate portfolios’ performances. In general, there are 21 bivariate portfolios. Findings The outbreak of COVID-19 increases the dynamic connectedness of gold and gold-backed cryptocurrencies, which indicates a contagion effect. The results show that gold is the net volatility receiver during the COVID-19 pandemic. Moreover, a portfolio composed of gold and gold-backed cryptocurrency provides high profitability performance but zero hedge effectiveness under optimal weights strategy. Practical implications According to bivariate portfolios based on net pairwise spillovers, gold-backed cryptocurrencies' investors should not add gold to their portfolio during the pandemic because it is a net receiver of risk from the cryptocurrencies. Originality/value To the best of the author’s knowledge, this is the first paper to create bivariate portfolios composed of gold-backed cryptocurrencies and their underlying asset using DCC-t-Copula.

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“…The time taken by miners and computer power represents the value that authorizes the formation of cryptocurrencies. This differs from the fiat system, where banking institutions and government agencies create money from a consistent value injection (Hasan et al, 2020). The fiat system is debt-based and follows that if a bank makes a loan, a simultaneous match is deposited in the borrower's bank account, which generates new money.…”

Section: Digital Currenciesmentioning

confidence: 99%

Using Blockchain in WAQF, Wills and Inheritance Solutions in the Islamic System

Walaa¹

2021

IJEBA

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Purpose:The paper aims to provide a review of literature on the Islamic social institution of WAQF, dissecting the components of WAQF and the classic Islamic laws that guide its formation and implementation. WAQFs are Islamic social finance institutions that have played a critical role in achieving sustainable development in Islamic society. During the Ottoman era, it was operated effectively to ensure the founder's wishes until the advent of Islamic finance. The study highlights the challenges that the WAQF institution faces and the viability of the Blockchain system in mitigating these challenges and managing WAQF across the globe, which should help achieve the convectional objectives WAQF. Approach/Methodology/Design: The study reviewed the most recent research papers on the WAQF Islamic social finance institution to isolate the institution's components, legal framework and challenges, and outline the solutions Blockchain system can provide. Findings:The study shows that the main challenge obstructing the rejuvenation of the WAQF system to its lost glory has been lack of data, compromised historical records in the event of the Founders' demise, lack of transparency, and inappropriate auditing. Through smart contracts on Blockchain, there is a surety of efficacy and effective performance of WAQF institution and the realization of the founders' objectives. Practical Implications: The study will contribute positively to understanding the historical importance of WAQF as an Islamic social institution and a predecessor to Islamic finance for academia and the possibility of utilizing Blockchain systems in managing WAQF transactions across the globe. Originality/Value: This study believes in contributing to the Blockchain system's understanding as a possible solution to the challenges facing the Islamic social finance system.

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Fintech and Islamic Finance: Literature Review and Research Agenda

Cited by 100 publications

References 22 publications

Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Open Social Innovation of the Islamic Financial System

Spillovers and bivariate portfolios of gold-backed cryptocurrencies and gold during the COVID-19 outbreak

Using Blockchain in WAQF, Wills and Inheritance Solutions in the Islamic System

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