Fintech and Shariah Principles in Smart Contracts

Rahim, Norafni @ Farlina; Bakri, Mohammed Hariri; Yahaya, Siti Norbaya

doi:10.4018/978-1-5225-7805-5.ch009

Cited by 22 publications

(14 citation statements)

References 7 publications

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“…Stewart and Jü rjens (2018) define FinTech "as the use of platforms of technology and mobile devices to access transaction notifications, bank account and credit, as well as debit alerts via push notifications through short message service, application or another way of getting notifications". The term Islamic FinTech, on the contrary, is defined as "FinTech with Shariah principles and Islamic values" (Rahim et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Acceptance of Islamic financial technology (FinTech) banking services by Malaysian users: an extension of technology acceptance model

et al. 2020

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Purpose This paper aims to examine the determinants that influence bank users’ acceptance for Islamic financial technology (FinTech) services by extending the technology acceptance model (TAM) in the Malaysian context. Design/methodology/approach The survey was conducted using convenience sampling. Moreover, 205 responses were gathered from users of the Islamic bank. On the same note, the literature on determinants of Islamic FinTech acceptance and TAM was reviewed as well in a bid to contribute to the factors that are instrumental in determining the acceptance of FinTech services. Findings Findings of the study reveal that Islamic FinTech’s services acceptance is determined by perceived ease of use, perceived usefulness and also by another variable, which is consumer innovativeness (CI). On the contrary other factors, self-efficacy and subjective norms are found not to be influential in determining Islamic FinTech’s acceptance by Islamic banking users. Originality/value TAM is extended in the context of Islamic FinTech. A new variable, namely, CI is tested using TAM. CI is yet to be tested, therefore, this paper will be a useful reference for the policymakers, academicians and future researchers.

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Section: Introductionmentioning

confidence: 99%

Acceptance of Islamic financial technology (FinTech) banking services by Malaysian users: an extension of technology acceptance model

et al. 2020

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“…Islamic Fintech based financial services such as, crowdfunding and sharia compliant P2P lending can be a viable option to help and support these organizations. Moreover, smart contract based Murabaha, Mudaraba and Musharaka contract can be executed to help these industries to fight and survive in the medium term [33], [34]. Long-term recovery and resilience: The pandemic is not going to end soon and after effects will be felt in the years to come.…”

Section: Use Of Fintech Post Covid-19mentioning

confidence: 99%

Embracing of Fintech in Islamic Finance in the post COVID era

Rabbani

Abdulla

Basahr

et al. 2020

2020 International Conference on Decision Aid Sciences and Application (DASA)

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The novel corona virus (COVID-19) is a phenomenon with the aftereffects of this pandemic can be felt in the next few years to come. Economic consequences of the pandemic are huge on the Islamic finance industry, it is also evident from the slow growth forecast by the various agencies for the industry. In this paper, we consider this pandemic as an opportunity for the Islamic finance industry to grow and prove its worth again after the global financial crisis of 2008 and emerge as a major contender to the conventional financial system. We develop a model which reveals that COVID-19 is an opportunity with more integrated and transformative growth with high level of standardization, with key focus of the industry on the social cause and tactical adoption of Financial technology. The paper has an implication to the Islamic finance and banking industry as it provides a framework for the future researchers and practitioners to understand and adopt Islamic finance in the post COVID-19 era.

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“…Todorof (2018) suggests that the introduction of FinTech in the Islamic finance industry will improve competitiveness, reduce the cost and price of the services and will also reduce the credit gap. Rahim et al (2019) find that the Islamic finance industry is faith-based, and therefore, Sharīʿah principles must be followed in all aspects, activities and mechanisms.…”

Section: Literature Reviewmentioning

confidence: 99%

The effects of eliminating Riba in foreign currency transactions by introducing global FinTech network

Selim

2020

IMEFM

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Purpose This paper aims to investigate the effects of eliminating Riba in foreign currency transactions. Riba or interest arises when foreign currencies are bought and sold at different rates. From the Islamic perspective, the difference between the buying and selling rates of foreign exchange will constitute Riba. Also, this paper examines the effects of eliminating such Riba on major macroeconomic variables. Design/methodology/approach This study is based on the hadith which imply that if buying and selling rates of currencies or foreign exchanges are same, i.e. if one sells BD1 = Dh10 and Dh10 = BD1 on spot, there will be no Riba. This can be guaranteed if the Islamic banking system introduces the technology, often known as FinTech interest-free foreign exchange bank machines (IFfexBM), which will automatically dispense BD10 for Dh100 and vice-versa, both locally and globally, and it will have tremendous positive effects in the economy. Furthermore, the effects of introducing FinTech for eliminating Riba will be analyzed on economic and international trade activities by using aggregate expenditure (AE) and aggregate output model within the tenets of Islamic principles. Findings If Islamic banks (IBs) can introduce FinTech global network system where any client can buy or sell foreign currency at the same rate without any markup, it will increase the market share for IBs by increasing the number of customers and number of branches, and it will increase the inflow of funds and volumes of transactions, especially in international trade, global financial transactions and cross-border shopping. Such an increase in transactions will increase AE and AE will continuously shift up. Such an upward shift will have positive effects on equilibrium output, employment and prosperity. Originality/value This is, perhaps, one of the latest attempts to eliminate Riba from foreign exchange transactions by introducing FinTech IFfexBM in each and every locality. Such elimination of Riba will not only reduce the cost of cross-border transactions but it will also reduce cost in international trade and financial transactions among nations, and therefore, it will have expansionary effects on equilibrium output, employment and global prosperity.

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Fintech and Shariah Principles in Smart Contracts

Cited by 22 publications

References 7 publications

Acceptance of Islamic financial technology (FinTech) banking services by Malaysian users: an extension of technology acceptance model

Acceptance of Islamic financial technology (FinTech) banking services by Malaysian users: an extension of technology acceptance model

Embracing of Fintech in Islamic Finance in the post COVID era

The effects of eliminating Riba in foreign currency transactions by introducing global FinTech network

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