The Application of Blockchain Technology in Crowdfunding: Towards Financial Inclusion via Technology

Muneeza, Aishath; Arshad, Nur Aishah; Arifin, Asma Tajul

doi:10.18646/2056.52.18-007

Cited by 65 publications

(64 citation statements)

References 3 publications

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“…On the other hand, CBs earn more income than Islamic banks by charging interest (riba) on loans and impose a penalty fee in the case of late payment. However, IBs are not allowed to charge interest by lending to customers because it contradicts Shariah teaching (Muneeza et al, 2018). Furthermore, the profitability of IBs relies more on dynamics than that of conventional ones (Yanikkaya et al, 2018).…”

Section: Resultsmentioning

confidence: 99%

“…Like conventional banks, Islamic banks also adopted Fintech in their businesses (Muneeza et al, 2018). For instance, in 2016, six Malaysian IBs including Bank Islam and Bank Muamalat have launched an Investment Account Platform (IAP), Malaysia's first multi-bank platform for financial intermediation in the Islamic financial system (Global Islamic Finance report, 2017).…”

Section: Resultsmentioning

confidence: 99%

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Financial Performance of Islamic and Conventional Banks in Malaysia: A Comparative Analysis

Sulub¹,

Salleh²

2019

IJMAR

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This paper analyses the financial performance of Islamic (IB) and conventional banks (CB) in Malaysia comparatively, within the scope of a dual setting arrangement in the Malaysian financial industry. Performance evaluation of both types of banks relies on ratio analyses which include Return on Equity (ROE), Return on Assets (ROA), Earnings per Share (EPS) and Debt Ratio. Data for this study covers four full-fledged IBs and four CBs in the period between 2012 and 2016. Based on statistical analysis (t-test and correlation analysis), the average of ROE was 6% for IBs and 14% for CBs. Results of t-test reveals that this higher performance of CBs is significant (t-test=1.957, p-value= 0.029). Furthermore, both ROA and EPS were significantly different between the two groups at p-value less than 1%. These results indicate that the Malaysian CBs performed better than IBs, at least for the banks included in this study. In terms of debt ratio, (the percentage of liabilities to total assets), IBs carry more debts than CBs. The risk of this higher debt is that the bank may be at risk of bankruptcy and may not be able to pay its obligations on time. The difference between the average debt of the two groups is significant at less than 5% (t-test= -2.251, p-value= 0.015). Therefore, not only is IBs’ performance inferior to CBs but their debt ratio is also higher. This research has implications for IBs; they should further improve their performance to become more competitive in the current environment for the financial industry. More importantly, IBs need to uphold Islamic ethics throughout their business operations to ensure that both the stated principles and subsequent objectives are achieved.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Financial Performance of Islamic and Conventional Banks in Malaysia: A Comparative Analysis

Sulub¹,

Salleh²

2019

IJMAR

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“…While cryptocurrency represents an alternative form of donation, smart contract could make the waqf collection process more efficient and transparent. A smart contract is a computer protocol that executes the terms of a contract, which can be made partially or Returns from investment will be channelled to Waqf assets and projects fully self-executing (Muneeza et al, 2018). The terms and conditions of a contract are written as code and the contract executes itself when the conditions are made.…”

Section: Waqfcoin Model and Blockchain Platformmentioning

confidence: 99%

Waqfintech and Sustainable Socio-Economic Development

Mohsin

2019

IJMAR

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This paper aims to discuss the use of financial technology in waqf (Islamic endowment) for funding religious and social causes. It is believed that waqfintech could reach a wider audience and benefit more people in need through the use of innovative financial technology like crowdfunding and blockchain. The main objective of this paper is to introduce the concept of waqfcrowd and waqfcoin as a means of collecting and managing waqf in the digital age. Waqf institutions can thus take advantage of technological innovation to utilise the convenience and efficiency offered by financial technology. This is a conceptual paper which reviews the relevant literature regarding waqf and financial technology. One major limitation of this paper is that it does not discuss the regulatory and operational details of how to institutionalise blockchain technology in different regions. This paper intends to inspire Islamic financial institutions and waqf institutions to harness the potential of waqfintech to raise funds in an effective way.

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“…The application of blockchain in the financial sector is observing new avenues in various domains every day. One of such application is in the domain of crowdfunding, a research by Muneeza (2018) discuss the application of blockchain in crowdfunding. Research suggests that the use of blockchain technology in crowdfunding can diminish the issues faced on crowdfunding platforms based on six crowdfunding platforms (Muneeza, 2018).…”

Section: Blockchain and Islamic Financementioning

confidence: 99%

FinTech, Blockchain and Islamic Finance: An Extensive Literature Review

Rabbani¹,

Khan²,

Thalassinos³

2020

IJEBA

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Purpose: The paper aims to review the academic research work done in the area of Islamic financial technology. The Islamic FinTech area has been classified into three broad categories of the Islamic FinTech, Islamic Financial technology opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. Finally, the study identifies and highlights the opportunities and challenges that Islamic Financial institutions can learn from the conventional FinTech organization across the world. Approach/Methodology/Design: The study collected 133 research studies (50 from Social Science Research Network (SSRN), 30 from Research gate, 33 from Google Scholar and 20 from other sources) in the area of Islamic Financial Technology. The study presents the systematic review of the above studies. Findings: The study classifies the Islamic FinTech into three broad categories namely, Islamic FinTech opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. The study identifies that the sharia compliance related to the cryptocurrency/Blockchain is the biggest challenge which Islamic FinTech organizations are facing. During our review we also find that Islamic FinTech organizations are to be considered as partners by the Islamic Financial Institutions (IFI's) than the competitors. If Islamic Financial institutions want to increase efficiency, transparency and customer satisfaction they have to adopt FinTech and become partners with the FinTech companies. Practical Implications: The study will contribute positively to the understanding of Islamic Fintech for the academia, industry, regulators, investors and other FinTech users. Originality/Value: The study believes to contribute positively to understanding of Fintech based technology like cryptocurrency/Blockchain from sharia perspective.

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The Application of Blockchain Technology in Crowdfunding: Towards Financial Inclusion via Technology

Cited by 65 publications

References 3 publications

Financial Performance of Islamic and Conventional Banks in Malaysia: A Comparative Analysis

Financial Performance of Islamic and Conventional Banks in Malaysia: A Comparative Analysis

Waqfintech and Sustainable Socio-Economic Development

FinTech, Blockchain and Islamic Finance: An Extensive Literature Review

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