Development of FinTech in Islamic Social Finance in Malaysia

Muhammad Iqmal Hisham Kamaruddin; Mustafa Mohd Hanefah; Amir Shaharuddin; Abdullah Mohammed Ahmed Ayedh; Nur Adilah Othman

doi:10.31436/ijema.v31i1.1143

Authors

Muhammad Iqmal Hisham Kamaruddin Universiti Sains Islam Malaysia, Malaysia
Mustafa Mohd Hanefah Universiti Sains Islam Malaysia, Malaysia
Amir Shaharuddin Universiti Sains Islam Malaysia, Malaysia
Abdullah Mohammed Ahmed Ayedh Universiti Sains Islam Malaysia, Malaysia
Nur Adilah Othman Universiti Sains Islam Malaysia, Malaysia

DOI:

https://doi.org/10.31436/ijema.v31i1.1143

Keywords:

FinTech, Islamic social finance, Challenges, Prospects, Impact

Abstract

This study aims at investigating adoption of FinTech in Islamic social finance especially for zakat and waqf institutions in Malaysia. A focus group discussion (FGD) with 13 zakat and waqf officers and FinTech experts in Malaysia was conducted. For reporting purposes, this study employed a single-case study approach. The FGD was conducted and completed at the end of December 2021 via an online approach through the Zoom platform. The findings highlight the level of FinTech adoption, issues, challenges, and prospects of FinTech adoption as well as impact of FinTech adoption especially on collecting, managing and distributing the Islamic social finance funds (zakat and waqf) to beneficiaries. The study findings and recommendations are useful especially for zakat and waqf institutions as well as the State Islamic Religious Councils (SIRCs) to utilize FinTech in their operation. This study is among the pioneer studies that explore FinTech adoption in Islamic social finance in Malaysia.

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