The Future Role of Islamic Finance and Financial Technology
Chapter from the book: Yücel, R. & Ayyıldız, Y. & Er, H. (eds.) 2023. Innovations that Digitalization Brings to the Finance Sector.

Hülya Er
Bolu Abant İzzet Baysal University

Synopsis

It is stated that Islamic finance emerged as an alternative to the traditional financial system, and, with the development of technology, it developed innovative products and services in the field by adopting new-generation technologies. Islamic financial technology (FinTech) is a concept that aims to make Islamic financial products and services available on digital platforms by the basic principles of Islamic law. It is known that the recognition and market share of Islamic finance and Islamic fintech initiatives have grown over the years. Islamic fintech contributes to increasing financial access and the growth and spread of Islamic finance by allowing financial transactions to occur quickly and easily. Islamic finance institutions and organizations need to adopt financial technologies and cooperate with stakeholders in line with the principles of Islamic finance in order to reach their desired market shares and achieve their goals in the highly competitive market. In this study, FinTech solutions in the field of Islamic finance that comply with the principles of Islamic law are examined. As a result of the study, disseminating financial technologies in Islamic finance products and services will positively contribute to the growth and development of the Islamic finance sector. It is evaluated that FinTech applications, which are heavily involved in the financial market during the digital transformation and development process, will have important roles in the future growth of the Islamic finance market. The increase in FinTech companies can accelerate the entry of unregistered investments of individuals who have problems accessing financial services into the financial market and positively contribute to developing the Islamic financial system and ensuring social justice.

How to cite this book

Er, H. (2023). The Future Role of Islamic Finance and Financial Technology. In: Yücel, R. & Ayyıldız, Y. & Er, H. (eds.), Innovations that Digitalization Brings to the Finance Sector. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub298.c1470

License

Published

October 27, 2023

DOI