CHAPTER 4 FINTECH & ISLAMIC FINTECH TOOLS

FINTECH & ISLAMIC
FINTECH TOOLS

DR. NIK HADIYAN NIK AZMAN

Al-Ghazālī's Maqāṣid al-Sharī'ah

HIFZ AL-MAL 1 Refers to all resources 3
which Allah made Adl
subservient to man and (socioeconomic
can be defined as justice)
anything (property) that
can be owned and has
value

2 4
Rights and Promote ihsan
benefits of (mutual
ownership benevolence)

FINTECH MAQASID FRAMEWORK (FMF)

Essentials of Dimension [Objectives]
Daruriyyat Dimension [Means]

Hifz al-Mal Development of mal: Al-Quran Shariah Value Proposition
- Al-Sunnah - Al-Quran
- Al-Ghazali 2004 - Al-Sunnah
- Ibn Ashur 2006 - Al-Ghazali 1971
- Al-Ghazali 2004
- Ibn Ashur 2006
- Al-Shatibi 1997
Socio-economics Welfare
- Al-Quran
- Al-Ghazali 2004
- Chapra 2008

SHARI’AH VALUE DIMENSIONS & 03 SOCIO-ECONOMIC
PROPOSITION ELEMENTS OF WELFARE
THE ESSENTIAL
TRUST, HONESTY, CHARITY, WEALTH
ACCOUNTABILITY, FAIRNESS, OF MAL DISTRIBUTION,
TRANSPARENTCY, WEALTH SOCIAL SHARING
CIRCULATION, AVOIDANCE 01
OF WASTAGE, AVOIDANCE
02 PAYMENT, WEALTH
OF EXTRAVAGANCE, MANAGEMENT, LENDING,
AVOIDANCE OF HOARDING, DEVELOPMENT CROWDFUNDING, CAPITAL
OF MAL
AVOIDANCE OF THEFT, MARKET, INSURANCE,
AVOIDANCE OF ROBO ADVISORY, BIG DATA

MISAPPROPRIATION, ANALYTIC, CLOUD
AVOIDANCE OF COMPUTING,
CORRUPTION
CRYPTOCURRENCY, SOCIAL
MEDIA, BLOCKCHAIN,

EMPLOYMENT, CONSUMER
BEHAVIOUR, INSURTECH,

SANDBOX, SMART
CONTRACT

ELEMENTS OF DEVELOPING MAL [MEANS] ELEMENTS OF SHARI’AH VALUE
PROPOSITION & SOCIO-ECONOMIC
PAYMENT
WEALTH MANAGEMENT WELFARE
TRUST
LENDING
CROWDFUNDING HONESTY
CAPITAL MARKET
ACCOUNTABILITY
INSURANCE
ROBO ADVISOR CONSIDERATION

FAIRNESS

TRANSPARENCY

WEALTH CIRCULATION

ELEMENTS OF DEVELOPING MAL [MEANS] ELEMENTS OF SHARI’AH VALUE PROPOSITION
& SOCIO-ECONOMIC WELFARE
BIG DATA ANALYTICS
CLOUD COMPUTING AVOIDANCE OF WASTAGE
CRYPTOCURRENCY AVOIDANCE OF EXTRAVAGANCE

SOCIAL MEDIA AVOIDANCE OF HOARDING
BLOCKCHAIN AVOIDANCE OF THEFT
EMPLOYMENT
CONSUMER BEHAVIOUR AVOIDANCE OF MISAPPROPRIATION
AVOIDANCE OF CORRUPTION
GENEROUSITY

ELEMENTS OF DEVELOPING MAL [MEANS] ELEMENTS OF SHARI’AH VALUE
PROPOSITION & SOCIO-ECONOMIC
INSURTECH
SANDBOX WELFARE
SMART CONTRACT
CHARITY

WEALTH REDISTRIBUTION

SOCIAL SHARING

WHAT ARE THE FINTECH
TOOLS? HOW ABOUT ISLAMIC

FINTECH TOOLS???



TRENDS OF THE TOOLS 241 Islamic fintech THREE BROAD
services around the BUCKET OF
world, according to
the Global Islamic ISLAMIC FINTECH
Fintech Report 2021
01 02
DinarStandard--
FINANCE SAVE AND Salaam Gateway's
INVEST parent company--

03 and UK-based
Elipses
GIVE &
PROTECT

NUMBER OF ISLAMIC FINTECH COMPANIES IN MALAYSIA

Taka Tech
Trading & Investment
Payment Remittance & FX

Robo Advisory
P2P

Islamic Enablers
Data & Analytics

Crowdfunding
Blockchain & Cryptocurrency

012345

RANKING OF ISLAMIC FINTECH

GEOGRAPHICAL DISTRIBUTION

Africa Asia
Americas 3% 41%

10%

Middle East
21%

Europe
25%

01

02 ORBIT
DIGITAL
INNOVATION 03
HUB
MDEC

GOVERNMENT

MY FINTECH SUPPORT FINTECH
ACADEMY
WEEK

04 05ISLAMIC
DIGITAL
ECONOMY

06

Brings down
customer

onboarding cost

Eliminates 01 02 Replaces
the need for the need
third-party BLOCKCHAIN for walk-in
validation to the bank
04 03 branch

Allows a wider
distribution of
financial services

FINTECH AND NEW AGE TECHNOLOGY

ARTIFICIAL INTELLIGENCE/ML

01Have big applications
in advertising and
customer profiling

02 Can be used for
doing customer
due diligence

03 Can be leveraged to
check anti money
laundering

04Can reduce human
errors/intervention/
crimes

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FINTECH AND NEW AGE TECHNOLOGY

1

HELLO BLOCK 2
GOLD LIME

5

PROXIMAX BLOCKCHAIN

STARTUPS

NEUROWARE FINTERRA

4 3

MAJOR AI STARTUPS 1 CS Tech
data
2opinion
Pand.AI

MAJOR BANK FINTECH PARTNERSHIPS

TOP FUNDED FINTECH STARTUPS





WHAT MALAYSIA'S GROWTH MEANS FOR NEIGHBOURS

• enjoys a significant position in terms of growth of fintech, healthy competition will help spur growth in the
fintech scene across different ASEAN.

• Fintech services also have cross border aspects to them.
• Surrounding countries will also see more adoption as users will expect ability to spend using cards/e-wallets

when usage is more prevalent.
• However, intra-ASEAN, for fintech services to be seamlessly accepted in ASEAN-10 requires similar

infrastructure such as:
• Fast and stable internet connectivity
• No government censorship
• Cloud computing in financial services
• Open data policies

CASE TO DISCUSS

“As a start-up, we need to prove that we can get trace on as soon as
possible. Singapore is a country of five million, half of which are foreigners,

and only about 400,000 are Muslims and half of whom are women and
children – the market is therefore limited. In the first two weeks we’ve
launched in Malaysia, we’ve already had a few thousand registered users –
these kinds of numbers we can only get in Malaysia. People go to Singapore
because of the availability of money but it didn’t work for us because
venture capital fi rms do not understand Islamic fi nance and we will not get
the same regulatory support from Monetary Authority of Singapore as we
did from the Securities' Commission Malaysia as there is no Islamic finance

push in Singapore.”

Syakir Hashim, Regional Head (APAC), Wahed Inc