Abstract
Purpose―FinTech revolutionized financial services and created efficient solutions to target underserved people. This chapter aims at understanding the way Islamic FinTech can improve the Islamic finance industry in order to achieve economic inclusion.
Design/methodology/approach―The chapter presents a conceptual framework based on case studies and literature review describing the way Islamic FinTech can serve to upgrade economic inclusion efforts.
Findings―The chapter shows that Islamic FinTech can revolutionize the way Islamic financial services are provided and to ensure an integration between the Islamic social finance and the Islamic financial institutions.
Research limitations/implications―The chapter focused only on the implemented solutions without giving an insight about how new technologies such as blockchain can enhance the efforts and the results.
Practical implications―The chapter demonstrates that Islamic FinTech should be seen as a fundamental pillar of any financial inclusion policy. The latter should target economic inclusion.
Social implications―In general, any financial inclusion policy drafted by Islamic financial institutions shall target economic inclusion and adopt Islamic FinTech.
Originality/value―Financial inclusion literature focuses mainly on the access to financial services. This chapter upgrades the initiatives and efforts to achieve economic inclusion.
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Notes
- 1.
For further details, please visit: https://www.un.org/sustainabledevelopment/sustainable-development-goals/
- 2.
The Nickel Account is a payment account that can be opened at any tobacconist in France. For further details, Check the website: https://compte-nickel.fr/
- 3.
The XTM solution provided by Kuveyt Turk Participation bank in Turkey. For further details, Check the website: https://www.kuveytturk.com.tr/en/branchless-banking/digital-xtm-branch/general-features
- 4.
Let us take the example of BNP PARIBAS. The bank has more than 30 million of clients (in France, Italy, Luxembourg and Belgium) while its digital bank (HELLO BANK) has reached only 3 million of customers in Europe. Indeed, the threat is here but not as estimated.
- 5.
Easypaisa is an initiative launched by Telenor Pakistan in collaboration with Tameer Microfinance Bank with the approval of State Bank of Pakistan.
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Websites
Climate bonds initiative: https://www.climatebonds.net
Credit Guarantee Corporation (CGC) in Malaysia - https://www.cgc.com.my/
Caisse Centrale de Garantie (CCG) in Morocco –http://www.ccg.ma/
Fonds de garantie des crédits aux PME (FGAR) in Algeria - https://www.fgar.dz/portal/fr
Kuveyt Turk Bank: https://www.kuveytturk.com.tr/en/branchless-banking/digital-xtm-branch/general-features
Compte nickel in France: https://compte-nickel.fr/
https://newzoo.com/insights/rankings/top-50-countries-by-smartphone-penetration-and-users/
United nations: https://www.un.org/sustainabledevelopment/sustainable-development-goals/
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Jouti, A.T. (2021). Islamic FinTech and Financial Inclusion. In: Billah, M.M. (eds) Islamic FinTech. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-45827-0_12
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DOI: https://doi.org/10.1007/978-3-030-45827-0_12
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