Fintech-Enabled Islamic Financial System and Financial Stability

  • Etsuaki Yoshida


This chapter picks up recent trends of Islamic Fintech, and sheds light on its potential effects on the stability of a financial system. Use of information and communication technologies (ICT) in financial services is expected to create huge changes, and so is to Islamic finance. Especially, Fintech will reduce the cost related to supply and consumption of financial services, but there is more than that. This study intends to sort out those benefits of using Fintech by describing positive effects in terms of Shari’ah and financial stability. While Islamic finance has achieved certain success in terms of quantitative growth and expansion to many countries, some academic scholars criticize the current practice as just “replica” of the conventional equivalent, and there is little element of Shari’ah in it. The study argues that Fintech can provide practical solutions to these criticisms, by focusing on the aspect of its networking capability. As a conclusion, increased application of Islamic Fintech will contribute to mitigating financial instability, by promoting financial inclusion and involving more diversified flow of funds.


Fintech Equity-based financial system Crowdfunding waqf zakat 

JEL Classification

G20 G21 G28 


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Copyright information

© Islamic Research and Training Institute 2019

Authors and Affiliations

  • Etsuaki Yoshida
    • 1
  1. 1.Kyoto UniversityKyotoJapan

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