Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?

Jauhari, Farah Farhana and Mohd Yusoff, Syarah Syahira and Kassim, Salina (2023) Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role? In: Islamic Sustainable Finance, Law and Innovation: Opportunities and Challenges. Contributions to Management Science . Springer, Cham, pp. 345-357. ISBN 978-3-031-27859-4

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Abstract

While the ideal case is that micro entrepreneurs should gain easy access to finance as they require more financial supports, traditional financial institutions often reject their financing applications due to the high risk associated with this segment. Thus, an alternative channel to enable micro entrepreneurs to gain access to financing is urgently needed. This study aims to explore the potential application of Islamic FinTech to expand financing outreach in zakat institutions. In achieving its objectives, this study examines the current state of microfinancing which includes the market size and players, existing financing schemes available, current issues and challenges facing microfinancing providers and potential FinTech applications that can be adopted by the microfinancing industry, particularly the zakat institutions. A critical analysis of the market is important as a starting point in comprehending Asnaf micro entrepreneurs who are facing this financial difficulty. It is believed that zakat institutions can play an effective role in enhancing access to finance for the underserved. This study is only limited to the Malaysian context but can be further extended in more comprehensive empirical research. The findings will assist zakat institutions in formulating their FinTech financing strategy and provide an alternative approach to improve micro entrepreneurs’ access to finance as well as their repayment capability.

Item Type:	Book Chapter
Uncontrolled Keywords:	Access to finance, Islamic FinTech, Asnaf micro entrepreneurs
Subjects:	BPH Islamic Economics > BPH531 Zakat BPH Islamic Economics > BPH72 Economic development. Growth. Sustainable development. Sustainability BPH Islamic Economics > BPH741 Waqf BPH Islamic Economics > BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development K Law > KBP Islamic Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	DR Syarah Syahira Mohd Yusoff
Date Deposited:	21 Nov 2023 10:58
Last Modified:	21 Nov 2023 11:24
URI:	http://irep.iium.edu.my/id/eprint/108271

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