Achieving financial inclusion: a comparative discourse between Islamic and conventional finance approaches

Saifurrahman, Adi and Kassim, Salina (2020) Achieving financial inclusion: a comparative discourse between Islamic and conventional finance approaches. In: 2nd National Seminar on Contemporary Fiqh (NSCF 2020), 9th December 2020, Kuala Lumpur. (Unpublished)

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Abstract

The achievement of financial inclusion is deemed essential due to its positive linkage with economic development. Once the notion viewed as a means to alleviate poverty and reduce income inequality. Recently, the concept has developed into an essential pre-requisite for financial stability and economic growth. Inclusive financial systems allow producers and households to smoothen their production and consump-tion of goods and services in the economy; and thus, generating more income in the society. Due to this constructive characteristic, financial inclusion mechanism is en-couraged by the Islamic views on economic development and poverty alleviation. However, the implementation of this mechanism must refer to how Islam regulates the transaction and treat the risk. Hence, the implication and the result of the inclusive fi-nancial system will have distinctive features and quality compared to conventional financial inclusion. The core objective of this study is to explore and investigate how the financial inclusion process should be conducted and attained based on the Islamic finance concept and compares its implication with the conventional finance system. The study suggests that Islam has a different characteristic in achieving financial inclu-sion, and it was reflected on how the risk is discerned and the primary goal of spiritual and material balance being considered as the ultimate objective of economic develop-ment in Islamic finance perspective.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	4600/87426 Presented via Zoom
Uncontrolled Keywords:	Financial inclusion, Islamic finance, conventional finance, risk-sharing, economic development
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	04 Jan 2021 14:44
Last Modified:	05 Jan 2021 17:24
URI:	http://irep.iium.edu.my/id/eprint/87426

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