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

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 en...

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Main Authors: Jauhari, Farah Farhana, Mohd Yusoff, Syarah Syahira, Kassim, Salina
Format: Book Chapter
Language:English
English
Published: Springer 2023
Subjects:
Online Access:http://irep.iium.edu.my/108271/1/108271_Enhancing%20access%20to%20finance.pdf
http://irep.iium.edu.my/108271/2/108271_Enhancing%20access%20to%20finance_SCOPUS.pdf
http://irep.iium.edu.my/108271/
https://link.springer.com/chapter/10.1007/978-3-031-27860-0_31
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Institution: Universiti Islam Antarabangsa Malaysia
Language: English
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spelling my.iium.irep.1082712023-11-21T03:24:13Z http://irep.iium.edu.my/108271/ Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role? Jauhari, Farah Farhana Mohd Yusoff, Syarah Syahira Kassim, Salina BPH531 Zakat BPH72 Economic development. Growth. Sustainable development. Sustainability BPH741 Waqf BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development KBP Islamic Law 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. Springer 2023-07-27 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/108271/1/108271_Enhancing%20access%20to%20finance.pdf application/pdf en http://irep.iium.edu.my/108271/2/108271_Enhancing%20access%20to%20finance_SCOPUS.pdf 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 https://link.springer.com/chapter/10.1007/978-3-031-27860-0_31 10.1007/978-3-031-27860-0_31
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic BPH531 Zakat
BPH72 Economic development. Growth. Sustainable development. Sustainability
BPH741 Waqf
BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development
KBP Islamic Law
spellingShingle BPH531 Zakat
BPH72 Economic development. Growth. Sustainable development. Sustainability
BPH741 Waqf
BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development
KBP Islamic Law
Jauhari, Farah Farhana
Mohd Yusoff, Syarah Syahira
Kassim, Salina
Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
description 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.
format Book Chapter
author Jauhari, Farah Farhana
Mohd Yusoff, Syarah Syahira
Kassim, Salina
author_facet Jauhari, Farah Farhana
Mohd Yusoff, Syarah Syahira
Kassim, Salina
author_sort Jauhari, Farah Farhana
title Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
title_short Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
title_full Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
title_fullStr Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
title_full_unstemmed Enhancing access to finance amongst asnaf micro entrepreneurs: how can Islamic FinTech in zakat institutions play a role?
title_sort enhancing access to finance amongst asnaf micro entrepreneurs: how can islamic fintech in zakat institutions play a role?
publisher Springer
publishDate 2023
url http://irep.iium.edu.my/108271/1/108271_Enhancing%20access%20to%20finance.pdf
http://irep.iium.edu.my/108271/2/108271_Enhancing%20access%20to%20finance_SCOPUS.pdf
http://irep.iium.edu.my/108271/
https://link.springer.com/chapter/10.1007/978-3-031-27860-0_31
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