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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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 |
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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? |
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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 |
_version_ |
1783876127145590784 |