Risk mitigation for cash Waqf collection using financial technology and Internet of Things

• Main Authors: Zakariyah, Habeebullah, Othman, Anwar Hasan Abdullah, Rosman, Romzie, Aminu, Sikiru Olanrewaju
• Format: Book Chapter
• Language: English; English
• Published: Routledge 2021
• Subjects: BPH741 Waqf; HG3368 Islamic Banking and Finance; T Technology (General)
• Online Access: http://irep.iium.edu.my/96806/2/Risk%20mitigation%20for%20cash%20Waqf%20collection.pdf; http://irep.iium.edu.my/96806/9/96806_Risk%20mitigation%20for%20cash%20Waqf%20collection.pdf; http://irep.iium.edu.my/96806/; https://www.taylorfrancis.com/books/edit/10.4324/9781003171638/artificial-intelligence-islamic-finance-adel-sarea-ahmed-elsayed-saeed-bin-nashwan
• Institution: Universiti Islam Antarabangsa Malaysia

The innovation of financial technology has emerged in the 21st century to impact different sectors and industries and their efficiency and effectiveness. Among the industries that adopted FinTech widely is the financial industry. Also, at the same time, the application of Islamic social finance is widely accepted around the world, especially in the Muslim countries. Cash Waqf is among the mechanisms that have been applied by Islamic institutions or organizations to sustain their financial funding. This paper proposes a conceptual framework for cash Waqf institutions applying FinTech for cash Waqf collections. It explains the roles of FinTech-based five concepts or constructs in the proposed model. In addition to that, the adoption of technology can increase efficiency but also expose the users to technology risks that can give negative impacts if not well mitigated, especially with the big data and Internet of Things (IoT) environment. The factors under investigation include the awareness, FinTech knowledge, relative advantages, social norms, and perceived trust as the independent variables and FinTech adoption as the dependent variable where risk mitigation is another independent variable. This model will provide benefits to cash Waqf institutions in Malaysia for their efficiency and policy decisions in enhancing cash Waqf collection. It is expected that the conceptual model will provide contributions in cash Waqf collection, efficiency, and transparency in Malaysia that directly help the State Islamic Religious Councils (SIRCs) and their subsidiaries, in resolving cash Waqf collection management issues.