Fintech solutions form a special system of interaction in the modern financial world. If the functioning of such systems does not violate the laws of Islam (riba, alcohol, etc.), their work will not be prohibited. Despite the fact that Islamic fintech is still in the initial stage of its development, the potential of this market is really huge and attracts not only Muslims, but also followers of other religions who are looking for reliable, ethical and promising financial management tools in the era of digital change.
What is it that attracts users of Muslim fintech and similar systems in general?
1. Effective use of mobile payments.
Now we live in a tech-savvy society, where the use of mobile phones has increased significantly over the past few years. For example, in Indonesia, the country with the largest Muslim population, in 2019 87% of households had a mobile phone, and the number of smartphone owners was about 56 million people. According to experts, by 2024 this number will grow to 96.2 million.
Users prefer to conduct their financial transactions on the go, at the touch of a button on their smartphone, preferring mobile services to tedious waiting in financial institutions. Thus, the use of fintech on smartphones leads to more user-friendly, efficient and comfortable financial transactions.
2. Low transaction cost
The catalyst for increasing the competitiveness of fintech is that the development of such systems leads to lower costs and fees for transactions. Ultimately, this will lead to an increase in the quality of customer service. In addition, in fintech, the need for an intermediary is reduced or even eliminated, and thanks to the digital integration of the system, costs for both customers and service providers are reduced exponentially. Thus, investors potentially receive higher returns by investing directly in projects through virtual financial markets.
3. Flexibility and transparency
Thanks to the virtual integration of the system and automation of most processes, fintech projects create flexibility and convenience for users, since now they can access their data and funds from anywhere and at any time. Electronic account management systems also allow you to virtually organize and transparently manage finances from anywhere in the world.
In addition, fintech services can be adapted in accordance with the requirements of Islam and Shariah. Transparency of transactions is important to ensure clarity of relationships, roles and expectations, which prevents gharar or excessive uncertainty, which are the main prohibitions in Islamic finance. The transparent flow of information and business relations correspond to the Makasid al-Shariah (the goals of Islamic law) by ensuring the principles of justice.
4. Financial accessibility
According to the World Bank, over the past 5 years, the growth in the number of users of financial services has increased by 700%. This growth is associated with the development and implementation of fintech projects. Islamic fintech brings the principles of ethics, accessibility to these trends and creates ecosystems with maximum financial efficiency. Money in Islamic fintech benefits the entire community, all segments of society and brings us closer to ideal financial systems.
HAQQ blockchain can be used in the implementation of fintech projects based on the principles of Islamic finance. This blockchain network fully complies with the rules of Shariah, has its own digital currency and a Fatwa issued by well-known Shariah scholars.
The Evergreen DAO Fund, funded by the issue of Haqq base tokens and managed by network participants, is designed to support innovative projects for the international Muslim community. High bandwidth makes Haqq an ideal tool for implementing digital campaigns.
IslamicCoin is a digital currency conforming to the norms of Islam and Shariah, functioning in its own blockchain Haqq, which means “Truth”. Already at the stage of closed sales, IslamicCoin aroused huge investor interest and was able to raise more than $ 200 million in just a few weeks. Unlike technically outdated Bitcoin and Ethereum, which have a lot of problems, IslamicCoin uses the full power of the most progressive blockchain technologies and is based on the most fair and reliable ideology and rules of conduct.
Successful investors choose ideology, technology and prospects based on something more than minor fluctuations in price charts. For almost 20 years of the existence of a new type of digital money, cryptocurrencies have not brought a drop of real value into this world, have not made people free, independent and happy. And this means that it’s time for a new type of finance based on responsible choices and new values!