Volume 05 Issue 04-2025
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International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
05
ISSUE
04
Pages:
67-74
OCLC
–
1368736135
A
BSTRACT
The article discusses the traditional financial system and its problems, the concept of Islamic fintech, its
main characteristics and development directions. The application of modern information technologies in
the Islamic financial system in accordance with Sharia law is analyzed, and the economic and social
significance of Islamic fintech is emphasized. The limitations and prospects of Islamic fintech in the
industry are also discussed.
K
EYWORDS
Islamic finance, fintech, Sharia, international finance, blockchain, digital economy.
I
NTRODUCTION
َيِقَب اَم او ُرَذ َو َ َّللَّا اوُقَّتا اوُنَمآ َنيِذَّلا اَهُّيَأ اَي{ ىَلاَعَت ِهِل ْوَقِل اَب ِ رلا ِلِكوُم ُباَب
ْنُك ْنِإ اَب ِ رلا ْنِم
ِهِلوُس َر َو ِ َّللَّا ْنِم ٍب ْرَحِب اوُنَذْأَف اوُلَعْفَت ْمَل ْنِإَف َنيِنِمْؤُم ْمُت
ُتْبُت ْنِإ َو
ْم
ْمَأ ُسوُء ُر ْمُكَلَف
ٍة َرْسُع وُذ َناَك ْنِإ َو َنوُمَلْظُت َلَ َو َنوُمِلْظَت َلَ ْمُكِلا َو
اًم ْوَي اوُقَّتا َو َنوُمَلْعَت ْمُتْنُك ْنِإ ْمُكَل ٌرْيَخ اوُقَّدَصَت ْنَأ َو ٍة َرَسْيَم ىَلِإ ٌة َرِظَنَف
ْمُه َو ْتَبَسَك اَم ٍسْفَن ُّلُك ىَّف َوُت َّمُث ِ َّللَّا ىَلِإ ِهيِف َنوُعَج ْرُت
َلْظُي َلَ
ُم
و
َن
}
Believers! Have fear of Allah and give up all
outstanding interest if you do truly believe. But if
you fail to do so, then be warned of war from Allah
and His Messenger. If you repent even now, you
have the right of the return of your capital; neither
Journal
Website:
http://sciencebring.co
m/index.php/ijasr
Copyright:
Original
content from this work
may be used under the
terms of the creative
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attributes
4.0 licence.
Research Article
Islamic Fintech
–
Future and Prospects
Submission Date:
February 26,
2025,
Accepted Date:
March 22, 2025,
Published Date:
April 25, 2025
Crossref doi:
https://doi.org/10.37547/ijasr-05-04-09
Alisher Urmanbekovich KHAZRATKULOV
Senior Lecturer, Department of Oriental Languages, Oriental University, Uzbekistan
Mumin Rajabovich BABAZHANOV
Senior Lecturer, Department of ZAKT, International Islamic Academy of Uzbekistan, PhD, Uzbekistan
Mansur Alisherovich Berdimurodov
Senior Lecturer, Department of ZAKT, International Islamic Academy of Uzbekistan, PhD, Uzbekistan
Volume 05 Issue 04-2025
68
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
05
ISSUE
04
Pages:
67-74
OCLC
–
1368736135
will you do wrong nor will you be wronged. But if
the debtor is in straitened circumstance, let him
have respite until the time of ease; and whatever
you remit by way of charity is better for you, if only
you know. And have fear of the Day when you shall
return to Allah, and every human being shall be
fully repaid for whatever (good or evil) he has
done, and none shall be wronged [1, 278-281].
From the end of the 20th century to the beginning
of the 21st century, countries and societies around
the world living on credit developed rapidly. As a
result, several important developments can be
noted:
- the transition of a number of socialist countries to
a market economy;
- the growth of the world's population in high
pictures;
- the use of high technologies in financial systems.
But it is no secret that obtaining a loan is a
temporary solution to this problem, and in some
cases it has led to crises, disasters and even the
collapse of states.
Yes, loans can indeed be considered an acute
problem of the 21st century, since their negative
impact on the state, society, personal financial
situation and the economy is enormous. Here are
the basics of this idea:
Countries, societies and people who receive loans
are put into financial debt and forced to pay
interest for years. This situation puts countries,
societies and people in economic slavery and they
cannot move freely;
States, societies and individuals benefit in the short
term from lending, but in the long run it harms
their financial position;
This increases inequality and injustice in society.
The credit system makes the poor poorer and the
rich richer. This increases the stratification of
society. The poor are forced to pay high interest
rates, while the rich receive even more income
from these interests;
The problematic interest rate model of the credit
system is the cause of global economic crises such
as the financial crisis of 2008;
Enterprises and citizens, having increased their
funds through credit, lose the opportunity to repay
it, which leads to an economic crisis;
Negative spiritual and social consequences: Taking
out a loan seriously affects people's mental state,
and the stress of paying off obligations and debts
negatively affects the lives of many people;
The borrowing culture alienates people from thrift
and teaches them to spend more than they earn,
switches to short-term thinking, people try to buy
unnecessary and unnecessary things, and not their
real needs, financial responsibility disappears, the
credit system alienates people from financial
responsibility.
Interest-bearing loans are prohibited by Islamic
Sharia. The main reason for this is that interest
creates injustice among people and destroys the
economic system. Loans can become a tool that
encourages people to enrich themselves easily and
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1368736135
unfairly instead of working honestly and
responsibly.
In the 21st century, many Muslim countries have
become developed First World countries.
Examples include countries such as Malaysia,
Singapore, Indonesia, and Turkey. These countries
have gradually begun to transform their economies
into Islamic economies. To protect themselves
from the risks of the traditional economy and
financial system, developed Muslim countries have
begun to implement Islamic financial systems that
are familiar to them and in line with their beliefs.
One such movement is Islamic Fintech. Islamic
Fintech is a combination of modern financial
technology and Islamic finance rules, offering
financial services in accordance with Sharia law.
International economic crises have increased the
interest in Islamic Fintech not only among Muslim
countries but also among non-Muslim countries.
This can be understood as a natural reflex that
people always protect themselves from activities
such as usury, uncertainty, and oppression. As a
countermeasure to protect themselves from such
activities, Islamic Fintech emerged as an
alternative financial system that emerged on the
basis of supply and demand.
Usury (percentage)
ْيَّللا ُتْيَأ َر َمَّلَس َو ِهْيَلَع ُ َّللَّا ىَّلَص ُّيِبَّنلا َلاَق
ىَلِإ يِناَج َرْخَأَف يِناَيَتَأ ِنْيَلُج َر َةَل
ىَلَع َو ٌمِئاَق ٌلُج َر ِهيِف ٍمَد ْنِم ٍرَهَن ىَلَع اَنْيَتَأ ىَّتَح اَنْقَلَطْناَف ٍةَسَّدَقُم ٍض ْرَأ
َرَأ اَذِإَف ِرَهَّنلا يِف يِذَّلا ُلُج َّرلا َلَبْقَأَف ٌة َراَج ِح ِهْيَدَي َنْيَب ٌلُج َر ِرَهَّنلا ِطَس َو
َدا
اَمَّلُك َلَعَجَف َناَك ُثْيَح ُهَّد َرَف ِهيِف يِف ٍرَجَحِب ُلُج َّرلا ىَم َر َج ُرْخَي ْنَأ ُلُج َّرلا
يِذَّلا َلاَقَف اَذَه اَم ُتْلُقَف َناَك اَمَك ُع ِج ْرَيَف ٍرَجَحِب ِهيِف يِف ىَم َر َج ُرْخَيِل َءاَج
اَب ِ رلا ُلِكآ ِرَهَّنلا يِف ُهَتْيَأ َر
Ibn Umar (may Allah be pleased with him) said:
“When the Prophet (peace and blessings of Allah be
upon him) bought food, the buyer would refuse to
sell it until he received the full amount.” [3, 131]
Gharar (uncertainty)
َرَبْخَأ َفُسوُي ُنْب ِ َّللَّا ُدْبَع اَنَثَّدَح
َرَمُع ِنْب ِ َّللَّا ِدْبَع ْنَع ٍعِفاَن ْنَع ٌكِلاَم اَن
ِلَبَح ِعْيَب ْنَع ىَهَن َمَّلَس َو ِهْيَلَع ُ َّللَّا ىَّلَص ِ َّللَّا َلوُس َر َّنَأ اَمُهْنَع ُ َّللَّا َي ِض َر
ْلا ُعاَتْبَي ُلُج َّرلا َناَك ِةَّيِلِهاَجْلا ُلْهَأ ُهُعَياَبَتَي اًعْيَب َناَك َو ِةَلَبَحْلا
ْنَأ ىَلِإ َرو ُزَج
اَهِنْطَب يِف يِتَّلا ُجَتْنُت َّمُث ُةَقاَّنلا َجَتْنُت
In the Age of Ignorance, there were various
dubious practices in trade and other aspects of life.
One of them is the trade called "fruit of the fruit"
mentioned in this Hadith. Scholars have explained
Ibn Umar's phrase "fruit of the fruit" as follows.
There was also a custom of trading in the “fruit of
the fruit”. This is trading in the fruit of a straight
camel. This “salam” trade is also not permissible,
since it is trading for something that is not
guaranteed to be delivered. It is not known
whether the fetus in the belly of a one-humped
camel is male or female, whether it will be born
healthy or die, and if it is born healthy, whether it
will calve or not - all this does not matter.
Therefore, such sales are abolished. This type of
trade existed during the period of Jahiliya, and the
Messenger of Allah (peace and blessings of Allah be
upon him) put an end to it. [3, 145].
Key Characteristics of Islamic Fintech
Islamic Fintech (financial technology) is a set of
modern financial technologies based on the
principles of Islamic finance. It combines
traditional financial services with innovative
technologies, offering financial products and
Volume 05 Issue 04-2025
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VOLUME
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OCLC
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services that are compliant with Shariah. This
technology is of interest not only to Muslim
communities but also to a wider audience
interested in a transparent and fair financial
system. Below are some key points explaining all
the characteristics of Islamic Fintech and its place
in the global financial system.
Compliance with the principles of Sharia
The Islamic financial system is based on Shariah
rules and is based on the following basic principles:
Riba (percent). Interest is prohibited. Partnership
or asset-based financial models are used instead.
Gharar (uncertainty). Trade agreements should be
clear and transparent to reduce uncertainty and
risk.
Avoiding dirty areas. Gambling, alcohol, tobacco
production or sale, prostitution, gaming, and
investments in non-halal sectors are prohibited.
Islamic financial products
The following financial instruments and services
are offered based on Islamic fintech technologies:
Musharaka (partnership). A partnership in which
two or more parties pool their funds and share
profits and losses.
Murabaha. This is a purchase and sale agreement in
which property is sold to a buyer at a fixed price,
the profit from which is clearly stated.
Rent. Lease agreements that involve the provision
of an asset for temporary use.
Zakat and charity platforms. Specialized systems
for charity and social financing.
Using modern technologies
Islamic fintech uses blockchain, artificial
intelligence,
smart
contracts
and
other
technologies. These technologies will increase the
transparency and efficiency of financial services:
Blockchain. This ensures the transparency and
immutability of transactions.
Smart contracts. Self-executing contracts can be
Shariah-compliant.
Financial apps. Provides access to services via
mobile devices.
Interest-free financing
Instead of interest-based lending, traditional
financing uses asset-based or partnership-based
financial mechanisms. For example:
Lease instead of credit. The client exercises the
right to use the asset through lease payments.
Investment. Investments in assets or projects are
made through direct partnerships.
Ensuring social justice
One of the important aspects of Islamic finance is
the pursuit of social justice. Islamic fintech
technologies allow: efficient distribution of
charitable funds, such as zakat and other
donations; promotion of sustainable development
and social welfare; provision of microfinance
services to low-income groups of the population.
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Risk management and allocation
Risk is shared on the basis of partnership. For
example: In Musharaka: Each party shares the
profit and loss according to its share. In commercial
contracts: Risk is fairly shared between the parties.
Legal control and certification
Islamic fintech projects are certified by Shariah
boards. This ensures that products and services
comply with Islamic law.
The advantages of Islamic FinTech projects
Transparency
: Ensures the transparency of
transactions through blockchain and other
technologies [1, Surah Al-Baqarah 282].
Interest-Free Investments
: Suitable for a wide
audience,
including
Muslims
and
those
uninterested in traditional finance.
Socially Beneficial
: Aims for sustainable
development and social welfare.
Inclusivity
: Provides access to financial services
for individuals outside the banking system.
Examples of Islamic Fintech
Blockchain-based Zakat platforms. Transparent
and fast distribution of Zakat funds. Crowdfunding.
Islamic fintech platforms allow crowdfunding of
Halal business projects. For example, many
projects are funded through the Ethis Group
platform. Islamic loan applications. Special mobile
applications for interest-free financial services.
Digital insurance (Takaful). Digital insurance
systems are an Islamic alternative to traditional
insurance, offering insurance services on a Halal
basis.
ْسَكْلا ِةَقَدَص ُباَب
ْنِم اوُقِفْنَأ اوُنَمآ َنيِذَّلا اَهُّيَأ اَي{ ىَلاَعَت ِهِل ْوَقِل ِة َراَجِ تلا َو ِب
}ٌديِمَح ٌّيِنَغ َ َّللَّا َّنَأ ِهِل ْوَق ىَلِإ ْمُتْبَسَك اَم ِتاَبِ يَط
“O you who believe! Give of whatever you have,
lawful and good, and of what We have grown for
you on earth. And do not choose in charity that
which you would not accept, even if you were blind.
And remember that Allah is Generous in all wealth,
Praiseworthy.” [1, 2 surah, 267
-ayah).
َس اَنَثَّدَح ُةَبْعُش اَنَثَّدَح َميِها َرْبِإ ُنْب ُمِلْسُم اَنَثَّدَح
ْنَع ِهيِبَأ ْنَع َةَد ْرُب يِبَأ ُنْب ُديِع
اَي اوُلاَقَف ٌةَقَدَص ٍمِلْسُم ِ لُك ىَلَع َلاَق َمَّلَس َو ِهْيَلَع ُ َّللَّا ىَّلَص ِ يِبَّنلا ْنَع ِهِ دَج
َف اوُلاَق ُقَّدَصَتَي َو ُهَسْفَن ُعَفْنَيَف ِهِدَيِب ُلَمْعَي َلاَق ْد ِجَي ْمَل ْنَمَف ِ َّللَّا َّيِبَن
ْد ِجَي ْمَل ْنِإ
ِفو ُرْعَمْلاِب ْلَمْعَيْلَف َلاَق ْد ِجَي ْمَل ْنِإَف اوُلاَق َفوُهْلَمْلا ِةَجاَحْلا اَذ ُنيِعُي َلاَق
ٌةَقَدَص ُهَل اَهَّنِإَف ِ رَّشلا ْنَع ْكِسْمُيْل َو
(Sa'id ibn Abi Burda narrated from his father and
grandfather that the Prophet (peace and blessings
of Allaah be upon him) said: Every Muslim is
obliged to give charity. They said: O Prophet of
Allaah, what about the one who does not have the
means? He said: He works with his hands, thereby
benefiting himself and giving charity. He said: What
if he cannot find the means? He said: He helps a
needy person who has a problem. He said: What if
he cannot find the means? He said: Then let him do
good and refrain from evil, for this is charity for
him.) [2, 352].
Islamic Payment Systems. Electronic payment
systems such as PayHalal enable Sharia-compliant
transactions in trade and services.
Web3 and Blockchain Technologies. Transactions
are transparent and secure thanks to the
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blockchain. Islamic financial tokens are also one of
the new trends in this area.
Limitations and Challenges
Lack
of
development
of
technological
infrastructure. In some Islamic countries, the
infrastructure for the implementation of digital
technologies is insufficient.
Legal issues. Laws and regulations applicable to
Islamic finance are not equally developed in every
country.
Not known to the general public. Insufficient
dissemination of information about Islamic fintech
services.
Advantages of Digital Islamic Finance
Transparency
and
reliability.
Blockchain
technology makes transactions transparent and
secure.
Convenience and access to the global market.
Access to global services through a digital platform.
Economic justice. The poor will be given access to
financial services.
Islamic FinTech Today
Currently, the Islamic fintech industry is actively
developing in the following areas:
Payment and financing platforms: Sharia-
compliant mobile payment and crowdfunding
platforms.
Smart contracts: automated transactions based on
blockchain technology.
Intelligence and financial literacy: online platforms
and mobile apps for teaching Islamic finance.
Microfinance and inclusion: financing the poor
through Islamic microfinance platforms.
Technological opportunities and problems
Blockchain and decentralization. Blockchain
technology provides a secure and transparent
solution for Shariah compliance.
Islamic standards. There are difficulties in
implementing uniform standards around the
world.
Integration issues. There is a need to ensure
compatibility between traditional financial
institutions and Islamic fintech companies.
Prospects of Islamic FinTech
Globalization: Islamic finance is expected to be in
high demand not only among the Muslim
population but also in the global market.
Green Finance: Islamic fintech companies can
contribute to the green economy by developing
eco-friendly financial solutions.
Automation of payments: New automated
platforms will be created based on artificial
intelligence (AI).
Financial Inclusion: Expanding opportunities for
the underprivileged.
C
ONCLUSION
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Islamic Fintech is an innovative form of modern
financial system that is Shariah compliant and
ensures that financial transactions are conducted
in a fair, transparent and user-friendly manner. The
rapid development of modern digital technologies,
in particular blockchain, artificial intelligence and
digital payment platforms, further expands the
possibilities of this field. The basic principles of
Islamic finance, including the prohibition of riba
and gharar, the basis of real assets and the
principles of fair partnership, serve as the basis for
creating sustainable and inclusive mechanisms not
only for the Muslim population but also for the
global financial system. Islam also supports efforts
to ensure financial inclusion in the global Fintech
market. To facilitate access to financial services
through microfinance and the capabilities of digital
platforms for the poor and excluded from the
financial system. This will help ensure social
equality and economic stability. Promising areas of
development of Islamic Fintech technologies
include:
Global Integration: Harmonization of Islamic
finance with the global financial system will be
ensured by developing uniform Sharia standards
and regulations on a global scale.
Green Economy: Development of financial
products and services in line with the principles of
environmental
sustainability
creates
new
opportunities for Islamic fintech companies.
Technological Innovation: Using the capabilities of
automation,
artificial
intelligence
and
a
decentralized platform, the efficiency and
reliability of the Islamic financial system will be
increased.
Inclusive
Development:
Promotes
social
development by ensuring financial inclusion in the
world, including meeting the demand for financial
services in developing countries.
Thus, Islamic fintech has great potential not only as
a Sharia-compliant financial system, but also as a
financial innovation that embodies universal
human values such as sustainability, fairness, and
inclusiveness. The development of this sector can
serve to enrich the modern financial system with
new tools not only for the Muslim community, but
for all of humanity.
R
EFERENCES
1.
Sheikh
Abdulaziz
Mansur's
Quranic
commentary.
–
Tashkent State Islamic
University
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Tashkent: Hilol-nashr, 2016.
3.
Golden series. 3rd half. Sahih al-Bukhari.
–
Tashkent: Hilol-nashr, 2013.
4.
Iqbal, Z., & Mirakhor, A. (2011). An Introduction
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5.
Cizakca, M. (2011). Islamic Capitalism and
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6.
Espinoza, R., & Prasad, A. (2017). Fintech and
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7.
Islamic FinTech Alliance (2023). Global Islamic
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(ISSN
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