How Islamic are the services offered by Islamic P2P financing fintech companies? An observation from Indonesia

Miranti Kartika Dewi, Wasila, Evony Silvino Violita and Sri Nurhayati

Chapter 12 in Islamic Finance in the Digital Age, 2024, pp 209-223 from Edward Elgar Publishing

Abstract: Peer-to-peer (P2P) financing is currently the most common service Islamic financial technology (Fintech) companies provide. By delivering technical assistance to connect the providers and users of capital, Islamic P2P financing companies play a strategic role in supporting initiatives to boost the suboptimal levels of financial inclusion in OIC countries, including Indonesia. Yet, how shariah-compliant are these companies’ services? This study addresses this question by applying a qualitative method based on document analysis and observation of several Indonesian Islamic P2P financing companies. The authors found that various Islamic P2P financing company practices have the potential to conflict with shariah provisions. By offering actionable solutions to assist Islamic P2P financing practitioners in handling this concern, it is hoped that this study contributes to examining how shariah principles can be applied in the operation of Islamic P2P financing companies and yield practical implications for the relevant practitioners.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035322954.00022 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22863_12

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().