AN AI-DRIVEN AND BLOCKCHAIN-BASED ISLAMIC CAPITAL MARKET

Hazik Mohamed

Chapter 2 in Beyond Fintech:Technology Applications for the Islamic Economy, 2020, pp 21-42 from World Scientific Publishing Co. Pte. Ltd.

Abstract: New innovative digital and advanced technologies are transforming the way we access and use existing financial products and services. Fintech is becoming disruptive more and more by the leveraging latest and advanced technologies such as blockchain, Cloud computing, Big Data analysis, Internet of Things (IoT), robo-advisors, and artificial intelligence (AI).This research discusses the crucial innovation, structural, and institutional development for financial technologies (fintech) in Islamic Finance. The blockchain proposes a new operational design, where all actors within the capital market sector can work from common ledgers, with collective data-sets in almost real-time, and supporting operations which are more streamlined. The system will also incorporate fraud-detection and compliance enhancements, where applicable.This chapter assesses the key features of the AI and blockchain architecture and protocol developments. It identifies areas where AI and blockchain can bring substantial transformational change, while at the same time, identify some of the major barriers to adoption within the capital markets. The AI + Blockchain model is envisioned execute to scale the complex levels of human activity, possibly even those that have yet to be imagined, which could further establish a truly risk-sharing and just economy.

Keywords: Ethics and Technology; Digital Transformation; Regional Development; Customer Behaviour; Evolution of FinTech; Global Landscape; Payments; Asset under Management; InsurTech; Investments; Cloud Computing; Big Data Analytics; Blockchain; Internet of Things (IoT); Robo Advisors; Artificial Intelligence; Machine Learning; Islamic Finance; Endowment; Intellectual Property; Fraud Detection; Risk Mitigation; Cost-Effective; Increased Productivity; Immutable; Know Your Client (KYC); Media Rights; Coordination; Efficiency; Consensus-building; Agility; Scalability; Innovation; Cybersecurity; Collaboration; Venture Capital; Enterprise Solutions; Era of Digitization; Digital Ecosystem; Disruptive Models; Market Insights; Predictive Analytics; Insurance; Takaful; Capital Markets; Distributed Ledgers (DLT); Wealth Management; Islamic Markets; Sharing Economy; Trust Mechanism; Open Platforms; Web and Mobile; Cloud Computing; Trades and Settlements; Regulatory Controls; User Defined; Institutional Economics; Cryptocurrency (Tokens); Public Registries; Smart Contracts; Securities Clearing; Automation; Enforceability; Claims Processing (search for similar items in EconPapers)
JEL-codes: G1 G11 G2 O3 O32 (search for similar items in EconPapers)
Date: 2020
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