Cover Image

A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs

The emergence of financial technology, known as fintech, has altered the landscape of traditional financial institutions. Broadly defined, fintech is the application of technology in finance. Conventional and Islamic crowdfunding platforms are fintech innovations that offer a great alternative to tr...

Full description

Saved in:
Bibliographic Details
Main Authors: Nordin, Norhafiza, Zainuddin, Zaemah
Format: Article
Language:English
Published: UUM Press 2023
Subjects:
HF Commerce
Online Access:https://repo.uum.edu.my/id/eprint/29697/1/IJIB%2008%2001%202023%2079-90.pdf
https://doi.org/10.32890/ijib2023.8.1.5
https://repo.uum.edu.my/id/eprint/29697/
https://e-journal.uum.edu.my/index.php/ijib/article/view/19544
https://doi.org/10.32890/ijib2023.8.1.5
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.29697
record_format eprints
spelling my.uum.repo.296972023-08-20T09:31:34Z https://repo.uum.edu.my/id/eprint/29697/ A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs Nordin, Norhafiza Zainuddin, Zaemah HF Commerce The emergence of financial technology, known as fintech, has altered the landscape of traditional financial institutions. Broadly defined, fintech is the application of technology in finance. Conventional and Islamic crowdfunding platforms are fintech innovations that offer a great alternative to traditional financial lenders like banks. This paper aims to provide insights regarding crowdfunding as an alternative fundraising source for entrepreneurs, especially start-ups, who usually face financial challenges. This paper uses a desk research methodology to review the extant literature on crowdfunding as an entrepreneur's funding source. Findings show that crowdfunding adoption is rapidly increasing and is embraced by many underserved entrepreneurs. As a promising alternative, it offers excellent potential by providing services at a lower transaction cost and greater efficiency. It also covers a broader market penetration. Islamic crowdfunding benefits even more, as the nature of Islamic financing helps to curb excessive credit expansion, thus helping to stabilise the economy. The application and importance of Islamic crowdfunding are in line with the three classes of Maqasid-Shariah, which are darūrāt (necessities), ḥājīyāt (needs), and taḥsīnīyāt (luxuries). Nevertheless, crowdfunding is not without problems and challenges. Major problems usually arise from regulatory and fraud issues, such as stolen ideas and lack of proper regulations. This paper may help create awareness about crowdfunding, its potential, and its challenges to entrepreneurs. The findings may also serve as reference points for future researchers to examine further the issues and challenges in the crowdfunding industry, especially Islamic crowdfunding, in promoting competency and sustainability for entrepreneurs' interests. UUM Press 2023 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29697/1/IJIB%2008%2001%202023%2079-90.pdf Nordin, Norhafiza and Zainuddin, Zaemah (2023) A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs. International Journal of Islamic Business (IJIB), 8 (1). pp. 79-90. ISSN 0127-662X https://e-journal.uum.edu.my/index.php/ijib/article/view/19544 https://doi.org/10.32890/ijib2023.8.1.5 https://doi.org/10.32890/ijib2023.8.1.5
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HF Commerce
spellingShingle HF Commerce
Nordin, Norhafiza
Zainuddin, Zaemah
A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
description The emergence of financial technology, known as fintech, has altered the landscape of traditional financial institutions. Broadly defined, fintech is the application of technology in finance. Conventional and Islamic crowdfunding platforms are fintech innovations that offer a great alternative to traditional financial lenders like banks. This paper aims to provide insights regarding crowdfunding as an alternative fundraising source for entrepreneurs, especially start-ups, who usually face financial challenges. This paper uses a desk research methodology to review the extant literature on crowdfunding as an entrepreneur's funding source. Findings show that crowdfunding adoption is rapidly increasing and is embraced by many underserved entrepreneurs. As a promising alternative, it offers excellent potential by providing services at a lower transaction cost and greater efficiency. It also covers a broader market penetration. Islamic crowdfunding benefits even more, as the nature of Islamic financing helps to curb excessive credit expansion, thus helping to stabilise the economy. The application and importance of Islamic crowdfunding are in line with the three classes of Maqasid-Shariah, which are darūrāt (necessities), ḥājīyāt (needs), and taḥsīnīyāt (luxuries). Nevertheless, crowdfunding is not without problems and challenges. Major problems usually arise from regulatory and fraud issues, such as stolen ideas and lack of proper regulations. This paper may help create awareness about crowdfunding, its potential, and its challenges to entrepreneurs. The findings may also serve as reference points for future researchers to examine further the issues and challenges in the crowdfunding industry, especially Islamic crowdfunding, in promoting competency and sustainability for entrepreneurs' interests.
format Article
author Nordin, Norhafiza
Zainuddin, Zaemah
author_facet Nordin, Norhafiza
Zainuddin, Zaemah
author_sort Nordin, Norhafiza
title A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
title_short A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
title_full A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
title_fullStr A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
title_full_unstemmed A Review of a Fintech Financing Platform: Potential and Challenges of Islamic Crowdfunding to Entrepreneurs
title_sort review of a fintech financing platform: potential and challenges of islamic crowdfunding to entrepreneurs
publisher UUM Press
publishDate 2023
url https://repo.uum.edu.my/id/eprint/29697/1/IJIB%2008%2001%202023%2079-90.pdf
https://doi.org/10.32890/ijib2023.8.1.5
https://repo.uum.edu.my/id/eprint/29697/
https://e-journal.uum.edu.my/index.php/ijib/article/view/19544
https://doi.org/10.32890/ijib2023.8.1.5
_version_ 1775625719116726272
score 13.211869

Similar Items