Islamic Fintech share a similar definition with conventional Fintech, with one difference: the Shariah guidelines must be followed to the tee in Islamic Fintech. Specifically, the branch of Islamic law that deals with transactions in the economy must be followed.
If there is any clear evidence that any transactions that are performed that are against the rules of Shariah, then the Fintech is not considered Islamic or Halal. It is very important to note that when it comes to Halal status, there are no grey area, the transactions are either halal (permissible) or haram (forbidden).
Why Islamic Fintech?
Islamic Fintech is usefull in the digital delivery of Islamic Finance products to the consumers. This includes any Fintech that is developed that delivers unmet financial need to to fulfill financial inclusion objectives.
Also, the Islamic banking and finance (IBF) industry has reached more than 100 million customers worldwide in 2018. With the growing number of Muslims around the world, with almost 2 billion people, the potential market is much larger than that. Islamic Fintech can be used to further increase the market share of Islamic Finance.