Fintech Achieving Sustainable Development: The Side Perspective of Crowdfunding Platform (original) (raw)
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The Proceeding of ISIC 2016 Academic Conference, 2016
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Islamic crowdfunding is a crowdfunding platform designed to comply with Islamic principles, a collective effort to collect/raise funds to fund projects (including startups), provide financing for personal or business, and other needs through an internet platform following Islamic principles. As a country with the largest Muslim population globally, Indonesia sees this as an excellent opportunity to support its economic development. In this regard, the purpose of this article is to find out how the Islamic Crowdfunding opportunity is an alternative solution to Islamic funding in support of the Indonesian Islamic Economic Masterplan (MEKSI). Based on data from the Ministry of Finance (Kemenkeu) through the 5th Annual Islamic Finance Conference (AIFC), Islamic Fintech assets in Indonesia grew to reach 134 billion rupiahs in June 2021, representing 3 percent of total fintech assets in Indonesia. From this data, it can be interpreted that the opportunity for Islamic Crowdfunding, which i...
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Small and Medium Enterprises (SMEs) is taking role as the backbone for sustained economic growth, particularly in developing countries. However, SMEs might not easily get the financing from the banking institution due to the lack of financial history and collateral. Islamic crowdfunding has become a solution to deliver accessible financial services to the unbanked SMEs in the countries, especially in Indonesia. Islamic crowdfunding impacts the SMEs in regard to the ease of obtaining capital access, improving the welfare of SMEs, and creating growth for the national economy in the long-term. By using literature review, this study aims to show how the Islamic crowdfunding develops and how it affects the SMEs in Indonesia. The result shows that Islamic crowdfunding potentially benefits the SMEs in capital access, improving the welfare and economic growth.
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Islamic crowdfunding practices in Malaysia: a case study on Nusa Kapital
Asian Journal of Accounting Research
PurposeIslamic crowdfunding, an alternative way to finance social projects, is a new development in Malaysia. Little is known about its operation. This study aims to explore the practice of Nusa Kapital, the first Islamic crowdfunding platform in Malaysia.Design/methodology/approachThis study adopted a descriptive approach. The data was collected through document analysis and interviews with two officials of Nusa Kapital. The data gathered was analyzed through the thematic analysis technique.FindingsThis research discovered that Nusa Kapital was established considering the financing needs of the growing number of small medium enterprises (SMEs) in Malaysia. It uses the murabahah concept to make financing arrangements for entrepreneurs. Murabahah is a debt-based concept where the investors, instead of giving cash to the entrepreneurs, purchase an asset and sell it to them at a cost-plus profit. The Securities Commission Malaysia (SCM) regulates the crowdfunding operation of Nusa Kapi...
Asian Journal of Islamic Management (AJIM), 2020
This study aims to present and to test practically the concept of the Islamic donation-based crowdfunding platform model for providing the financing program of MSMEs in times of COVID-19 pandemic in Indonesia. Methodology: This study uses a conceptual and empirical approach. The primary data is collected through the online survey questionnaires and then the data are descriptively analyzed. Findings: This research finds that the concept of the Islamic donation-based crowdfunding platform model is expected to solve the existing problems due to the adverse impact of the Covid-19 pandemic on MSMEs in Indonesia. Also, the platform model will open the opportunity for more optimum and impactful utilization of Islamic charity donation funds from zakat, cash waqf, sadaqah, and the like. Besides, an empirical study finds the majority of respondents accepted the concept of the Islamic donation-based crowdfunding platform model. The platform model has the potential to optimize financing programs for MSMEs in times of the Covid-19 pandemic situation. Practical implications: The present study also has implications for government, zakat institution, waqf institution, and policymakers to realize the concept of the Islamic donation-based crowdfunding platform model into the real world. Originality: The study will contribute to the existing literature especially on the Islamic donation-based crowdfunding platform model as an alternative strategy to minimize the negative impact of the Covid-19 pandemic on MSMEs in Indonesia.
Use of Crowdfunding for Developing Social Enterprises: An Islamic Approach
International Journal of Business and Management
Crowd-funding is an open call to mass people through the internet for fund in the form of financial donation, lending, or in any other forms such as in exchange for a future product, service, or reward. The concept is relatively new but growing at a very high rate around the world. Companies are using it mostly for efficiency ground. This study is based on the argument that conventional crowd-funding models cannot be applicable exactly in the Islamic societies due to philosophical ground. In this paper, we have discussed crowd-funding models from Islamic perspectives for funding projects of social enterprise/social business in the Muslim societies with a view to ensure social equity and justice by removing many social problems like unemployment and poverty.