Developments in fintech can significantly contribute to growth in the annual financial value of zakat, in addition to voluntary giving such as sadaqah donations and waqf endowments, according to a survey from IsalmicMarkets.com.
The research conducted among Islamic fintech professionals revealed that 84% of respondents believe that the annual financial value of zakat, as well as voluntary giving such as sadaqah donations and waqf endowments will increase over the next five years, with 33% expecting a dramatic increase.
IslamicMarkets.com provides access to expert knowledge and financial opportunities, to support the Global Islamic Finance Forum 2022 (GIFF2022), 5-6 October in Kuala Lumpur.
The survey identified growth of fintech firms and digitalisation of financial services as the key contributor to expansion of voluntary giving ahead of improved transparency around zakat, sadaqah and waqf.
“Digitalisation and the rise of fintechs are central to the expansion of Islamic finance, but as the research shows, it can also benefit zakat and voluntary giving in general,” GIFF2022 Chairman Arsalaan Ahmed said.
“Technology is transforming all our lives and will have a major impact on Islamic finance over the next five years by increasing transparency and making voluntary giving easier,” he added.
(Writing by Seban Scaria; editing by Daniel Luiz)