IDEAS home Printed from https://ideas.repec.org/h/pal/pcichp/978-3-031-13302-2_11.html
   My bibliography  Save this book chapter

Digital Finance and Artificial Intelligence: Islamic Finance Challenges and Prospects

In: Islamic Finance, FinTech, and the Road to Sustainability

Author

Listed:
  • Dawood Ashraf

    (Islamic Development Bank Group)

Abstract

Access to finance matters for development, especially for the microentrepreneurs. The microfinance movement is applauded for its role in helping small businesses to grow. However, experience with conventional microfinance has been mixed in terms of capital building for microentrepreneurs. There is tremendous growth in providing access to finance to the bottom of the pyramid. The use of artificial intelligence and big data has helped fast-track the process, and now more people have access to finances than ever before. While interest-based finance has encouraged some economic growth, it has tremendously overindebted the microentrepreneurs without a corresponding growth in capital. It failed to address many socio-economic issues fully and very often increased systemic instability. In contrast, Islamic finance holds the promise against these ills. Its design principles ensure stability and fairness, and its diversity of products can help increase financial inclusion. Its diversity of applications across three paralleled public, private, and voluntary sector channels can ensure a more robust and consistent impact on economic growth and development. The present chapter highlights the importance of artificial intelligence as a critical infrastructure to facilitate financial inclusion using the Islamic finance framework.

Suggested Citation

  • Dawood Ashraf, 2023. "Digital Finance and Artificial Intelligence: Islamic Finance Challenges and Prospects," Palgrave CIBFR Studies in Islamic Finance, in: Zul Hakim Jumat & Saqib Hafiz Khateeb & Syed Nazim Ali (ed.), Islamic Finance, FinTech, and the Road to Sustainability, pages 241-258, Palgrave Macmillan.
  • Handle: RePEc:pal:pcichp:978-3-031-13302-2_11
    DOI: 10.1007/978-3-031-13302-2_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pcichp:978-3-031-13302-2_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.