ROLE OF FINTECH IMPLEMENTATION IN WAQF MANAGEMENT FOR SUSTAINABILITY OF SOCIO-ECONOMIC DEVELOPMENT IN MALAYSIA

Abstract

Fintech is a technological innovation of the present day, which is responsible for the Waqf management being quite efficient, thus making the Waqf property not only keeping up with the current technological but also developing sustainably and contributing to the society economically. Creative management of Waqf requires strict adherence to the global technology trends. The unification of Fintech with Waqf management in Malaysia is going to be a turning point for the Waqf institutions in terms of the number of their participants Waqifs (donors). Malaysia, being one of the most technologically advanced Muslim countries is a perfect place to use Fintech as a tool for the upliftment of Waqf institutions.

The present research intends to examine the role of Fintech in the management of Waqf and its power to bring about social and economic development, with an emphasis on Malaysia. The adoption of Fintech into the management of Waqf in Malaysia is vital for the country's socio-economic development, the continuous operation of Waqf institutions, poverty reduction, and improvement of social welfare. The research utilizes a qualitative method to investigate the use of Fintech, robot-advisors, and robotic receptionists in Waqf management according to Islamic law. It is believed that this will lead to increased participation in Waqf institutions.

Besides that, the research looks into the question of whether or not the application of Fintech in the management of Waqf is valid according to Islamic law and the modern approach of Maqasid al-Shari’ah (the higher goals of Islamic law). The results indicate that the use of Fintech is pretty much capable of improving Waqf management to a great extent and therefore it could be one of the main drivers of Malaysia’s socioeconomic sustainability, which is why its implementation is necessary for the purpose of financial inclusion attainment. Fintech in Waqf administration can completely change the situation of Waqf beneficiaries, while at the same time it would be the Waqf institutions' sustainability building and the donors' participation widening. Now, in order to have clearer picture regarding the role of Fintech in Waqf management and its effects on the economic and social development and poverty alleviation in Malaysia, the research is suggesting doing more quantitative studies on this matter.