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19 ERA F. 1 (2018-2019)

handle is hein.journals/erafrum19 and id is 1 raw text is: ERA Forum (2018) 19:1-17 https://doi.org/10.1007/s12027-018-0505-8 CossMark Shariah-compliant FinTech in the banking industry Maria Todorof1 URsOPAISCHE neCHTEAKADEME ACADEMY OF EUROPEANo LAW! Published online: 5 April 2018 A °EN © ERA 2018 rEB*- Introduction To address Shariah and FinTech in the same breath may sound counterintuitive. Still, this article will question whether non-secular Islamic banking could coexist with and benefit from the disruptiveness of FinTech. To this end, an argument will be put for- ward that Shariah-compliant finance can absorb some of the incarnations of FinTech without the latter contradicting Shariah principles. Furthermore, it will be suggested that some financial innovations such as peer-to-peer (P2P) lending may have pro- foundly beneficial effects on users in a way which is particularly relevant to Mus- lims. In terms of structure, this paper will be divided in the following parts. Part One will briefly introduce the reader to the basics of Shariah finance law. This will be done by reference to Shariah's philosophical and religious underpinning. Part Two will compare the two types of banking. Part Three will look into what FinTech is and how it relates to modern banking, particularly conventional banking. Part Four will inform on the stage of implementation of FinTech in Islamic finance and will discuss Shariah-compliant P2P lending in more detail. Part Five will conclude that the intro- duction of FinTech in Islamic banking can increase its general competitiveness and inclusiveness by incorporating a greater number of products and services, lowering their existing price and closing the credit gap, existing in many Islamic countries. ] M. Todorof MTodorof@era.int 1 Trier, Germany '_ Springer