Fintech growth encourages zakat, voluntary giving

by AKMAR ANNUAR / pic BERNAMA

EIGHTY-FOUR percent of Islamic finance professionals believe that the annual financial value of zakat — as well as voluntary giving such as donations and endowments — will increase by 33% over the next five years, IslamicMarkets.com’s research found. 

The research involved 346 leading Islamic finance professionals working across sectors including banking, insurance, asset management, asset ownership, private equity, regulation and financial technologies (fintech). 

Global Islamic Finance Forum 2022 (GIFF 2022) chairman Arsalaan Ahmed said digitalisation and the rise of fintech are central to the expansion of Islamic finance. 

“As the research shows, it can also benefit zakat and voluntary giving in general. 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 said in a statement recently. 

Interestingly, the study identified the growth of fintech firms and digitalisation of financial services as the key contributor to the expansion of voluntary giving ahead of improved transparency around zakat, sadaqah and waqf. 

It was highlighted that advances in technology can make it easier to identify relevant charitable projects and also as another factor in the growth of middle classes in Muslim- majority countries for the next five years. 

IslamicMarkets.com is a platform that provides access to expert knowledge and financial opportunities. It supported GIFF 2022 which was held on Oct 5-6, 2022, in Kuala Lumpur. 


  • This article first appeared in The Malaysian Reserve weekly print edition