The Future of Global Finance and the Rise of Participation Finance in the digitization paradigm.
Why Islamic finAnce is at the forefront? Maan barazy Sharia Advisor AAOIFI Visionary entrepreneur The ongoing digital transformation is shaping the Islamic mode of financial intermediation and the impact on the faith-based financial mode has been multifaceted. This has raised a host of interesting questions: what is the degree of penetration of Islamic finance in the fintech industry? Are Islamic financial institutions (IFIs) or banks ready to embrace fintech? Is fintech an enabler or barrier to achieve the intended purpose of Islamic finance? Will technology narrow the division between Islamic and conventional finance in the future? These are existential questions for Islamic finance and the book endeavors to examine the impact of financial technology on the industry. t is interesting to note that the Muslim population is on average younger with a median age of 23 years across all regions, compared to a global average of around 2820. According to a study by Deloitte , Not only is the Muslim population’s median age lower than the MENA region’s median age of 24 years, but in each continent, the regional Muslim median age is also lower than the normal median age21. With such a young Muslim population, and the fact that young people tend to be technology literate, we would expect the younger Muslim audience to welcome and adopt new Digital Islamic solutions. Let’s look at the new paradigm of the industry . 1. Islamic finance has become part of the mainstream global financial markets, and accordingly needs to improve and simplify its operations. 2. The current complex money market operations used by Islamic banks is a manual process throughout the whole process, causing inefficiencies and weakness. As the Islamic finance industry has evolved, it has become part of the global financial markets. And as any other financial industry, the Islamic money market is considered a cornerstone component within this system. Consequently, it has become essential to simplify and advance its operations. With volatility becoming the new norm, Islamic banking is facing challenges that range from virtual working and the urgent need for technological solutions, to the complexity of the LIBOR transition and other expected regulatory requirements. These threats create operational risks for Islamic banks in their day-to-day activities and overall liquidity management. Currently, with the prohibition of interest-based transactions, the money market operations across Islamic banks and/or conventional banks trading Islamic finance products are currently complex procedures. These procedures include three-way counterparty agreements between liquidity providers, underlying commodity providing brokers and liquidity takers. This complex process is currently manually operated from ideation/RFQ stages all the way to clearance through multiple individuals, including traders, middle- and back-office staff, brokers and operations. Potentially one money market transaction can have up to seven different manual touchpoints of data entry and validation through four different platforms/systems. This causes inefficiencies and errors. On the plus side and looking at Shariaa Complaint DAOs Economies we do recognize the following areas of advancement and much needed research: 1. The world is witnessing a transformation in the global financial system, wealth transformation and power shifting. The current system's disregard for humane and moral values leads to increasing income and wealth inequalities and detachment from the real economy. 2. In response, the search for a new financial architecture that prioritises humane and moral values has gained momentum, intending to create a fairer world and promote social justice, inclusive growth, and sustainability. 3. Participation finance, with its participatory approach, focuses on moral and humane values, risk-sharing, and positive social impact and holds great promise for all of humanity. 4. Blockchain and its applications are leading in establishing a new financial architecture based on participation finance. 5. Value-based communities, with their rich cultural heritage, geopolitical position, economic size, and large population, are well-positioned to become global hubs for participation finance. 6. Integrating participation finance with alternative finance practices such as impact investing, socially responsible finance, and green finance can further bolster the growth of a participation finance hub. 7. Blockchain will play a critical role in the journey towards a new financial architecture that prioritises humane and moral values and positively impacts society. 8. Global organisations today face real, complex challenges that can’t be solved by generic solutions. That’s why the industry need to embrace co-creation and customisation as the foundation of Islamic finance solutions is inherent in the evolving need of communities. It is an Exciting transformative journey! Are we as scholars up to the challenge? #blockchain #finance #growth #sustainability #economy #investing #future #architecture #power #transformation -- Sender : Ma’an Barazy MA Philosophy – Jurisprudence / BS Economics President Founder National Council Of Entrepreneurship And Innovation \Entrepreneurs Ventures Network/ Data And Investment Consult Diplomas - · *Accredited EFT / TFT Master Practitioner Certification - * - · *Complimentary Therapists Accredited Association (CTAA) and The Priority Academy is Accredited as a Quality Distance Learning Provider also by the CTAA - Membership number: 10662322..* - *Certified Diploam Reuters Digital Journalism - Thomson Reuters Foundation* - · *Certificate in Business Neuromarketing Science* - · *Ultimate SEO, Social Media, & Digital Marketing Course 2022* - · *Entrepreneurship and Business Life Coach Certification* - · *Life Coach Certification Masterclass - Coaching Certificate* - · *Professional Certificate in Data Mining & Machine Learning* - · *Text Mining, Scraping and Sentiment Analysis with R-Tutorials Training* - · *VIP Digital Marketing Master Course* - · *UX Design - User Experience Design Fundamentals* - · *Microsoft Power BI Dashboards* - · *Training and Certificate in Blockchain Technology* -- -- You received this message because you are subscribed to the Google Groups "Kantakji Group" group. 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