An Ethical Compass for the Digital Frontier: Sharīʿah Governance in Fintech Micro and Nano Financing

Abstract

The rapid integration of Fintech into the Islamic financial landscape, particularly in the
realm of Micro and Nano Financing, presents a duality of opportunity and challenge. On
one hand, technology promises enhanced reach, efficiency, and potentially easier
mechanisms for adhering to Sharīʿah principles , thereby driving financial inclusion within
Muslim communities. However, this digital evolution highlights a critical need for a robust,
Sharīʿah-based governance framework to navigate the complex ethical issues inherent in
these schemes. The role of Sharīʿah governance in Fintech-based Micro and Nano
Financing services offered by Islamic Financial Institutions (IFIs) is not merely
supplementary; it is absolutely critical for ensuring these services remain true to the spirit
and letter of Islamic law and serve the broader interests of society