Analysis
Technology appears poised to accelerate Islamic finance's growth in the U.S. Digital platforms can streamline the complex stages of murabaha or diminishing musharaka transactions, automating compliance checks through smart contracts or blockchain. Robo-advisors can handle Shariah screening for mutual funds, cutting entrance barriers for smaller retail investors. More intensive web marketing could debunk misunderstandings, demonstrating that Islamic banking can serve diverse audiences including non-Muslims seeking transparent, tangible investments. Technology-based solutions such as robo-advisors that automatically screen stocks and blockchain platforms that permit transparent contract execution may lessen adoption hurdles. Such advancements could help Islamic banking shed the perception of complexity, enabling expansion and cost reduction. The combination of ethical imperatives and financial innovation underpins the U.S. Islamic finance growth story.
Key Takeaways
- 1Smart contracts/blockchain can automate Shariah compliance checks in complex transactions like musharaka
- 2Robo-advisors can democratize Shariah-screened investing for smaller retail investors
- 3Digital platforms can simplify multi-step Islamic financing processes (murabaha, musharaka)
- 4Web/digital marketing can address misconceptions and broaden Islamic finance's audience
- 5Technology can help Islamic finance shed its perception of complexity
U.S. Market Relevance
Content angle for fintech/innovation articles. Positions HalalWallet itself as part of this digital transformation narrative.
Citation
Mohammad Kabir Hassan, Mohammad Rezoanul Hoque, Mustafa Raza Rabbani. Hassan et al. (2025) - AQU Journal of Islamic Economics, Vol. 5 No. 2 (2025).
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