Abstract
Waqf financing through crowdfunding becomes an attractive instrument in Islamic social finance today. Crowdfunding offers a solution to the capital problem in developing waqf assets by using the concept of raising funds through social media and internet users. This chapter will describe how waqf crowdfunding also can be a tool for financing the micro small medium enterprises (MSMEs). In the digital era, the impact of waqf on people in need could be greater with crowdfunding, where waqif is not limited by geographical barriers. Waqf crowdfunding becomes a marketplace platform to increase financial inclusion through collaboration between Islamic social finance and technology. There are some platforms of waqf crowdfunding in the Association of Southeast Asian Nations (ASEAN) that will be described in this chapter (i.e., Indonesia, Malaysia, and Singapore).
TopWaqf And Crowdfunding Towards Waqf Crowdfunding
There are several categorize of fintech. Fauzia (2020) divides into three categorizations:
First, the fintech payment gateway. Fintech here is related to payments made practically, safely, quickly, and comfortably, making it easier for users by cashless. It can be done to support transactions on e-commerce or application-based business transactions.
Second, fintech peer to peer (P2P) lending, namely fintech activities related to activities in which creditors and debtors practice lending and borrowing without physical meeting or face to face.
Third, fintech crowdfunding, namely the activities in which a number of fund owners will finance a project or business someone, or a charity related to zakat, infaq, shadaqa or waqf. With the fundraising activities carried out by the crowdfunding technology company, the company will be able to channel it properly and in accordance with the contract conducted at the beginning.
Actually, there are still other types of fintech, for example, fintech in the field of planning and management of household finances and SMEs, there are also those related to fintech aggregators, such as data providers for academic fields and so on.
Key Terms in this Chapter
Financial Technology (FinTech): A software-based business and modern technology that provides financial services. It usually provides us with financial services and solutions to customers such as money transfers, loans, fundraising, asset management and so forth; New technology that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.