Islamic fintech and ESG goals: Key considerations for fulfilling maqasid principles

This paper aims to outline the critical elements for successful deployment of technology to maximize the benefit as well as minimize the negative impacts of Islamic Fintech. Social welfare improvement and justice are cornerstone features of the Maqasid al-Sharia, or higher objectives of Islamic law. The paper will present an overview of literature, present relevant case studies and summarize the lessons from interviews conducted with three Islamic Fintech founders. This study concludes that by systematizing a robust theory of change linked to positive outcomes, utilizing objective impact measurement frameworks and instilling a risk management culture that is proactive about potential social harm, Fintech can enable the Islamic Finance industry to support positive social impact and minimize harm in support of the Maqasid.