The potential of smart contracts for Murabahah home financing : towards an integrated model

The Islamic finance industry has witnessed an increasing interest in the FinTech wave. While progress has relatively been made in the areas of Robo-advisory, sandbox, payment system and investment, among others, the applications of these Islamic finance FinTech business models have been in isolation. They lack the depth of using the power of FinTech to harness their relationships. Yet the literature remains silent on this important gap. This chapter tries to develop a Smart Contract model for the Islamic banking FinTech industry, using home financing as a case study. The study validates the model through interviews. The majority of experts opine that the model is viable and acceptable, and has great potential in future. The findings are expected to set a new research direction for integrated FinTech models that can be instrumental in further enhancing the efficiency of the Islamic banking and finance industry.