Analysis of Islamic Legal Study on Financial Technology Transactions: Maqashid Sharia Perspective

Abstract

This paper discussed the impact of digital technology on various economic activities, particularly on the financial sector, which led to the emergence of Fintech. Indonesia was seen as having significant potential for Fintech development due to its geography, growing middle class, and underdeveloped financial product market. The research utilized a descriptive and qualitative literature review approach to analyze the development of Fintech in Indonesia through the lens of Maqashid Sharia. The research analyzed the need for Fintech compliance with Islamic commercial law, which excluded Maysir, Gharar, and Riba. The Maqashid Sharia approach was suggested as a way to ensure that Fintech adhered to Islamic principles. Fintech was described as the hybridization of technology with traditional financial services and explained that it gradually replaced incumbents with better and more efficient services. The importance of Fintech transactions being in compliance with Islamic law, which was based on the Quran and Hadith.