Islamic Fintek is the use of financial technology that strictly follows the core principles of Islamic finance and Shariah law. It’s not just about adding tech tools to existing systems. Instead, it reflects a deeper change—where financial innovation is reshaped to fit within ethical, legal, and religious boundaries.

Several key rules guide how Islamic Fintek works. It avoids interest (riba), high uncertainty (gharar), and speculative behavior (maysir). Products and platforms are built around these restrictions. Instead of earning interest, Islamic Fintek supports models like profit-and-loss sharing and financing based on tangible assets. These models form the foundation for its financial activities.

But it doesn’t stop at avoiding what’s forbidden. Increasingly, Islamic Fintek is developed with the broader goals of Islamic law in mind (maqasid al-shariah). This means focusing on social justice, including more people in the financial system, and promoting ethical outcomes.

Modern tools—such as blockchain, AI, smart contracts, and data analytics—are being used alongside Islamic financial instruments like murabaha, mudaraba, musharaka, and sukuk. The aim is to make financial services more efficient without losing sight of Islamic values.

There are also clear differences from conventional Fintek. Islamic Fintek uses ethical screening, digitizes tools for social finance, builds trust based on religious alignment, and operates under Shariah governance. These elements combine to make it a unique and growing area where technology, finance, and faith-based rules meet.