THE EXISTENCE OF NATURAL SHARIA FINANCIAL
TECHNOLOGY (FINTECH) IN CROWDFUNDING FINANCING
Introduction
Millennials and Generation Z have changed the way people pay for goods and send
money, borrowing funds, to how to manage investments using modern technology that is
more efficient, effective and has a higher level of convenience. Of course This digital
development is supported by advances in hardware and internet networks that are
increasingly sophisticated and fast1 .
A groundbreaking synergy is currently being created by the collaboration of finance and
technology, one proof of which is the easy and fast transfer of assets. This is according to
financial experts and academics to be able to review more deeply by reviewing the old
textbooks of financial experts and adjusting them to all current policies. The presence of
fintech in particular needs more attention for experts in developing its ecosystem, in 2018 at
the IMF-World Bank annual meeting in Bali produced a declaration in the form of the Bali
Fintech Agenda. This Bali fintech agenda provides a reference to the community at 12
specific points to get a review in building a special fintech environment that is full of
benefits. The agenda formulates several things including2 : First, mapping the benefits of the
presence of fintech in the community; Second, improving financial services from the
technology space; Third, creating a spirit of competition and commitment to the market;
Fourth, supporting financial inclusion and financial market development; Fifth, monitoring
the development of an evolving system; Sixth, adapting the regulatory framework and
supervision of the financial system; Seventh, maintaining financial integrity; Eighth,
renewing legal frameworks in the provision of legal landscapes; Ninth, stability and monetary
control; Tenth, infrastructure development as a form of safeguarding the benefits of fintech
eleventh, collective financial sector risk monitoring; twelfth, internal coordination in the form
of information and cooperation.
Technology is a key driver in the 21st century, this happens because of the rapid
development of technology both in the innovation, adaptation and implementation phases.
This technological development is also characterized by the birth of fintech as a phenomenon
of new financial products and services. The continued increase in licensed fintech companies
is evidence of the rapid development of the fintech business in United States3 .
One factor that has an important role in the economic growth of a country is financial
services, which are now being developed in order to create jobs for the poor with the
realization of the MSME sector. The existence of MSMEs in United States has proven to be
able to take a role in economic problems in the form of reducing unemployment, reducing the
income distribution gap to improving the welfare of the community4 . The main principle in
the teachings of Islam, namely as a religious teaching that is Rahmatan lil 'Alamin, Islam
views that all humans are equal before Allah SWT, so that it becomes a unity and
brotherhood5 .
The role of information technology helps financial services to innovate serving the
community, especially with the presence of fintech. Bank United States defines Financial
Technology as a collaboration of technology and financial services that provides significant
changes to the business system from conventional to moderate with changes in transaction
mechanisms6 .
United States as a Muslim-majority country shows that the state of Islamic law in
various aspects is a demand for community life, including Islamic financial transactions
which are a great hope for Muslims. The presence of sharia fintech is a breath of fresh air for
Muslim communities in United States in particular, especially with the award obtained by
Fintech Alami Sharia at the Global Islamic Finance Award in October 2022, which seems to
be a gateway to world recognition that Islamic finance via fintech in United States shows its
existence in serving the wider community with its various innovations and the most
prominent is crowdfunding financing for MSMEs in United States.
The revolution of Islamic financial institutions in technology is a must due to the
development of technology and information. This development is expected to facilitate
Islamic financial institutions in providing operational services. Collaboration with financial
technology (fintech) is a good thing in its development. Fintech, which was originally a rival,
has changed its paradigm to become a partner. This is a phenomenon why the revolution in
technology and fintech collaboration is very important, so that Islamic financial institutions
are aware of these developments. And in tandem with Facilitating institutions socialize and
regulate related technology and fintech7 .
The rapid development of information technology has resulted in the transformation of
human life activities in various fields. The presence of technology is becoming increasingly
important and forces us to always act quickly, practically, effectively and efficiently,
especially in carrying out the transaction process. The need for this transaction process is then
responded to by companies and service providers by providing services for easy access to
information and easy relationships between providers of goods and services and consumers
through the application of modern information technology-based applications.
Fintech is one of the innovations in the field of financial services that converts paper
currency into digital to make it more efficient9 . Fintech has also attracted players in the
world of economic and financial transactions based on sharia principles with the emergence
of a new breakthrough called sharia fintech. Sharia fintech in United States has attracted the
public and the government with the issuance of a fatwa by the National Sharia Council of the
United States Ulema Council (DSN-MUI) number 117/DSN-MUI/II/2018 on information
technology-based financing services based on sharia principles and the establishment of the
United States Sharia Fintech Association (AFSI). In the community itself, there is an
assumption that sharia fintech and fintech Conventionally both have the same
characteristics10 .
In general, Fintech (financial technology) is a technological innovation in financial
transaction services. Meanwhile, according to Bank United States regulation No.
19/12/PBI/2017 on the implementation of financial technology, financial technology is the
use of technology in the financial system that produces new products, technology services, or
business models and can have an impact on monetary stability, financial system stability and
efficiency, smoothness, security and payment system constraints.
While the definition of sharia fintech is a combination or combination of innovations
between finance and technology in the process of financial services and investment based on
sharia values12 . According to the regulation or Fatwa of the National Sharia Council-Majelis
Ulama United States (DSN-MUI) No. Sharia: 117/DSN- MUI/II/2018 concerning Financing
Services Based on Information Technology Based on Sharia Principles, what is meant by
sharia fintech services is the implementation of financial services based on sharia principles
which are Previous research as presented by Suharmanto et. al.,13 shows that Alami Sharia's
position is still behind its competitors, so Alami Sharia must take the initiative to create
products that are different from incumbents (banks and fintechs) and collaborate with startups
and other parties to create greater market opportunities. Furthermore, Thalis Noor Cahyadi14
explains that the use of digital signatures is one of the innovations in Islamic fintech services
to be more efficient and effective. As for Trimulato et., al.,15 explained in his research that
Islamic Fintech is still relatively new, so the opportunity to develop is still open.
Based on the background explanation, this paper intends to examine more deeply the
existence of Fintech Alami Sharia in crowdfunding financing so as to make it the world's
most innovative Islamic fintech in 2023.
Results and Discussion
The financial system experiences continuous development along with the development
and growth of human civilization. The financial system is one of the economic activities, as
well as other scientific fields that are studied in depth by Islam with the aim that mankind
walks on the right path. State supervision and in the Islamic economic system is the main
milestone that oversees it even most of the savings are collectively for the welfare of
society18 .
United States with the largest Muslim majority country formed the Bank as a financial
operational system based on Islamic law, according to Suhrawardi Islamic Bank is a bank
with an operational system based on Sharia principles, which in its application uses Islamic
Bank entias. With various designations of the Bank without Riba (Lariba), Bank Without
Interest (Interest-Free Bank) and Sharia Bank (Shari`a Bank). The juridical designation of the
Islamic Bank used in United States is "Bank Syariah"19 .
Article 1 of Law Number 10 of 1998 amending Basic Law Number 7 of 1992
concerning banking that the existence of banks aims to support the implementation of
development national in order to increase equity, economic growth and national stability
towards improving the standard of living of the people. Point 13 limits the definition of sharia
principles as the rules of agreement based on Islamic Law between banks and other parties
for depositing funds and financing business activities, or other activities that are stated to be
in accordance with sharia, including financing based on profit sharing principles
(mudharabah), financing based on the principle of equity participation (musyarakah), the
principle of buying and selling goods with profit (murabahah) or financing capital goods
based on the principle of pure lease without choice (ijarah), or with the option of transferring
ownership of goods leased from the bank by other parties (ijaarah wa iqtina)20 .
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
Definition and Scope of Financial Technology (Fintech)
Financial Technology is one proof of progress in today's financial institutions, derived
from the term Financial Technology or FInansial technology, which according to The
National Digital Research Center (NDRC), fintech is a new innovation with a touch of
modern technology in the financial field. Fintech is the implementation and utilization of
technology to improve banking and financial services generally carried out by startups by
utilizing the latest software, internet, communication and computerization technologies21 .
The Financial Stability Board (FSB) defines fintech as a new process, product or
business model resulting from modern technological innovation, with a focus on financial
services as the main material. As for the meaning conveyed by Fintech weekly as a business
with a goal that is based on the provision of financial services in the form of the use of
modern software and technology in order to achieve ease of access to financial products and
simple transactions22 .
The increasing number of internet and mobile phone users in United States from year to
year has influenced the growth of fintech activities in United States. The results of a study on
the influence of fintech P2P Lending conducted by the Institute for Development of
Economic and finance (INDEF) in collaboration with the United States Fintech Association
in 2019 have shown a positive impact on economic growth of 0.45%, in addition to the
contribution of fintech to the increase in Gross Domestic Product (GDP) of more than Rp. 60
Trillion. In addition, the existence of fintech is increasingly relevant as a means to deepen the
financial market in United States, especially community groups that have not been served by
formal financial institutions such as MSME players with an increase in the distribution of
fintech loans and then additional employment in terms of labor absorption23 .
Forms of supervision on fintech in United States, as a state of law. POJK formulates
fintech into eight types, namely24 :
First: Settlement of transactions, in this case also related to investment settlement.
Second: Raising capital, which includes equity crowdfunding, alternative due diligence,
virtual exchange and smart contracts. Third: Managing investments, by means of
capabalities sharing social trading and retail algorithmic trading, cloud computing, and
advanced algorithms. Fourth: Raising and channeling funds, such as alternative adjudication,
virtual technologies and P2P lending technologies. Fifth: Insurance, such as digital
distribution, sharing economy. Sixth: Supporting the market, by means of machine
learning/artificial intelligence and supporting analysis of digital finance such as social/eco-
crowdfunding, ewaqf, e-zakat and Islamic digital financing. Seventh: Other financial services
activities such as tokens, vouchers, invoice trading, and blockchain application-based
products.
The scope is conveyed by Bank United States with five categories as stated in article 3
paragraph 1, namely:25
First: Payment system (digital payment), a payment system that covers the
implementation of payment, clearing, authorization, and final settlement. Second: Market
support, market support is a financial technology that uses electronic technology to facilitate
the provision of faster and cheaper information related to financial products and/or services to
the public. Third: Investment management and risk management. Fourth: Lending, financing
and capital provision. Examples of the implementation of financial technology in the
categories of lending, financing, and capital raising include peer-to-peer lending and
information technology-based financing (crowdfunding). Fifth: Other financial services,
which refers to financial technology other than the above categories.
Globally, the first known fintech emerged from Europe in the form of Peer to peer
(P2P) Lending in the UK in 2005 under the company name Zopa. Specifically in United
States, the fintech movement was seen in 2012 with the crowdfunding activities carried out
by Mira Lesmana, Riri Reza and Al-Fatih Timur which became one of the five fintech
categories. However, the legitimacy of the presence of fintech in United States was marked
by the presence of the United States Fintech Association (AFTECH) in March 2016. The
association, officially appointed by the Financial Services Authority (OJK), is responsible for
developing a dynamic fintech ecosystem and financial inclusion in United States that serves
all segments of United States society.
Sharia Financial Technology (Fintech) in United States
The role of Fintech in United States is not as a competitor to banking or financial
institutions but can synergize through collaboration in various product innovations. The era
of digitalization and automation that United States is now in is the industrial era 4.0 with four
principles given by the industrial revolution 4.0, namely: transparent information,
independent decisions, technical assistance that simplifies work and suitability to needs. It is
the right principle that supports the country's financial system in simplifying the supply chain
of the business world. The fintech business field is a digital-based financial service whose all
financial sisters start from payment systems, banking services, insurance services, loans,
crowdfunding to just learning to the community through digital media26 .
As in carrying out its business activities, fintech is divided into two segments, namely
conventional and Sharia segments, both of which are bound by the rules of OJK number 77 /
POJK.0 / 206 on December 26, 2016 concerning information technology-based money
lending services. And specifically for sharia intech is also bound by the Fatwa of the National
Sharia Council of the United States Ulama Council No. 117 / DSN- MUI / II / 2018
concerning Information Technology Based Financing Services based on Sharia principles.
And one of the requirements to be able to operate for sharia fintech is ownership of the halal
label, which is the mechanism for obtaining official registration at OJK then submitting to
DSN-MUI to study business flow and appoint DPS for further supervision until approved by
DSN27 .
The following is a list of official sharia fintech lending companies that have been
licensed by OJK: PT Ammana FIntek Syariah (licensed); PT Investree Radhika Jaya
(licensed); PT Alami Fintek Syariah (licensed).
Natural Existence of Sharia Fintech in United States
Alami Fintech Sharia is a P2P funding platform based on sharia values. P2P products at
Alami are run using a sharia scheme regulated in the DSN-MUI fatwa NO.117 of 2018. In
carrying out its operations, Alami is also supervised by both the Financial Services Authority
and the National Sharia Council of the United States Ulema Council. In addition to P2P
Funding, Alami also provides crowfunding financing services. Alami has been officially
registered and directly supervised by OJK and has received a license according to OJK's
decision letter number: KEP 21/D.05/2020 and supervised by DSN-MUI. Funding activities
in Alami are also carried out in accordance with the MUI fatwa which refers to the DSN-
fatwa No.67/DSN- MUI/III/2008 and 117/DSN- MUI/III/2008.
Security and convenience of transactions in Alami sharia, some of the provisions that
are used as risk mitigation in this sharia fintech include28 :
First: Mitigation of the role of the funder who will be fully responsible for all risks of
delay or default. Second: Mitigation from the organizer, with the consent of the funder to be
able to access, obtain, store, manage and/or use the user's personal data.
Third: Mitigation in the form of a warning to funders who do not have sufficient
knowledge and experience of the financing business are advised not to use this service.
Fourth: Mitigation for beneficiaries to be careful with ujrah/return rates and other fees
according to their ability to repay the loan.
Fifth: Mitigation in the form of information to anyone that every fraudulent activity is
digitally recorded in cyberspace and potentially informed to the public through social media
networks. Sixth: Mitigation in the form of a warning against understanding every step that
has been delivered by the organizer.
Seventh: MITIGASi in the form of information that the financial services authority is
not responsible for any violation or non-compliance of users, both funders and beneficiaries
(either due to intent or negligence of users) with the provisions of laws and regulations or
agreements between the organizer and funders and / or beneficiaries.
Eighth: Mitigation in the form of information that every transaction and pre-credit
activities or the implementation of credit activity agreements between or that see the
organizer, funders and / or recipients are carried out through escrow and virtual accounts as
required in the financial services authority regulation no.77 / POJK.01 / 2016 concerning
information technology-based peer to peer lending services and violation or non-compliance
with these provisions is evidence of a violation of the law by the organizer so that the
organizer wins compensation suffered by each user as a direct result of the violation of the
law above by not reducing the rights of users who suffer losses under civil law.
Wednesday, September 14, 2022 provided a breath of fresh air for natural sharia with
an award from the Global Islamic Finance Award with the category of excellence in Islamic
Fintech Driven innovation. GIFA is one of the most prestigious international award events
for institutions and individuals who have real achievements and contributions to the
development and progress of the Islamic banking and finance industry, this year is the twelfth
event since it was first held in 2011. GIFA is one of the most respected awards in the banking
and Islamic finance industry Islamic finance in the world. The award is a prestigious label of
excellence that recognizes governments, institutions and individuals who have demonstrated
outstanding achievements in their respective fields, contributing to the sustainability of
Islamic banking and finance as a viable system in the international financial architecture, this
year held in Djibouti. GIFA was established in 2011 by Edbiz corporation as part of its
advocacy for Islamic banking and finance. GIFA winners come from all over the world. The
impact of Alami's existence has been felt by more than 10,000 MSME projects with the
achievement of accumulated productive financing of more than Rp.3.5 trillion with a default
rate of 0%.29
Crowdfunding Financing
The term crowdfunding is a crowdfunding service, which is an alternative to collecting
funds for financing carried out by several people who collect their funds with one financing
goal30 . For fintech financing, it is almost confused between P2P lending and crowdfunding,
because both have many similarities. P2P funding is one of the innovations in finance that
brings together funding recipients with funders who want to develop their funds, through a
technology platform.
Different with crowdfunding or crowdfunding financing, in this funding in the form of a
number of funds in the form of donations. In crowdfunding involves three parties, namely the
project owner, the funder and the platform provider. In this situation the project owner only
needs to tell his business idea and the various opportunities. If there is interest in the
proposed exposure, the funders will collectively or jointly provide funds for the business
path. On the other hand, crowdfunding financing activities can be utilized as fundraising for
social purposes32 .
There are four types of crowdfunding: First, Donation based. As the name implies,
donors who deposit their capital with no intention of any reward and are donations to non-
profits. Second, Reward based. This type of proposal is submitted in exchange for goods,
services or something and not in the form of profit sharing. Third, Debt based, this type is the
same as a normal loan mechanism where prospective debtors will submit a proposal and
donors or creditors deposit their capital which is considered a loan with a return. Fourth,
Equity Based. This type has a concept like shares, where the money deposited will become
equity or ownership of the company in exchange for dividends.
Systematic crowdfunding is regulated in United States law as stated in OJK regulation
number 77/POJJK.01/2016 about information technology-based money lending and
borrowing services, in addition there is also OJK regulation NO. 13/POJK.02/2018 on digital
financial innovation in the financial services sector. OJK officially issued regulations related
to crowdfunding services through information technology-based share offerings or equity
crowdfunding contained in POJK no.31/POJK.04/2018 on December 31, 2018.
Conclusion
The existence of Alami Saharia with its awards achieved this year is a great opportunity
for Islamic finance globally in United States to make acceleration to be able to exist more and
spread benefits more widely, The equity crowdfunding financing used by Alami Sharia in
helping MSMEs, is in line with sharia principles and provides many benefits for MSME
projects and even more widely. This is one of the factors that can help United States
economic development with the role of Sharia finance. All the ease and convenience arranged
by Alami Sharia in crowdfunding, especially from the existing risk mitigation, makes many
investors ready and do not hesitate to play a role in investing with sharia in Alami Sharia.
