Islamic Fintech and ESG goals : Key consideration for fulfilling Maqasid principles
The global financial crisis catalyzed a major re-evaluation of the relation: ship between society and the financial sector. Besides the immediate economi impacts from the crisis, it led to a breakdown of trust in institutions, includin financial institutions that have been slow to rebuild. Many within the financiaf sector, including those who have joined the Principles for Responsible lnvestmen ('PRJ') (United Nations Global Compact 2015), recognize the challenges that confront shared humanity especially around climare change and inequality and] are trying to find a solution by focusing on environmental, social and governance_ ('ESG') data. The rising share of asset managers and asset owners using ESG, in their investment decision-making has contributed to a growth in responsiblel investment. Beyond the societal demand for alternatives, prolonged quantitative easing, low or negative interest rates and the thirst for higher yields have floodedr investments into technology start-ups including Fintech companies to drive a new'. paradigm in financial services globally. With a greater faith in technology to dis- ,: rupt old ways of working, Fintech is seen as more capable ofdelivering customer- : centric solutions that democratize the incumbents' domination of how wealth is generated and ultimately invested.