Fusion of Blockchain and Islamic Fintech: Unlocking New Possibilities in SME Financing, Financial Well-Being, and Trade Financing

Islamic fintech refers to financial services that leverage modern technology to offer Sharia-compliant products, ensuring that transactions adhere to Islamic ethical standards. Using secondary data, we discuss Islamic fintech, focusing on small- and medium-sized enterprise (SME) financing, financial well-being, and trade financing in emerging markets, aiming to discover opportunities and challenges, the role of stakeholders, risk mitigation, and blockchain optimization. The results reveal that implementing various strategies is pivotal for mainstream Islamic fintech. This includes conducting risk assessments of business processes, introducing clear procedures for managing risk, ensuring an effective internal control system, building good relationships with regulators, implementing a robust cybersecurity system to accelerate these industries, increasing financial literacy, adopting blockchain technology, and adjusting business strategies. This research is likely to benefit industry or market players, regulators, and other stakeholders in developing better strategies to support the growth and development of SME financing, financial well-being, and trade financing.