The University of East London Centre for Islamic Finance, Law and Communities held a public lecture on 22 February 2017 focused on FinTech in Islamic Finance. The keynote speaker was Professor Volker Nienhaus. Professor Nienhaus dealt with four topics: Islamic FinTech and crowdfunding regulations, Shari’ah limits to innovation in FinTech, Shari’ah encouragement for FinTech solutions and the potential disruption of Islamic consumer banking by genuine trade credit. Nienhaus predicted that Islamic consumer banking could be disrupted in the future by genuine trade credit. Islamic-compliant cash rich e-commerce platforms could provide financial services equivalent to Amazon or Alibaba on a Shari’ah-compliant basis. These platforms could sell halal goods and approve Shari’ah compliance. These platforms could instantly check the credit worthiness of buyers and would have a higher credit risk tolerance than traditional banks.
Venue: University of East London, Main Lecture Theathre, University Square Stratford.
Speaker: Professor Volker Nienhaus
FinTech is disruptive. Existing regulations do not fit well with new products. “Islamic” FinTech adds the requirement of Shariah compliance to the legal complexity of financial innovations. Islamic jurists and Shariah standard setters have not yet systematically dealt with issues such as “cryptocurrencies,” risk mitigation in crowdfunding, smart contracts, or the status of decentralised autonomous organisations (DAOs). Is there a need for “Shariah sandboxes” to reduce Shariah non-compliance risks for innovators?
Dr. Volker Nienhaus was a Professor of Economics at the University of Bochum and President of the University of Marburg. Currently, he is Adjunct Professor at the International Centre for Education in Islamic Finance (INCEIF) in Malaysia, consultant to the Islamic Financial Services Board (IFSB) and a member of the International Advisory Panel of the World Islamic Economic Forum (WIEF).
The 13th Islamic Financial Stability Forum (IFSF) was successfully organised by the Islamic Financial Services Board (IFSB) on 12 April 2016 and was held in Cairo, Egypt on 10-12 April 2016, hosted by the Central Bank of Egypt. The theme of Forum was Consumer Protection in Islamic Finance, and the main presentation was by Professor Volker Nienhaus, the Former President of Marburg University. He stated that while most of the issues in consumer protection cover both conventional and Islamic segments of the financial system, there are some risks pertinent to Islamic finance sector, such as Shariah non-compliance risk.
It is often claimed that Islamic finance is not only for Muslims, sending the message that the market potential of Islamic finance is far greater than just the global population of Muslims. However, Shari'ah compliance as the constitutive element of Islamic finance is in itself rather irrelevant for non?Muslims. It could be macro?systemic or micro?commercial or ethical implications of the observance of Islamic law which make it appealing to non?Muslims. If it is not 'systemic superiority' that will attract non?Muslims, then it could be the pricing of Islamic products or their quality that the customers see as individual benefit for themselves. The responsible investing movement is a great opportunity for Islamic finance, but also a great challenge at the same time.
GLOBAL CALLS FOR ECONOMIC JUSTICE: THE POTENTIAL OF ISLAMIC FINANCE
Date: Wednesday 22 February 2012
Venue: Hong Kong Theatre, Clement House, London School of Economics
Speakers: Mukhtar Hussain, Professor Volker Nienhaus
Chair: The Hon. Mr Justice Cranston
A historic opportunity for economic and financial change guided by Sharia-compliant instruments appeared because of the political transformation in the Middle East and North Africa.
Volker Nienhaus, economic adviser and former president of the University of Marburg, stated at the 19th International Conference on Investment Rules and their Impact on Economic Development that Islamic instruments should be invested in the development of an entrepreneurial middle class so that long-term economic progress and job creation can be guaranteed.
Dr Nienhaus underlined his statement by telling Gulf News that the promotion of enterprise among the middle class was the key to ensuring regional stability.