The Transformation of Zakat Management Via Fintech: Issues and Challenges

Abstract

The use of technology in zakat management has brought a significant transformation in how zakat funds are collected and distributed. However, there are several key issues and challenges in transforming zakat management through fintech, which is increasingly used in human life. Therefore, the objective of this study is to identify the main issues and challenges in the implementation of zakat management via fintech. This is a qualitative study using content analysis. The data obtained are from previous studies and websites. The study identifies six main challenges faced in this issue. First, the influence of technology in fintech on zakat; second, security measures; third, the challenges faced by zakat via fintech institutions in the collection and distribution of zakat; fourth, awareness and understanding of zakat via fintech; fifth, the use of blockchain technology in zakat management; and sixth, the use of artificial intelligence (AI) and big data analytics in determining zakat recipients. This study suggests that the public and official institutions involved in zakat should be more widely exposed to zakat management through fintech to enhance the efficiency and effectiveness of zakat collection and distribution.