FinTech-integrated zakah-based ownership model: a more efficient and sustainable product of Islamic finance for poverty alleviation

Purpose This paper aims to develop a zakah-based ownership model and explain the scope of governing it by incorporating financial technologies (FinTech) in different phases for poverty alleviation more effectively and efficiently in Muslim countries. Design/methodology/approach The study is a conceptual one. Therefore, it is both descriptive and explorative. While developing the zakah-based ownership model, the Holy Quran and Hadith have served as a basis and guide in addition to current literature on zakah management. Findings In this paper, a zakah-based ownership model is developed from an Islamic perspective to administer zakah more effectively and efficiently for poverty reduction. The study revealed that the judicious incorporation of new and emerging technologies – ledger technology, big data, the internet of things, cloud computing, artificial intelligence, biometric technologies, blockchain, mobile and digital payment, data analytics and virtual reality – in the different phases of the zakah-based ownership model might help contribute to poverty alleviation more proficiently and successfully as compared to the traditional style of zakah management. Originality/value This study entails the very first zakah-based ownership model, which might be more fruitful in the areas of collection, distribution and administration of zakah and thereby contribute to poverty alleviation more rigorously as compared to the traditional zakah administration.