By Husam Suleiman
Abstract
This paper serves to explore the next paradigm of evolution regarding Islamic finance products in light of the development and vast success of crowdfunding platforms. The first section examines the shifting paradigm of the Islamic finance lending product in America; the Islamic finance mortgage product. Demonstrated is that each subsequent shift in lending procedure has removed Islamic attributes associated therein, resulting with current products that have lost the substance of Islamic teachings and have fundamentally converged to the conventional product in function and form. The second section then reviews the methodology and practice of crowdfunding in the current financial landscape. Thereupon, juxtaposed are the advantages and attributes of crowdfunding and Islamic finance, highlighting the overwhelming similarities. The third section accordingly considers the current opportunity presented with crowdfunding, outlining additional attributes that must be present in an Islamic finance product. The article ultimately concludes by calling upon Islamic financial product developers to explore and pursue the current opportunity presented by the natural pairing of crowdfunding and Islamic finance products.
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