Fintech-Based Crowdfunding System for Zakat Collection: An Innovation in Social Funding in the Digital Era An Innovation in Social Funding in the Digital Era

Abstract

The application of financial technology (fintech) in zakat management offers innovative opportunities to enhance efficiency, transparency, and inclusivity in the collection and distribution of zakat. This article explores the potential of fintech-based crowdfunding systems in addressing the limitations of traditional methods, such as limited reach and lack of accountability. Through a research approach based on a literature review, the study provides an analysis of the concepts, benefits, and challenges of integrating this technology into zakat management. The study findings indicate that fintech platforms, such as blockchain and crowdfunding, can enhance public trust through real-time reporting and transaction transparency. These technologies also expand public access, including in remote areas, and facilitate the participation of the digitally literate younger generation in fulfilling the Pillars of Islam, such as paying zakat. Automation of administrative processes accelerates the distribution of zakat funds to beneficiaries. Challenges such as the need for robust regulations, data security, and public digital literacy remain barriers that must be addressed. A clear regulatory framework is essential to ensure compliance with Sharia principles and to prevent the misuse of technology. With appropriate support and development, fintech-based crowdfunding systems have the potential to revolutionize zakat management, increase fund collection, and make significant contributions to poverty alleviation and sustainable economic development.