How Islamic are the services offered by Islamic P2P financing fintech companies? An observation from Indonesia

Peer-to-peer (P2P) financing is currently the most common service Islamic financial technology (Fintech) companies provide. By delivering technical assistance to connect the providers and users of capital, Islamic P2P financing companies play a strategic role in supporting initiatives to boost the suboptimal levels of financial inclusion in OIC countries, including Indonesia. Yet, how shariah-compliant are these companies’ services? This study addresses this question by applying a qualitative method based on document analysis and observation of several Indonesian Islamic P2P financing companies. The authors found that various Islamic P2P financing company practices have the potential to conflict with shariah provisions. By offering actionable solutions to assist Islamic P2P financing practitioners in handling this concern, it is hoped that this study contributes to examining how shariah principles can be applied in the operation of Islamic P2P financing companies and yield practical implications for the relevant practitioners.