The Principle of Maslahah in Modern Financing: an Analysis of Fiqih Muamalah on Fintech Products

Abstract

The development of financial technology (fintech) has introduced various modern financing products that facilitate public access to capital and financial services. However, this convenience poses challenges from a muamalah (Islamic jurisprudence) perspective, particularly regarding the conformity of contracts, cost transparency, and the application of sharia principles. This study aims to analyze modern fintech financing products using a muamalah (Islamic jurisprudence) approach, assessing the compliance of their practices with the principle of maslahah (benefit) as the foundation of Islamic economic ethics and law. The study employed a qualitative, normative-descriptive method, incorporating library research into the Quran, Hadith, classical and contemporary fiqh books, fatwas from the Indonesian Ulema Council (DSN-MUI), and Sharia fintech literature. The analysis focused on the characteristics of the contracts used, the potential for usury or gharar (interest), and the impact of fintech products on people's welfare and economic behavior. The results indicate that some modern fintech products use qardh contracts or a combination of qardh and ijarah, accompanied by varying service fees. The application of the maslahah principle emphasizes the need for clear contracts, cost transparency, and consumer protection to minimize the risks of usury, uncertainty, and excessive consumption. By strengthening the maslahah principle, fintech products can become financing instruments that are not only efficient but also ethical, fair, and beneficial to society in accordance with the maqasid of sharia.