Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance

Md Shahed Alamm; Zahiduzzaman Zahid; Nazmin Naher Nipa; Ibrahim Khalil

doi:doi:10.11648/j.hss.20251303.12

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Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance

Md Shahed Alamm^*

, Zahiduzzaman Zahid

, Nazmin Naher Nipa, Ibrahim Khalil

Published in Humanities and Social Sciences (Volume 13, Issue 3)

Received: 19 March 2025 Accepted: 28 April 2025 Published: 14 May 2025

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Abstract

Climate change represents one of the most pressing challenges to global sustainability, disproportionately impacting vulnerable communities and exacerbating socio-economic inequalities. This paper investigates the transformative potential of integrating Financial Technology (FinTech) with Islamic finance principles to address climate resilience. By harnessing Islamic social finance instruments such as Zakat, Waqf, and Sadaqah, alongside microfinance models, the study proposes a comprehensive framework for advancing sustainable development and climate adaptation. The convergence of FinTech and Islamic finance offers innovative pathways to mobilize resources, enhance financial inclusion, and promote environmentally conscious investments. This research highlights the critical role of technology-driven platforms in scaling Islamic social finance initiatives, enabling efficient resource allocation, and empowering communities to mitigate and adapt to climate risks. By leveraging FinTech solutions such as blockchain, crowdfunding, and digital payment systems, Islamic finance can achieve greater transparency, accessibility, and scalability in addressing climate-related challenges. Furthermore, the integration of microfinance with Islamic principles provides a unique opportunity to support climate-resilient livelihoods, particularly in underserved regions. The findings underscore that a synergistic approach combining FinTech, Islamic finance, and microfinance can significantly contribute to achieving the United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, poverty alleviation, and sustainable communities. This paper concludes that the ethical foundations of Islamic finance, coupled with the disruptive potential of FinTech, present a powerful mechanism for building a climate-resilient future, fostering social equity, and promoting environmental sustainability.

Published in	Humanities and Social Sciences (Volume 13, Issue 3)
DOI	10.11648/j.hss.20251303.12
Page(s)	207-218
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

FinTech, Islamic Social Finance, Climate Resilience, Microfinance, Zakat, Waqf, Blockchain and Crowdfunding in Finance, Digital Financial Services

References

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[2]	CGAP. (2022). Islamic Microfinance and Climate Resilience: A Case Study of Bangladesh. Consultative Group to Assist the Poor.
[3]	Dusuki, A. W. (2019). The Role of Islamic Social Finance in Achieving SDGs. International Journal of Islamic Economics, 7(2), 89-104.
[4]	Elsayed, A., & Meguid, M. (2023). FinTech and Islamic Finance: A Synergistic Approach to Climate Resilience. Journal of Islamic Economics, 15(2), 45-60.
[5]	Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12-43.
[6]	IFSB. (2022). Islamic Financial Services Industry Stability Report. Islamic Financial Services Board.
[7]	IPCC. (2021). Climate Change 2021: The Physical Science Basis. Intergovernmental Panel on Climate Change.
[8]	IsDB. (2021). Islamic Social Finance Report 2021. Islamic Development Bank.
[9]	Khan, F. (2023). Ethical Finance and Climate Resilience: The Role of Islamic Finance. Sustainable Development Journal, 11(3), 78-92.
[10]	Zahiduzzaman, Z., Nahid, I. K., Al-Wadud, M. A., Junaid, M. B., Amin, M. R., & Alamm, M. S. (2025). Bridging Borders: Integrating Islamic Finance and Halal Tourism in the North American Market. Mitteilungen Klosterneuburg. https://doi.org/10.61586/nl1ni
[11]	Mohieldin, M., Iqbal, Z., Rostom, A., & Fu, X. (2021). The Role of Islamic Finance in Enhancing Financial Inclusion. World Bank Group.
[12]	Obaidullah, M. (2021). FinTech Innovations in Islamic Finance: Opportunities and Challenges. Islamic Economic Studies, 29(1), 1-20.
[13]	UNDP. (2022). Human Development Report 2022: Uncertain Times, Unsettled Lives. United Nations Development Programme.
[14]	World Bank. (2020). Poverty and Shared Prosperity 2020: Reversals of Fortune. World Bank Group.
[15]	World Bank. (2023). FinTech and Islamic Finance: Case Studies from Indonesia. World Bank Group.
[16]	Zahiduzzaman, Z. (2021). Achieving Islamic social finance and its role in sustainable development goals. Islamic social finance and its role in achieving sustainable development goals: Islamic economics winter course (1st ed.). PT Penerbit IPB Press.
[17]	Zahiduzzaman, Z. (2023). Islamic Fintech: Concept and Application. Islami Ain O Bichar, 19(74-75), 213-252. https://doi.org/10.58666/iab.v19i74-75.245

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APA Style

Alamm, M. S., Zahid, Z., Nipa, N. N., Khalil, I. (2025). Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanities and Social Sciences, 13(3), 207-218. https://doi.org/10.11648/j.hss.20251303.12

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ACS Style

Alamm, M. S.; Zahid, Z.; Nipa, N. N.; Khalil, I. Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanit. Soc. Sci. 2025, 13(3), 207-218. doi: 10.11648/j.hss.20251303.12

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AMA Style

Alamm MS, Zahid Z, Nipa NN, Khalil I. Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanit Soc Sci. 2025;13(3):207-218. doi: 10.11648/j.hss.20251303.12

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@article{10.11648/j.hss.20251303.12,
  author = {Md Shahed Alamm and Zahiduzzaman Zahid and Nazmin Naher Nipa and Ibrahim Khalil},
  title = {Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance
},
  journal = {Humanities and Social Sciences},
  volume = {13},
  number = {3},
  pages = {207-218},
  doi = {10.11648/j.hss.20251303.12},
  url = {https://doi.org/10.11648/j.hss.20251303.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20251303.12},
  abstract = {Climate change represents one of the most pressing challenges to global sustainability, disproportionately impacting vulnerable communities and exacerbating socio-economic inequalities. This paper investigates the transformative potential of integrating Financial Technology (FinTech) with Islamic finance principles to address climate resilience. By harnessing Islamic social finance instruments such as Zakat, Waqf, and Sadaqah, alongside microfinance models, the study proposes a comprehensive framework for advancing sustainable development and climate adaptation. The convergence of FinTech and Islamic finance offers innovative pathways to mobilize resources, enhance financial inclusion, and promote environmentally conscious investments. This research highlights the critical role of technology-driven platforms in scaling Islamic social finance initiatives, enabling efficient resource allocation, and empowering communities to mitigate and adapt to climate risks. By leveraging FinTech solutions such as blockchain, crowdfunding, and digital payment systems, Islamic finance can achieve greater transparency, accessibility, and scalability in addressing climate-related challenges. Furthermore, the integration of microfinance with Islamic principles provides a unique opportunity to support climate-resilient livelihoods, particularly in underserved regions. The findings underscore that a synergistic approach combining FinTech, Islamic finance, and microfinance can significantly contribute to achieving the United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, poverty alleviation, and sustainable communities. This paper concludes that the ethical foundations of Islamic finance, coupled with the disruptive potential of FinTech, present a powerful mechanism for building a climate-resilient future, fostering social equity, and promoting environmental sustainability.
},
 year = {2025}
}

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TY  - JOUR
T1  - Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance

AU  - Md Shahed Alamm
AU  - Zahiduzzaman Zahid
AU  - Nazmin Naher Nipa
AU  - Ibrahim Khalil
Y1  - 2025/05/14
PY  - 2025
N1  - https://doi.org/10.11648/j.hss.20251303.12
DO  - 10.11648/j.hss.20251303.12
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 207
EP  - 218
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20251303.12
AB  - Climate change represents one of the most pressing challenges to global sustainability, disproportionately impacting vulnerable communities and exacerbating socio-economic inequalities. This paper investigates the transformative potential of integrating Financial Technology (FinTech) with Islamic finance principles to address climate resilience. By harnessing Islamic social finance instruments such as Zakat, Waqf, and Sadaqah, alongside microfinance models, the study proposes a comprehensive framework for advancing sustainable development and climate adaptation. The convergence of FinTech and Islamic finance offers innovative pathways to mobilize resources, enhance financial inclusion, and promote environmentally conscious investments. This research highlights the critical role of technology-driven platforms in scaling Islamic social finance initiatives, enabling efficient resource allocation, and empowering communities to mitigate and adapt to climate risks. By leveraging FinTech solutions such as blockchain, crowdfunding, and digital payment systems, Islamic finance can achieve greater transparency, accessibility, and scalability in addressing climate-related challenges. Furthermore, the integration of microfinance with Islamic principles provides a unique opportunity to support climate-resilient livelihoods, particularly in underserved regions. The findings underscore that a synergistic approach combining FinTech, Islamic finance, and microfinance can significantly contribute to achieving the United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, poverty alleviation, and sustainable communities. This paper concludes that the ethical foundations of Islamic finance, coupled with the disruptive potential of FinTech, present a powerful mechanism for building a climate-resilient future, fostering social equity, and promoting environmental sustainability.

VL  - 13
IS  - 3
ER  -

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Author Information

Md Shahed Alamm

Islamic Product Development and Innovation, Bangladesh Finance PLC, Dhaka, Bangladesh

Contact Email

http://orcid.org/0009-0004-5203-0866
Zahiduzzaman Zahid

Business Analytics, University of the Cumberlands, Williamsburg, USA

Contact Email

http://orcid.org/0009-0009-0075-0905
Nazmin Naher Nipa

Institute of Disaster Management and Vulnerability Studies, University of Dhaka, Dhaka, Bangladesh

Contact Email
Ibrahim Khalil

Computer Science and Engineering, Khulna University of Engineering and Technology, Khulna, Bangladesh

Contact Email

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Plain Text BibTeX RIS

APA Style

Alamm, M. S., Zahid, Z., Nipa, N. N., Khalil, I. (2025). Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanities and Social Sciences, 13(3), 207-218. https://doi.org/10.11648/j.hss.20251303.12

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ACS Style

Alamm, M. S.; Zahid, Z.; Nipa, N. N.; Khalil, I. Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanit. Soc. Sci. 2025, 13(3), 207-218. doi: 10.11648/j.hss.20251303.12

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AMA Style

Alamm MS, Zahid Z, Nipa NN, Khalil I. Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance. Humanit Soc Sci. 2025;13(3):207-218. doi: 10.11648/j.hss.20251303.12

Copy | Download

@article{10.11648/j.hss.20251303.12,
  author = {Md Shahed Alamm and Zahiduzzaman Zahid and Nazmin Naher Nipa and Ibrahim Khalil},
  title = {Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance
},
  journal = {Humanities and Social Sciences},
  volume = {13},
  number = {3},
  pages = {207-218},
  doi = {10.11648/j.hss.20251303.12},
  url = {https://doi.org/10.11648/j.hss.20251303.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20251303.12},
  abstract = {Climate change represents one of the most pressing challenges to global sustainability, disproportionately impacting vulnerable communities and exacerbating socio-economic inequalities. This paper investigates the transformative potential of integrating Financial Technology (FinTech) with Islamic finance principles to address climate resilience. By harnessing Islamic social finance instruments such as Zakat, Waqf, and Sadaqah, alongside microfinance models, the study proposes a comprehensive framework for advancing sustainable development and climate adaptation. The convergence of FinTech and Islamic finance offers innovative pathways to mobilize resources, enhance financial inclusion, and promote environmentally conscious investments. This research highlights the critical role of technology-driven platforms in scaling Islamic social finance initiatives, enabling efficient resource allocation, and empowering communities to mitigate and adapt to climate risks. By leveraging FinTech solutions such as blockchain, crowdfunding, and digital payment systems, Islamic finance can achieve greater transparency, accessibility, and scalability in addressing climate-related challenges. Furthermore, the integration of microfinance with Islamic principles provides a unique opportunity to support climate-resilient livelihoods, particularly in underserved regions. The findings underscore that a synergistic approach combining FinTech, Islamic finance, and microfinance can significantly contribute to achieving the United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, poverty alleviation, and sustainable communities. This paper concludes that the ethical foundations of Islamic finance, coupled with the disruptive potential of FinTech, present a powerful mechanism for building a climate-resilient future, fostering social equity, and promoting environmental sustainability.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Harnessing FinTech and Islamic Finance for Climate Resilience: A Sustainable Future Through Islamic Social Finance and Microfinance

AU  - Md Shahed Alamm
AU  - Zahiduzzaman Zahid
AU  - Nazmin Naher Nipa
AU  - Ibrahim Khalil
Y1  - 2025/05/14
PY  - 2025
N1  - https://doi.org/10.11648/j.hss.20251303.12
DO  - 10.11648/j.hss.20251303.12
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 207
EP  - 218
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20251303.12
AB  - Climate change represents one of the most pressing challenges to global sustainability, disproportionately impacting vulnerable communities and exacerbating socio-economic inequalities. This paper investigates the transformative potential of integrating Financial Technology (FinTech) with Islamic finance principles to address climate resilience. By harnessing Islamic social finance instruments such as Zakat, Waqf, and Sadaqah, alongside microfinance models, the study proposes a comprehensive framework for advancing sustainable development and climate adaptation. The convergence of FinTech and Islamic finance offers innovative pathways to mobilize resources, enhance financial inclusion, and promote environmentally conscious investments. This research highlights the critical role of technology-driven platforms in scaling Islamic social finance initiatives, enabling efficient resource allocation, and empowering communities to mitigate and adapt to climate risks. By leveraging FinTech solutions such as blockchain, crowdfunding, and digital payment systems, Islamic finance can achieve greater transparency, accessibility, and scalability in addressing climate-related challenges. Furthermore, the integration of microfinance with Islamic principles provides a unique opportunity to support climate-resilient livelihoods, particularly in underserved regions. The findings underscore that a synergistic approach combining FinTech, Islamic finance, and microfinance can significantly contribute to achieving the United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, poverty alleviation, and sustainable communities. This paper concludes that the ethical foundations of Islamic finance, coupled with the disruptive potential of FinTech, present a powerful mechanism for building a climate-resilient future, fostering social equity, and promoting environmental sustainability.

VL  - 13
IS  - 3
ER  -

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