Development of an AI-Based Productive Waqf Fintech Model for Economic Empowerment of Vulnerable Communities

Abstract

The rapid convergence of Artificial Intelligence (AI), financial technology (fintech), and Islamic social finance has created new opportunities to strengthen productive waqf as an instrument for economic empowerment, particularly for vulnerable communities. This study develops an AI-based productive waqf fintech model designed to enhance asset optimization, expand financial inclusion, and improve socio-economic resilience. The model integrates three technological pillars Smart Waqf systems, AI-driven financial analytics, and digital crowdfunding mechanisms to ensure that waqf governance becomes more transparent, efficient, and equitable. The research adopts a qualitative systematic approach supported by a PRISMA-guided literature screening process to synthesize evidence from recent academic studies, policy documents, and empirical reports. Findings indicate that AI can enable automated credit scoring, personalized financial education, and precise beneficiary targeting, resulting in greater accessibility for microenterprises and low-income groups. Moreover, integrating crowdfunding and microfinance platforms within waqf systems enhances capital mobilization and accelerates the distribution of economic benefits. The model also aligns with global development priorities, particularly the Sustainable Development Goals (SDGs), by promoting inclusive growth, reducing poverty, and strengthening social welfare ecosystems. However, several challenges persist, including low digital literacy among beneficiaries, weak regulatory frameworks, data privacy risks, and the need for AI ethics grounded in maqasid al-shariah. To address these issues, the study recommends strengthening digital governance, enhancing cross-institutional collaboration, improving literacy programs, and ensuring human-centric AI development. Overall, the proposed model demonstrates significant potential to transform waqf into a scalable, technology-enabled instrument for sustainable community empowerment.