Online Dispute Resolution In Islamic Fintech Ecosystems And Its Implications For Sharia Compliance

Abstract

The rapid expansion of Islamic financial technology has transformed financial services within Muslim societies and the global Islamic finance industry. Digital platforms support various Sharia-compliant financial activities, including peer-to-peer financing, Islamic crowdfunding, and digital payment systems. The increasing use of these platforms has also generated new forms of disputes among investors, platform operators, and users. Conventional dispute resolution mechanisms often face challenges in addressing conflicts arising from digital financial transactions. Online Dispute Resolution (ODR) has emerged as a technology-based mechanism capable of resolving disputes within online financial environments. This study aims to examine the role of ODR in Islamic fintech ecosystems and analyze its implications for Sharia compliance. The research applies a qualitative normative approach through literature analysis of Islamic finance regulations, fintech governance frameworks, and dispute resolution practices. Academic publications, regulatory documents, and institutional reports are used as the main sources of analysis. The findings indicate that ODR provides significant advantages in digital financial environments, including procedural efficiency, accessibility across jurisdictions, cost reduction, and transparent documentation systems. Digital dispute resolution mechanisms can support fair and efficient conflict settlement within fintech platforms. The discussion highlights that the implementation of ODR in Islamic fintech must align with Sharia principles such as justice, mutual consent, and contractual clarity. Institutional collaboration among regulators, fintech platforms, Islamic arbitration institutions, and Sharia supervisory boards strengthens the legitimacy of digital dispute resolution and supports sustainable Islamic fintech development.