ISLAMIC MICROFINANCE IN THE D-8 ORGANIZATION FOR ECONOMIC COOPERATION: ADDRESSING CHALLENGES AND STRATEGIC SOLUTIONS
DOI:
https://doi.org/10.18623/rvd.v23.4106Palabras clave:
Financial Inclusion, Islamic Microfinance, Product Innovation, Regulatory Framework, Risk ManagementResumen
Islamic microfinance is a critical mechanism for enhancing financial inclusion and socio-economic development across the D-8 Organization for Economic Cooperation. Nonetheless, the sector’s expansion is constrained by the absence of a harmonized regulatory architecture, limited public cognizance, insufficient innovation, intricate risk management exigencies, and heightened market competition. This conceptual study outlines theory-based strategies to mitigate these challenges. Establishing harmonized regulatory bodies, leveraging social marketing and religious partnerships, and fostering digital engagement can strengthen institutional and public support. Dedicated research, pilot initiatives, and fintech collaborations can promote innovation, and monitoring systems, portfolio diversification, and client training are necessary for robust risk management. Market intelligence, loyalty programs, and tailored financial products can enhance competitiveness. Collectively, these interventions aim to overcome systemic barriers, enabling Islamic microfinance institutions to achieve sustainable growth and contribute meaningfully to financial empowerment within D-8 economies.
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