Integrating financial inclusion and saving motives into institutional zakat practices

Purpose – The purpose of this paper is to identify how zakat institutions in Brunei can facilitate financial inclusion into their practices and assist to fulfil the saving motives of zakat recipients, notably upon creating financial products/solutions for the poor and destitute. Design/methodology/approach – Using mixed methods approach, structured interviews were conducted with 431 individuals (215 welfare recipients and 216 non-welfare recipients) and semi-structured interviews were conducted with 39 welfare recipients. Findings – This paper highlights the need for bank accounts and credit facilities that meet the needs of welfare recipients, to fulfil their daily needs, as well as saving for children/grandchildren’s education, and for welfare recipients who save. Research limitations/implications – Limitation includes non-random sampling. Practical implications – The implications of these findings point out how zakat and other social institutions in Islam can adapt to contemporary challenges in personal finance, notably in facilitating financial inclusion and understanding saving motives of recipients. Originality/value – This paper provides a perspective and contention for zakat institutions to adapt to contemporary aspects of personal finance, through facilitating financial inclusion and the saving motives of zakat recipients.