Applicability of ai-based technologies to the interest-free finance sector: “the benefit sharing model” as a new approach

Abstract

This article examines the theoretical background of an approach to interest-free financial transactions called The Benefit Sharing Model. This model is examined via an algorithm dataset in the context of interest-free finance. The innovative approach presented here provides advanced computation and analysis opportunities in interest-free financial transactions, designed using a machine learning algorithm. In this respect, the article evaluates structuring the machine learning algorithm with constant and variable data set groups. The study proves that artificial intelligence-based technologies can be used more effectively by the stakeholders in the interest-free finance sector. Ultimately, it demonstrates that strengthening the existing contract models in the interest-free finance sector and increasing the use of financial technologies will contribute to the development of the sector. The Benefit Sharing Model proposed in this article, uses a machine learning algorithm that is designed to produce decision outputs in interest-free financial transactions. This approach is presented in order to realize financial transactions in accordance with the basic principles of the interest-free finance sector. In fact, in a financial engineering process designed on an interest-free basis, the most basic premise is the obligation to comply with certain principles. For this reason, more detailed transaction analyses are needed for interest-free financial transactions than conventional financial transactions where interest is considered a legitimate instrument.