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Hazik Mohamed and Hassnian Ali
Blockchain, Fintech, and Islamic Finance
Hazik Mohamed and
Hassnian Ali
Blockchain, Fintech,
and Islamic Finance

Building the Future in the

New Islamic Digital Economy
ISBN 978-1-5474-1712-4
e-ISBN (PDF) 978-1-5474-0096-6
e-ISBN (EPUB) 978-1-5474-0098-0

Library of Congress Control Number: 2018962039

Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;
detailed bibliographic data are available on the Internet at http://dnb.dnb.de.

© 2019 Hazik Mohamed and Hassnian Ali

Published by Walter de Gruyter Inc., Boston/Berlin
Printing and binding: CPI books GmbH, Leck
Typesetting: MacPS, LLC, Carmel

www.degruyter.com
Advance Praise for Blockchain, Fintech, and
Islamic Finance
The authors are to be congratulated for this book. It is an important pio-
neering effort. The work is on the frontier of knowledge in the new area of
Fintech. As is well known, the financial sector is suffering from low levels
of trust in a trust-intensive industry. Islamic finance too is facing a low-trust
environment that has denied it the use of the strongest of its characteristics:
risk-sharing. As a result, it has resorted to debt-based financing. Blockchain/
smart contracts provide potentially powerful tools to address the low-trust
challenge. The authors have done a great service to Islamic and conventional
finance by producing a book that should be read by anyone interested in
finance and economics.
̶̶Prof. Dr. Abbas Mirakhor, Holder of the First Chair of Islamic Finance at
INCEIF; retired Dean of the Executive Board of the International Monetary
Fund (IMF), Washington D.C.

This is an important contribution by the authors to two emerging fields—

Islamic finance and FinTech. In this respect, it touches two frontiers as this
research could pave the way for the development of both fields. FinTech
offers great potential for reaping the benefits of Islamic finance and this
book provides an excellent overview of the issues and applications. I am
confident that researchers, policy-makers, and practitioners would benefit
from this important work.
̶̶Dr. Zamir Iqbal, VP Finance and Chief Financial Officer (CFO) of Islamic
Development Bank (IsDB), Jeddah; former Head of World Bank Global
Islamic Finance Development Center, Istanbul.

In this digital era, new technology has proven to bring agility, scalability,
innovation, and efficiency in operations and means of doing our work. This
book argues, persuasively, that the Fintech and Blockchain applications are
not only the channels of fusing technology with Islamic finance; it also lays
the foundation for new Islamic digital economy, while keeping in view the
Maqasid Al-Shariah. This book is a first-of-its-kind contribution to the litera-
ture on constructing the Islamic digital economy.
̶̶Dr. Hussain Mohi-ud-Din Qadri, Patron, International Centre of
Research in Islamic Economics (ICRIE) Minhaj University, Lahore.

DOI 10.1515/9781547400966-202
vi Advance Praise for Blockchain, Fintech, and Islamic Finance

While the growth of fintech firms has already become a game changer in the
conventional financial sector, its application in Islamic economy is still in
an incipient stage. The authors of this pioneering work deserve appreciation
to not only offer a historical perspective on these exciting developments but
also suggest ways to building Islamic digital economy with the use of these
tools, especially distributed ledger technology. I would recommend this book
to all those who are interested in building a trusted, just and efficient Islamic
digital economy.
̶̶Zahid ur Rehman Khokher, Assistant Secretary General of the Islamic
Financial Services Board (IFSB), Kuala Lumpur.

The authors hit the mark; blockchain needs to become part and parcel of
economics, finance and policy across Muslim-majority countries. It is crit-
ical for the leadership to understand what blockchain is and its potential
application. Islamic economies need to carefully consider the adoption and
the potential institutionalization of blockchain across various facets of their
economics. The authors lay the groundwork in this book, and it is a must-
read for the broad audience whose desire is to focus on a next generation
technology, its adoption and implications.
̶̶Omar Rana, Director of Strategy and Finance at Finalytix, Toronto, and
former Chief Investment Officer for a US$500M private family
office in the GCC.
Dr Hazik Mohamed:
I dedicate this book to my daughters, Aliya and Nadrahuda. And to all their
cousins, young and old—Syazwan Hanif, Mohamed Hasif, Abdul Hadi, Haris,
Abdul Rahman and Abdul Rahim.

This book contains the shifting trends of the world that you’re growing up
in. Prepare your contributions for the world to come … and the Hereafter that
awaits.

Hassnian Ali:
First, to the most devoted and conscientious person in my life, no one else,
my late father Ghulam Hussain.
About De|G PRESS

Five Stars as a Rule

De|G PRESS, the startup born out of one of the world’s most venerable publishers,
De Gruyter, promises to bring you an unbiased, valuable, and meticulously edited
work on important topics in the fields of business, information technology, com-
puting, engineering, and mathematics. By selecting the finest authors to present,
without bias, information necessary for their chosen topic for professionals, in
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In keeping with these principles, the books you read from De|G PRESS will
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We invite businesses to order our books in bulk in print or electronic form as a
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DOI 10.1515/9781547400966-204
 Acknowledgments
All praises to Allah, the All-Compassionate, the Most Merciful, without Whom
nothing is possible. Blessings upon our beloved prophet Muhammad and
upon his family and companions.
We acknowledge the advice and recommendation extended by Professor
Abbas Mirakhor and Nick Wallwork in regards to the manuscript.
We also want to express our appreciation to Jeffrey Pepper and his team
for their responsive actions in making this book a reality within the seemingly
impossible schedule that we had proposed.
Hassnian would like to express his profound gratitude to his mother,
Muniran Bibi, and his late father. Their forbearance, guidance and support has
been exceptional, and he would not be who he is today without them. Hassnian
also acknowledges his dear sister, Rakhshinda Parveen, his elder brother, Arfan
Ali, and especially his twin brother, Muhammad Saqlain, who understands and
encourages him to achieve great things.
Dr Hazik recognizes his family for being the heart of inspirational support,
especially his wife, Anisa Hassan; his siblings, their spouses and his in-laws for
their generosity and prayers; and his beloved parents (deceased) who laid the
foundation of belief, endeavor, fairness and justice.

DOI 10.1515/9781547400966-205
Foreword
If you have yet to delve into the world of blockchain and fintech and how they
are connected to Islamic finance recently, this book is the most comprehensive
and practical book ever written on the topic. It looks deep inside the working
protocols of both blockchain and fintech. Interestingly, this book covers all the
relevant and interconnected topics, making it a must-read book on the subject of
blockchain and fintech.
When I was asked to write a few words reflecting on my thoughts about this
book that was sent to me, I immediately felt the vibrancy of this book, even by
merely looking at the table of contents. The content coverage and selected issues
and sub-topics reflect well the intensity of the authors’ knowledge and exposure,
as well as their intuition. As everyone has been looking for a master key for this
most timely knowledge, I am confident this book will prove to be useful and timely.
It may surprise you to know that this book’s algorithm fits perfectly well with
the issues presented in it. This makes this book special, as everything and any-
thing mentioned in this book is essentially framed by cutting-edge knowledge
of blockchain, fintech and, to a considerable extent, the digital economy. This is
not an easy task to accomplish, unless the authors are exceptionally articulate
in explaining these concepts. They have proven themselves to be masters in this
field of knowledge and practice.
This book is equally informative with regard to Islamic finance, covering
aspects of the Islamic capital markets, Islamic investment, retail banking, takaful,
trade financing and sukuk. I would like to believe that this is the most striking
contribution of this book toward the further development of Islamic finance via
smart technology. It appears to me that Islamic finance has no other option but to
embrace this up-and-coming way of doing banking, insurance, investment and
fundraising. If Islamic finance does not choose to be agile and scalable, as well as
innovative, Islamic finance is obviously destined to face constraints and obsoles-
cence, due to stiff competition on many fronts. As the saying goes, life is not the
art of avoiding, but is the art of adapting and improving.
The era of digitalization and platform has finally arrived. Nevertheless, this
brings less benefits and credence to Islamic finance if Islamic finance refuses to
embark on further refinement, enhancement and perfection via blockchain and
fintech. This is one of many insights that the authors of this book are trying to
impress upon the readers. You will find all these aspects of this books both chal-
lenging and yet promising.
How will your knowledge be transformed after reading this book? I have
taken the liberty to pose this question in your early journey embarked upon
with this book. I have a gut feeling that any reader—of course with an inquisitive
DOI 10.1515/9781547400966-206
xiv Foreword

mind—will unlock not only the real potential of Islamic finance in the fourth
Industrial Revolution era, but also, more importantly, discover the logic and
power of smart technology to accomplish more things smarter, quicker and safer
than an average man is capable of, given the same time allocation and complex-
ity of the tasks at hand.
For all intents and purposes, we can’t compete with technology, more so
smart technology. We have to come to terms to these new technologies. It is rea-
sonable and logical for humankind to embrace these developments and use all
sorts of technologies to increase production and efficiency. At some point in time,
we need to believe in technology as the savior for some of the complex, compel-
ling problems and crises faced by humanity, even in the space of human sciences.
In all honesty, I could be a bit biased in my future outlook about smart tech-
nology, and that includes blockchain, fintech and artificial intelligence—given
the fact that I am also a hardcore practitioner of smart technology in some of my
initiatives—but of course, I did not conjure up this sentiment out of thin air. The
world has long been moving toward perfection and precision—at least in some
areas of life. Any and every evolution in this world started from humble begin-
nings but it will strike hard when it is the right time. The only problem is that
we don’t know when is the best time for everything. A quote from Martin Luther
King may shed some hope. He once said, “There is always the right time to do
what is right.”
Obviously, I am not in a position to say for sure when is the right time for this
new and smart technology. However, I am confident that this book has emerged
at the right time for the readers to be enlightened with comprehensive, trendy and
impactful insights about almost everything that is connected with the themes of
blockchain, fintech, digital economy and Islamic finance.
Finally, I am extremely pleased and delighted to introduce this book to you
and I hope you will enjoy reading it as I did.
̶ Datuk Dr. Mohd Daud Bakar,
Chairman of the Shariah Advisory Council at the Central Bank of Malaysia
and the Securities Commission of Malaysia
Contents
Chapter 1: Introduction  1
The Rationale for Financial Disruption  1
Ethics and Technology  2
Digital Transformation and Development  4
Shifts in Customer Behavior  6
Changes in Engagement and Purchasing Behaviors  8
Structure of the Book  8

Chapter 2: Fintech—Definition, History, and Global Landscape  13

Introduction  13
Definition and Concept of Fintech  13
Evolution of Fintech  15
Fintech 1.0 (1866–1987)  17
Fintech 2.0 (1987–2008)  18
Fintech 3.0/3.5  21
Global Landscape of Fintech  22
Fintech Investment  23
Fintech in Major Regions  24
Cryptocurrencies and Initial Coin Offerings  28
Cryptoexchanges  35
e-Wallets  37
Fiqh View on Coins and Tokens  40
Progressive Importance of CyberSecurity  43

Chapter 3: Importance of Fintech and Its Applications  49

Introduction  49
Financial Innovation within the Financial Services Industry
Perspective  50
Payments Industry  50
Crowdfunding and P2P Lending  52
Neo-Banking  54
Asset under Management  55
InsurTech  56
Fintech within the Technological Perspective  57
Blockchain and Its Applications  57
Cloud Computing  58
Big Data Analysis  59
Internet of Things  60
xvi Contents

Robo-Advisors  62
Artificial Intelligence  63
Machine Learning and Deep Learning  64

Chapter 4: Emergence of Islamic Fintech and its Developments  69

Introduction  69
What Is Islamic Fintech?  70
Alignment between Islamic Finance and Fintech  70
Islam and Fintech in History  72
Islamic Fintech Developments Around the Globe  74
Islamic Fintech  75
Islamic Fintech Alliance  88
World’s First Islamic Endowment Crowdfunding Platform  89
Islamic Countries’ Initiatives for Islamic Fintech  90
Islamic Republic of Pakistan (Islamabad, Lahore)  91
Kingdom of Bahrain (Manama)  93
Kingdom of Saudi Arabia (Jeddah, Riyadh)  94
Malaysia (Kuala Lumpur)  95
Republic of Indonesia (Bandung, Jakarta, Surabaya, Yogyakarta)  99
Republic of Turkey (Istanbul)  101
Sultanate of Brunei (Brunei Darussalam)  102
United Arab Emirates (Dubai)  103
United Kingdom (London)  104
Impediments for Islamic Fintech  106

Chapter 5: Blockchain and the Digital Economy  111

Introduction  111
Investments in Blockchain  113
Trends of the Sharing Economy and the Internet of Things Era  114
Trust in the New Sharing Economy  120
Trust and Reciprocity in the Economy  121
Trust and Trustworthiness (Reciprocity) in Islam  123
What Is Blockchain?  123
Blockchains as Databases and Public Registries  128
Blockchain as Smart Contracts  129
Blockchain as Clearing and Settlement of Securities
Transactions  130
Blockchain Infrastructure  133
Storage  134
Processing  135
Communications  137
 Contents xvii

Chapter 6: Expanded Use Cases of Blockchain  139

Smart Contracts in Islamic Transactions  139
How Does a Smart Contract Work?  139
Automation and Enforceability  142
Benefits and Evolution of Blockchain-Based Smart Contracts  142
Applications of Smart Contracts  143
Islamic Trade Financing  144
Blockchain-Based Trade Finance  145
Enablers to Blockchain-Based Trade Financing  147
Current Challenges  148
Takaful (Islamic Insurance) on the Blocks  149
A Model for a Blockchain-Based Takaful  151
Blockchain-Based Islamic Capital Markets  154
Payments and Settlements  156
Sukuk on the Blockchain  158
Distributed Ledger Technology and the Over-the-Counter
Market  160
Media Rights, Intellectual Property, and Trademark Protection  160
Generating Advertising Revenues  162
Collections and Copyright Tracking  163
LegalTech and the Evolution of Legal Services  164
Legal Research  165
Contract Management  165
Intellectual Property Management  165
Automation and Analytics  165
eDiscovery  166

Chapter 7: Evolution of Blockchain  169

Introduction  169
Transnational Justice Applications for the Economy  170
Coordination and Efficiency in Markets through Consensus-
Building  171
Pragmatic Approach to Blockchain Implementation  172
Overcoming Limitations of Blockchain  176
Technical Challenges  176
Business Challenges  177
Government Regulatory Challenges  178
Privacy Challenges  179
xviii Contents

Chapter 8: Response of Islamic Financial Institutions  181

Introduction  181
Important Success Factors in this Era of Digitization  181
Better Customer Experience with Customer Centricity  181
Agility and Scalability  182
Building the Ecosystem  183
Cybersecurity Management  184
Challenges for Islamic Financial institutions  185
Regulatory Issues  185
Comfort Zones and Stagnation in Management  186
Lack of Talent  187
Collaboration Models for Islamic Financial Institutions  189
Islamic Fintech is Opportunity for Islamic Financial Institutions  191
Collaboration is Better than Competition  192
Open Platforms  193
Conclusion  195

Index  201
Preface
The demand for fintech solutions is underscored by the rapid adoption of tech-
nology, high-levels of mobile usage and rising rates of internet penetration, an
increasingly urban, literate and young population, as well as a segment of con-
sumers and micro, small and medium-sized enterprises (MSMEs) underserved
by traditional banking solutions. These factors and the economic potential of
ASEAN have also attracted large numbers of investors to the sector.
To realize the potential benefits fintech innovation can bring will require
commitment and collaboration. Banks, industry leaders, fintech companies and
regulators should continue to collaborate to create an ecosystem to drive greater
access to financial services in the Islamic economy. Building the Islamic fintech
ecosystem is complicated and it involves various market participants and stake-
holders coming together and working toward shared goals of a unified Islamic
economic community, increased financial inclusion for the unbanked and the
seamless cross-border flow of goods, services and payments.
The Islamic world is ripe for technology transformation across sectors such
as e-commerce, travel and hospitality, and, of course, financial services. Technol-
ogy unicorns Lazada, Go-Jek, SEA (formerly Garena) and Grab are just the begin-
ning of a bigger push of tech companies enabling connectivity, consumption and
economic growth. Where 2010 saw the rise of Chinese tech giants and 2015 the
re-awakening of the Indian subcontinent, the next five years will be marked by
the tremendous opportunities in ASEAN.1 It was imperative that this book covered
the developments of fintech in every region of the world, beyond the traditional
markets of North America and Western Europe.
When this project was conceived, there were rapid developments in the Initial
Coin Offering (ICO) world due to the rapid rise of bitcoin value, which drove up
the prices for other cryptocurrencies as well. Suddenly the attention shifted to
the ease of raising capital via a decentralized platform where regulations were
non-existent. During this time, there were many ICO projects that were launched
and were able to raise large amounts of money within a short period of time.
Financial opportunists saw this as a great new way of raising capital for busi-
nesses at an early stage (or even at the idea stage) while others saw it as highly
risky, being in unchartered territory and unregulated by financial regulators. The
problem for regulators was multi-fold and one clear issue was its categorization.
The tokens issued at ICOs were used differently and due to their nature, would

1 https://www.forbes.com/sites/outofasia/2017/08/22/the-5-driving-factors-behind-aseans-im-
minent-FinTech-boom/#301d2b845cf3

DOI 10.1515/ 9781547400966-208

xx Preface

be needed to be categorized differently. This is also the view from the Shariah
perspective.
As this contentious area continues to generate deeper discussions and attract
more attention, the greater opportunities actually lie in the applications of the
underlying technology. These opportunities involve the construction of a new
digital ecosystem and innovation ecology that is able to disrupt and shift all exist-
ing ways of doing commerce, right down to its administration and governance.
The applicability of such technologies is now only limited by our imagination,
having been transformed by the start-up ecosystems sprouting all over the world
and investment capital that chase them. No longer are “unicorn” companies
built in certain “Valleys” or the limited geographies of traditionally tech-leading
nations; they are now being built, and launched from non-traditional countries
like Estonia, Kenya and Indonesia.
Islamic finance and its digital economy offer opportunities for Muslims
and non-Muslims as both populations now seek a convergent solution to their
pressing issues—rebuilding trust and confidence in a financial system that had
lost them. Some technologists imagine this world without intermediaries, while
others just want a faster and more efficient way of transacting. Either way, the
challenge comes from accountability, and embedding that sense of accountabil-
ity within the new systems that are being built, based on the sharing of risks and
profits that anchor the nature of our economies, including the sharing economy
of underutilized assets.
The history of Muslim innovation dates back to the Golden Age when the
Muslim world produced great thinkers who shaped the way we looked at the
world, and in particular mathematics. The first mathematical step from the
Greek conception of a static universe was made by Al-Khwarizmi (780–850), the
founder of modern Algebra. Al-Khwarizmi wanted to go from the specific prob-
lems considered by the Indians and Chinese to a more general way of analyzing
problems, and in doing so he created an abstract mathematical language which
is used across the world today. He enhanced the purely arithmethical charac-
ter of numbers as finite magnitudes by demonstrating their possibilities as ele-
ments of infinite manipulations and investigations of properties and relations.
Al-Khwarizmi is also credited for the development of the lattice (or sieve) multi-
plication method of multiplying large numbers, which was later introduced into
Europe by Fibonacci. Al-Khwarizmi carefully laid down analytical solutions of
the various forms of the quadratic equation and illustrated his method of solution
by practical examples—being the basis of what algorithms do in problem-solving.
Since algorithms make up many computational as well as AI solutions today, it is
apt to recognize these important contributions by him.
 Preface xxi

Since there are rotten apples and black sheep even in the virtual world, cyber-
security has become an important component in protecting digital rights and
associated digital assets. This will be an important area of development which is
constantly evolving because of the creativity of hackers and cyber-criminals. That
challenge has been prevalent for the police in the physical world, and it contin-
ues to be a challenge in the virtual world.
One of the key takeaways from this book is that it helps the reader craft a
strategy to embrace digital disruptions so that any agency, corporation, orga-
nization or entity can respond to them in ways that benefit their stakeholders
and people whom they serve. Our sincerest hope is for the readers, especially the
youth and industry leaders, to be able to use our work as a companion to their
digital journey, in traversing the imperceptible terrain of the unknown and pro-
viding sound arguments against change inertia and legacy systems stagnation.
Chapter 1
Introduction

The Rationale for Financial Disruption

The global financial and economic crisis has done a lot of harm to public trust and
confidence in governing and financial institutions, as well as the principles and
the concept itself of the market economy. It has also eroded a lot of public trust in
corporations. The climate of global financial uneasiness can partly be attributed
to the global meltdown of 2008 where governments and other regulatory agents
failed in their responsibility to monitor and steer unrestrained speculative and
damaging financial activities. Outside of the instrumental complexities of collat-
erized debt obligations and credit default swaps, the repeal of the Glass-Steagall
Act,1 or macroanalysis of global imbalances (in levels of savings and investment),
prominent voices have echoed in unison on the erosion of trust and confidence
in the global financial system. The main theme of financial reform in the after-
math of 2008 was basically to encourage greater responsibility after (ex post) and
accountability for risks taken prior (ex ante), in the form of not bailing out the
bankruptcies, and limiting the increasing complexity of financial instruments,
transparency, and answerability for derivative trading to prevent investment
managers from making enormous bets with other peoples’ money, among other
improvements.
In response to the deteriorating fiscal and banking conditions in some
countries, and increased financial fragmentation, major governments like the
European Union (EU) and the United States had supplied liquidity at very long
maturity and at low rates to counter the impending risks for their banks. As the
monetary policies struggled to deliver their intended outcomes, credit and eco-
nomic growth were falling, leading to rising unemployment and reduced con-
sumption and investment. The public grew more restless, with increased resent-
ment and decreased confidence in the ability of their governments to tackle the
depressed markets.
This frustration worsened with the bailouts of “too big to fail” entities, and
have resulted in very smart individuals creating ways to invent their own trust

1 The Glass-Steagall Act of 1933 was enacted in response to the stock market crash of 1929. This
bill was repealed in 1999 by the Gramm-Leach-Bliley Act during the Clinton administration be-
cause it was seen as being too restrictive for local banks and businesses to compete with foreign
banks.

DOI 10.1515/9781547400966-001
2 Chapter 1: Introduction

mechanisms through technology. If you look at bitcoin, for example, its block-
chain technology was born out of the need to keep people honest in the absence
of a central authority and designed to be public and allow anyone to partici-
pate. The design sacrificed efficiency in order to ensure that theft would not pay
because rewriting the ledger would require so much computational power. Sub-
sequently, with verifications coming in from various nodes all over the world, a
system like the blockchain has developed a mechanism of trust where two people
who have not met and do not know each other are able to make a transaction
through a technology that has done the checks and instilled a level of trust that
is required in such transactions, by eliminating fraud and margins for fraudu-
lent activities. This is one of the major reasons that disruptions, especially in the
financial industry, are occurring and at a massive scale. Creating a system that is
harder to tamper with and easier to audit will lead to great benefits in an indus-
try that is being increasingly regulated by central authorities. Beyond such ratio-
nale, other additional benefits lie in operational advantages like cost reductions,
improved efficiencies, transparency, and productivity.

Ethics and Technology

Two fundamental concepts in the Islamic worldview that would have significant
implications on economic (including financial) behaviors are the concept of man
as khalifah (vicegerent) and ‘abd (servant/slave). The Qur´an (Surah al-Baqarah,
Qur’an 2:302) mentions that the human being has been created to be a khalifah, a
vicegerent on earth to establish God’s commandments,3 a unique position (with
a mission) not granted to other creations. To be a khalifah, the human being is
endowed with a delegation of authority from God to fulfill “consciously” (not by
force) the divine patterns on earth. He is granted free will to either implement or
annihilate these divine patterns through his actions. He is the only being that can
act contrary to his nature (i.e., not fulfilling God’s primordial command), while no
other creations be it animals, plants, or angels can do so. Human beings are free
to use the bounties and blessings conferred upon them (taskhir), but at the same

2 “And [mention, O Muhammad], when your Lord said to the angels, ‘Indeed, I will make upon
the earth a successive authority.’ They said, ‘Will You place upon it one who causes corruption
therein and sheds blood, while we declare Your praise and sanctify You?’ Allah said, ‘Indeed, I
know that which you do not know.’”
3 Allah’s s.w.t. commandments include establishing justice, fairness, equality, and to fight cor-
ruption, evil, and fraud.
 Ethics and Technology 3

time, they must carry out their duty toward God mainly as an ‘abd (who serve and
worship Him) and khalifah (who holds amanah as God’s representative on the
earth) to isti’mar, that is, to prosper the earth and to create a moral social order
on earth. All man’s actions, including his economic activities, should be viewed
in this complete commitment to God by obeying the prescribed framework.
Another example that shapes the relationship of the ethical concepts that
make up the ethical foundation of Islam is the belief of the connection of dunya
(the present world) and akhirah (the hereafter). Muslims are advised to be very
conscious of this correlation in every action they take and choices they make.
When all economic goals are only directed to the happiness of human beings
in this world, institutions are likely to suffer from immoral sentiments that are
opposed to upholding divine laws meant to benefit human beings. In conven-
tional economics, a rational individual is free to maximize his utility as much as
possible without any moral, social, or religious commitment. Consideration for
a “hereafter” reward and punishment of the consequences of economic choices
and decisions made are not included in such a theory. Instead, an Islamic or more
enlightened or universal concept of justice and responsible viceregency would
constrain an individual maximization of utility in view of the greater good.
The presence of al-jannah (Heaven) and al-jahannam (Hell) provides “the
form of the moral conscience” whenever a man chooses to do anything in this
world. It is the very source of moral values. Man, as long as he lives as a member
of the Muslim community, is morally required to always make choices that are
connected with good and to avoid those that are connected with harm. In fact,
these universal principles also apply to all other religions and value systems.
However, behavioral economics informs us that our choices are also governed
by our emotions as well as situational factors and the environment. Even with
deep moral precepts, our actions are highly influenced by our moods, feelings,
and peer pressure, which may be irrational to moral decision making. As such,
if the prescribed behaviors of the Economic Man can be mechanized in a system
that uses technology to overcome our irrationality, those behaviors that harm the
integrity of the financial system in the long run can be prevented. Technological
advancement may have the ability to limit4 poor decisions and detect and prevent
fraud and deception early before a collapse in trust and confidence occurs again.

4 While we encourage the limits to bad decisions, it does not equate to limiting choices. There
is a difference in removing opportunities for fraudulent activities and leaving room for possible
productive ones like innovation.
4 Chapter 1: Introduction

Digital Transformation and Development

The computing power of digital systems is becoming stronger, faster, and cheaper
at an exponential rate and it is in line with one of the most famous laws, Moore’s
Law,5 that predicted it. Digital Islamic revolution, digitalization, and digital trans-
formation have become the most frequently used words in this last decade, but
especially in the last few years. This term of digital transformation has no uni-
versal definition due to its diversity and it encompasses many dimensions like
digital supply chain, digitalization of services and products, and so on. There
is a plethora of definitions of this term, used to describe the offline-to-online
migration of commercial operations and businesses, including those found in
many published research works. Solis, Li, and Szymanski (2014, p. 7) defined this
term in a concise way in these words: “the realignment of, or new investment
in, advanced technology and business models to more effectively engage digital
customers at every touchpoint in the customer experience lifecycle.” There are
also different terms used in different countries with the same concept like “smart
industry” and “industrial value chain initiative” in Japan, “industrial internet” in
North America and “Industrie 4.0” in Germany and so on (Matzner et al., 2018,
pp. 3–21).
What started as a digital transformation has not been restricted or limited
to a specific industry but has spread to a number of industries, seeking similar
improvements and benefits. This has influence and clout in each and every indus-
try like the health care industry (Belliger & Krieger, 2018), manufacturing industry
(Liere-Netheler, Packmohr, & Vogelsang, 2018; Rüßmann et al., 2015), engineer-
ing, construction, and architecture industries (Boland Jr., Lyytinen, & Yoo, 2007)
and at the top of the list, the banking and financial industry (Kenser, 2018).
The agenda of digitalization has not only received considerable attention
from different industries and businesses, but governments and regulatory
authorities have also had to keep up with the disruption and changed business
environment and markets. They have begun to give importance to and keep
abreast with the new era of digitalization in order to be able to remain relevant
in their fiduciary and “watchdog” duties. The most recent and latest example
of this is the newly formed German government, which emphasized it in their
list of most dedicated items (Liere-Netheler et al., 2018). Unsurprisingly, other
governments are following suit as studies have shown that the use and adoption

5 Moore’s Law is named after Intel cofounder Gordon Moore. He observed in 1965 that tran-
sistors were shrinking so fast that every year twice as many could fit onto a chip while its costs
halved. In 1975 the pace adjusted to a doubling every two years.
 Digital Transformation and Development 5

of information communication technologies (ICTs) by the large number of popu-

lation has a very positive relationship with the gross domestic product (GDP) of
the respective countries (Mićić, 2017).6
Digital transformation is imperative for the financial services industry to
remain competitive and achieve longevity in the market. The survival of finan-
cial institutions is connected with the adoption of innovation, and in embracing
digital transformation, to radically improve efficiency and performance within
the organization (Scardovi, 2017). Digital transformation and new technol-
ogy adoption have changed the way of doing business and channels that offer
banking and financial products and services are more intuitive and trustworthy.
These new ways may be very different from the past and have resulted in reshap-
ing the existing models of businesses and the creation of new innovative ones.
In doing so, the transformations have created new industry and market leaders.
According to Forbes (2018) ranking of the top 100 brands, the top five brands
are from the area of technology. These five top brands are valued at US$585.5
billion. Table 1.1 provides the Forbes ranking and growth of these five giants.

Table 1.1: Forbes Ranking (2018), Top 100 Brands

Rank Brand Brand Value (US$B) 1-Year Change

1 Apple $182.80 +8%

2 Google $132.10 +30%
3 Microsoft $104.90 +21%
4 Facebook $94.80 +29%
5 Amazon $70.90 +31%

In a wider trend, the anecdotal evidence shows that the technological conglom-
erates have been surpassing other industries from the last decade and also in
Forbes rankings in terms of number of brands and value. The most recent report
also shows that the number of technology brands (20%) and their value (US$872.6
billion, 40%) are much greater than other industries (see Figure 1.1). The value of
the financial services industry is only US$160.2 billion with thirteen brands. This
difference of number and value of brands in the tech and financial industries is
due to the difference in strategy toward innovation and digitalization.

6 Mićić (2017) cites different empirical and nonempirical studies that explain the link between
digitalization, ICTs, and the national GDP. This study is based on evidence from European coun-
tries and concludes that digital transformation has positive impact on the GDP of these countries
in terms of growth in productivity, and employment.
6 Chapter 1: Introduction

Retail,
No. of Brands
$119.00 Value US$B
Consumer
Retail, Goods,
9 $124.70
Technology,
20
Consumer Automotive,
Goods, 11 $222.90
Technology,
Automotive, Finance, Finance, $872.60
12 13 $160.20

Figure 1.1: Forbes (2018) 100 Most Valuable Brands List

It was inevitable that technology would meet finance and spawn fintech. The use
of technologies like algorithmic machine learning, collecting massive amounts
of data and interpreting them for decision-making or “crystal-ball” predictions
(predictive analytics), and distributed ledgers (blockchain) in financial industry
will give rise to innovative business models with increased levels of efficiency,
productivity, cost-effectiveness while also improving on customer-centricity. The
most important thing and also a great challenge for both fintech platforms and
financial institutions is to adopt and implement a very pertinent, practical, and
transparent strategy for digital transformation within the organization as well as
in external engagements. This is not only essential to harness the opportunities
afforded by such advancements in technologies, but it communicates the vision
of the organization moving forward into the new digital economy.

Shifts in Customer Behavior

A customers’ journey is the way the customers choose to satisfy their wants
and needs and will typically encompass many different processes (Buckley &
Webster, 2016). Digital transformation is changing the customers’ behaviors in
unimaginable ways, and this changing and influence of digitalization in the lives
and psychology of customers is very significant for all industries, in particular for
the financial services industry.
The new generation’s ways of acting and reacting to situations have also
changed. The younger generation lives in a different world than their parents
lived through. The millennials who are born between 1980 and 2000 encompass
 Shifts in Customer Behavior 7

more than half of the world’s population. They are projected to hold US$7 trillion
as liquid assets in 2020 (Aldridge & Krawciw, 2017). The adoption of technology,
like smartphones and other smart devices is more popular in the millennial gen-
eration and also in digital natives (the generation born after 2000). These youth
prefer digital channels to access services and products, and they can not imagine
life without smartphones or the internet. The recent survey by PwC (2017) about
the digital behavior of customers shows that 46% of the survey respondents use
digital channels, mobiles, tablets, and laptops to access banking services as com-
pared to 27% in 2012. Similarly, the access to banks through brick and mortar
branches has shrunk from 15% to 10%. Increasingly, customers are leaving phys-
ical bank branches and moving to digital channels, which marks a significant
shift in consumer behavior (PwC, 2017).
The digital transformation shift has also changed the expectations and
wants of the customers. Today, customers want banking (or any other service)
from anywhere they are and at any time, regardless of if they are in the office,
or at home in the evenings, or at a beach or in a park at the weekend. This
digital behavior of customers has set a new bar for different services indus-
tries. The industry is trying to fulfill the needs of these digital mindsets by using
omni channels and advanced technologies. The competition among financial
institutions and fintech platforms to provide more customer-centric services is
increasing (Dharmesh, 2016).
In addition, McKinsey7 notes that fintech startups are moving beyond
addressing a customer’s financial needs to offering a wider range of services,
blurring the industry’s boundaries. For example, Social Finance (also known as
SoFi), began offering financial products to students and young professionals but
has since expanded to provide career coaching and networking services. Another
prominent example is Holvi Payment Services, a Finnish start-up acquired by
Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) in 2016, that
began by offering banking services to micro, small, and medium-sized enter-
prises (MSMEs) and expanded to provide other paired offerings, such as an online
sales platform, bookkeeping services, expense-claims systems, and a cash-flow
tracker. The scope of products and services offered by fintech companies is
expanding rapidly, from being focused on payment applications, lending, and
money transfers, their reach now extends into areas that include a broad engage-
ment throughout the value chain. The new offerings cut across a wide range of

7 https://www.mckinsey.com/industries/financial-services/our-insights/bracing-for-seven-crit-
ical-changes-as-fintech-matures
Another random document with
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William of Bauier duke of Holland, whiche was lawfull wife to
Ihon duke of Brabant then liuyng. Which mariage was not
onely woundered at of the common people but also detested
of the nobilitie, and abhorred of the clergie. But suerly the
swete tast, of this plasant mariage, brought after a sower
sauce, bothe to the amorous housbande and to the wanton
wife. Hall.
[723] Feends. N.
[724] So in editions 1578, 87, and Niccols, but appears a
misprint for convicted.
[725] With. N.
[726] Was. N.
[727] Could wake. N.
[728] Of my false foes. N.
[729] A parliament was somoned to be kept at Bery, whether
resorted all the peres of the realme, and emongest them the
duke of Gloucester, whiche on the second daie of the session
was by the lord Beamonde, then highe constable of Englande,
accompanied with the duke of Buckyngham, and other,
arrested, apprehended, and put in warde, and all his
seruauntes sequestred from hym, and xxxii. of the chiefe of
his retinue, were sente to diuerse prisons, to the greate
admiracion of the common people. The duke the night after
hys emprisonement, was found dedde in his bed, and his body
shewed to the lordes and commons, as thoughe he had died
of a palsey or empostome: but all indifferent persons well
knewe that he died of no natural death, but of some violent
force. Hall.
[730] The vnsure. 1578.
[731] They lyue in. 1578.
[732] G. Ferrers. N.
[733] Both the realmes. 1578.
[734] Were the chiefe workers. 1578.
[735] Whan thys was sayd: “Let kyng Jamy go,” quod mayster
Ferrers, “and retourn we to our owne story, and se what
broyles wer among the nobylyty in the kynge’s mynorytye.
How that cardinall Bewford malygneth the estate of good duke
Humfrey the kynge’s vncle and protector of the realme, and by
what driftes he first banisheth his wife from him. And lastly
howe the good duke is murderously made away through
conspiracy of queene Margaret and other: both whose
tragedyes I entend at leysure to declare, for they be notable.”
“Do so, I pray you,” quod another, “but take hede ye demurre
not vpon them. And I to be occupyed the meane tyme, wyll
shew what I haue noted in the duke of Suffolke’s doynges, one
of the chefest of duke Humfrey’s destroyers, who, &c.” 1563,
71. See p. 111, note 1.
[736] Notable death, which he may lament after thys maner.
1559, 63.
[737] And sayling. 1571, 75.
[738] Lord, omitted. 1578.
[739] And procuringe the death of Duke Humfrey of Glocester,
protector of England. 1578.
[740] Anno 1450. added 1571. Anno Dom. N.
[741] Banysht, headed so, and drowned. 1559, 63.
[742] Wherfore good Baldwin. 1578.
[743]

And therfore, Baldwyn, fro thy grave of gryefe

Reiect me not, of wretched prynces chief. 1559, 63.

[744] Or. 1559, 63.

[745] Good hap wyth vyces cannot long agree. 1559, 63.
[746] I am the prynce duke Wyllyam. 1559, 63.
[747] That was so famous in. 1559, 63.
[748] Whose vertuous paynes. 1559, 63.
[749] The. 1559.
[750] Luckly. N.
[751] Though Burgoyne duke had then the praise of all. N.
[752] Ere. N.
[753] Of. 1578.
[754] Help need to sue. N.
[755] And a princely. N.
[756] Heire. N.
[757] And of. 1578.
[758] Hated it. N.
[759] Gaine. N.
[760] Whom. 1559, 63, 71, 78.
[761] Should. 1578.
[762] Deeds. N.
[763] To have. 1559, 63, 71, 75, 78.
[764] The queene, whiche entierly loued the duke, fearynge
that some commocion and trouble might ryse, if he were let
goo vnpuneshed, caused hym to be committed to the towre,
where he was kepte with as muche pleasure as he that was at
large, and oute of all captiuitie. But after that a monethe was
expyred, she ymagenynge the people to bee pacifyed with this
open emprysonment, caused hym both to be deliuered, and
also to be restored to the kynge’s fauour and grace, as muche
as euer he was before that tyme. But this doynge incensed the
furye of the mutable commons, muche more then before:
openly demounsynge and saiyng, that it was a shame to all
the realme, to se such a persone, infected with so many
mysdedes, either to rule about a prince or be had in honor. Of
these wordes sprang dedes, and of this talkyng rose
displeasure, whiche had growen to greate mischiefe, if
politique prouision had not, with all celeritye, resisted the first
fury: for the commons in sundry places of the realme
assembled together, gathered great companies, and elected a
capytayn, whom they called blew berde: but or they had
attempted any enterprise, their headdes were apprehended
and so the members sodainly were dispersed, without any
hurte committed, or perpetrated. Hall.
[765] To adiourne. 1559, 63, 71, 75, 78.
[766]

As I was saylyng toward the coast of Fraunce,

The earle of Deuonshyre’s barke, of lytle pryce. 1559,
63.
[767] Whose captayne toke me by hys valyaunce. 1559, 63.
[768] But led me with hym into. 1559, 63.
[769] Where whan he had recounted me my. 1559, 63.
[770] In causyng. 1559, 63.
[771] On the edge wherof my. 1559, 63.
[772] Fortune wold not, that this flagitious person, shoulde so
escape, for when he shipped in Suffolke, entendynge to be
transported into Fraunce, he was encontered with a shippe of
warre appertaininge to the duke of Excester, the constable of
the towre of London, called the Nicholas of the Toure. The
capitaine of the same barke with small fighte, entered into the
duke’s shippe, and perceiuynge his person present, brought
hym to Douer rode, and there on the one syde of a cocke
bote, caused his heade to be striken of, and left hys body with
the heade vpon the sandes of Douer, whiche corse was there
founde by a chapelayne of his, and conuaied to Wyngfelde
colledge in Suffolke, and there buried. This ende had William
de la Pole, first duke of Suffolke, as men iudge, by God’s
punishment: for aboue all thynges he was noted to be the very
organ, engine, and deuiser of the destrucion of Humfrey the
good duke of Gloucester, and so the bloudde of the innocente
man was with his dolorous deathe, recompensed and
punished. Hall.
[773]

A pyteous ende, and therefore, Baldwyn, warne

All pyers and prynces, to abhorre vntroth,
For vycyous grayne must cum to fowl endes barne:
Who brueth breach of lawfull bond or oth,
God wyll ere long, cause all the world to loth:
Was neuer prynce that other dyd oppresse
Vnryghteously, but dyed in distresse. 1559, 63.

[774] Initials added in ed. 1571. W. Baldwine. N.

[775] Wycked man so maruaylously well punyshed. 1559, 63.
[776] Cade beinge but base borne, of no abylytye. 1559, 63.
[777] The passage in brackets added 1571.
[778] Naming himselfe Mortimer, added. 1571.
[779] In June Anno, 1450, added. 1571.
[780] Shall I it fortune call. N.
[781] Lifte. 1578. Rais’d. N.
[782] Vp, added. 1571.
[783] Or strength of stars, which make men high to growe?
1578.
[784] Ere. N.
[785] The will. N.
[786] Be stout. N.
[787] The grace. N.
[788] So. 1559, 63.
[789] Grace be giuen to some man. N.
[790] Yet fewe there be ’mongst men that vse it can. N.
[791] The spirit weake, and will strong. N.
[792] Comes. N.
[793] For fortune is the only foe of those. N.
[794]

Wherefore I thought to be my prince’s mate,

And by some meane his power to abate:
And for that ends Mortimer would be nam’de,
Heyre apparant of England once proclaym’de. 1578.

[795] Because the Kentishe-men be impatient in wronges,

disdainyng of to much oppression and euer desirous of new
chaung, and new fangelnes; the ouerture of this matter was
put furthe firste in Kent, and to the entente that it should not be
knowen that the duke of Yorke or his frendes were the cause
of the sodaine risyng: a certaine yong man of a goodely
stature, and pregnaunt wit, was entised to take vpon hym the
name of Ihon Mortimer allthoughe his name were Iohn Cade.
Hall.
[796] As our enemies. 1578.
[797] Trap. 1559. Tray. 1563. To tary sought. 1578. To stay
him. N.
[798] T’imprison. N.
[799] The, omitted. 1578.
[800] Thynges after my desyer. 1559, 63.
[801] Th’heape. N.
[802] Vpon the thyrde daye of Julii, he caused syr James
Fynes, lorde Say, and threasorer of England, to be broughte to
the Gylde-halle of London, and there to be arrayned: whiche
beyng before the kynge’s iustices put to answere, desyred to
be tryed by his peers, for the lengar delay of his life. The
capytaine perceiuynge hys dilatorie ple, by force took hym
from the officers, and brought him to the standard in Cheape,
and there before his confession ended, caused his head to be
cut of, and pitched it on a hyghe poole, which was openly
borne before him through the stretes. And this cruell tyraunt
not content with the murder of the lorde Say, wente to Myle
ende, and there apprehended syr James Cromer, then shreue
of Kent, and sonne in law to the said lorde Say, and him
without confession or excuse hearde, caused there like wise
to be hedded, and his heade to bee fixed on a poole, and with
these two heddes, this bloody butcher entered into the cytie
agayn, and in despite caused them in euery strete kysse
together, to the greate detestacion of all the beholders. Hall.
[803] And into Sussex rode, all hope was lost. N.
[804] Apprehend. corrected by ed. 1578, all the others read
apprend.
[805] Made men. 1559.
[806] But ere I fell I put. N.
[807] For two longe howres, our combat. 1578.
[808] A gentylman of Kent named Alexander Iden, awayted so
his tyme, that he toke hym in a gardyn in Sussex, where in the
takynge of hym the sayd Iak was slayne: and so beyng deed
was brought into Southwarke the —— day of the moneth of
September, and there lefte in the Kynge’s Benche for that
nyght. And vpon morowe the deed corps was drawen through
the hyghe stretes of the cytie vnto Newgate, and there hedyd
and quarteryd, whose hede was than sent to London brydge
and his iiii quarters were sent to iiii sondry townes of Kent.
Fabyan.
[809] Debities. 1559, 63, 71.
[810] Still, restored from ed. 1563. It is omitted in all those
subsequent.
[811] As, omitted. 1578.
[812] The lord. 1559, 63.
[813] And therefore. 1559, 63. Wherefore, O Baldwine. N.
[814] Must know his state, and. 1578.
[815]

Who lyst to stand at large,

Must folowe skyll, and flye all worldly charge. 1559, 63.

This legend is subscribed W. Baldwine, by Niccols.

[816] Q. for quoth. 1559, 63.
[817] Howe vpryghtly also and howe lyke. 1559, 63.
[818] Determined the office both of magistrates and subiects.
For in deede magistrates. 1578.
[819] Wycked ende. 1559, 63. Shal neuer see good end of hys
attempt. 1578.
[820] Q. 1559, 63.
[821] Nay rather let. 1559, 63.
[822] “Marched towarde London: but the kyng with his power
taried and met him at Saint Albone’s. Where whyle the kyng
and he wer about a treatye, therle of Warwyke set vpon the
king’s army and slew the duke of Somerset, the earle of
Northumberland, the lorde Clyfforde, and other, and in
conclusyon got the victorye, and the duke was made lorde
protector, which so greved the quene and her accomplices,
that pryuye grutches and open dissemblyng neuer ceased tyl
the duke, and his allyes were glad to flee the field and realme,
he in to Irelande, they to Calayes: whence they came agayne
with an army whereof the earle of Salysbury was leader, and
marched toward Coventry wher the king than was and had
gathered an armye to subdue them, and encountred them at
Northampton, and fought and lost the fyelde and was taken
hym selfe, the duke of Buckyngham, the erle of Shrewsbury,
the vycount Beaumont, the lord Egermount, and many other of
his retynue slayn yf no man haue any mind to any of these
noble personages because they were honourably slaine in
battayle, let sum man els take the booke, for I mynde to say
sum what of this duke of Somerset.”
☞ Whyle he was deuysyng thereon, and every man sekyng
farder notes, I loked on the cronicles, and fyndyng styll fyeld
vpon fyeld, and many noblemen slaine, I purposed to haue
ouerpassed all, for I was so wearye that I waxed drowsye and
began in dede to slumber: but my imaginacion styl
prosecutyng this tragical matter, brought me such a fantasye.
Me thought ther stode before vs, a tall man’s body full of
fresshe woundes, but lackyng a head, holdyng by the hande a
goodlye chylde, whose brest was so wounded that his hart
might be seen, his louely face and eyes disfigured with
dropping teares, his heare through horrour standing vpryght,
his mercy crauing handes all to be mangled, and al his body
enbrued with his own bloud. And whan through the gastfulnes
of this pyteous spectacle, I waxed afeard, and turned away my
face, me thought there came a shrekyng voyse out of the
wesand pype of the headles bodye, saying as foloweth. 1559,
63. See Induction to the legend of Plantagenet Duke of York,
p. 183.
[823] Was raysed by some sly drift of the duke of Yorke, who
shortly after, by open war, manifested his title to the crowne
and therefore gathered an army in Wales, and marched
towardes London: and preuentinge the kinge goinge
northward to prepare an army, in the waye at Sayncte
Albanes: who for want of a sufficient power to take the field,
was forced with sutch smal power as he had about him, to
defend the lanes and backsydes of the towne, and to send out
the duke of Buckingham for a treaty, whiche the duke of Yorke
beinge head of the contrary faction, woulde not allow without
fyrst hauinge the duke of Somerset and other at his will,
duringe which treaty Richard Neuill earle of Warwicke, the
stout maintayner of Yorcke’s title, entred the towne by force,
fought a battayle in the high streat, where of the kinge’s part
were slayne the sayd duke of Somerset called Edmond
Beauford, Henry Percy the second. 1578.
[824] Stafford, omitted. 1578.
[825] Besides a great number of knightes, esquiers,
gentlemen and yeomen of the kinge’s houshold and of other
lorde’s seruantes, on whom al the slaughter and bochery fell,
beinge all for the more part vnarmed. But, &c. 1578.
[826] In the edition of 1563, this legend succeeds that of Jane
Shore (see p. 460), and is followed by the Blacksmith (given p.
396), and has the following induction: “This was so well lyked,
that all together exhorted me instantly to procure Maister
Churchyarde to vndertake and to penne as manye moe of the
remaynder as myght by any meanes be attaynted at his
handes. And when I had promysed I wold do my diligence
therein, they asked me if I had any mo tragedyes yet vnred,
for the euenyng was nowe at hand and there were enow
already red to make a handsum volume. “In dede (quod I) I
purpose here to ende the second parte of this volume, for here
endeth the cruel reigne of kyng Rychard the thyrd: And in
another volume hereafter, to dyscourse the resydue from the
begynning of kyng Henry the seventh to the ende of this king
and Queene’s raigne (if God so long will graunte us lyfe) and I
beseche you all that you wyll dylygently performe such storyes
as you haue vndertaken, and procure your frendes such as be
learned, to help vs with the rest: for ther is in this part mater
enough to set al the poetes in England in wurke, and I wold
wishe that every fine apt wyt wold at the leest vndertake one:
For so wold it be a notable volume. For my parte I entende to
be so impudente and importunate a suiter to so manye as I
knowe or maye hereafter be acquaynted wyth, that no excuse
shall serve to shake me of: and I desyre you all to be as
earnest. And to occupye the tyme whyle we be nowe together,
I wyl reade vnto you Edmund the Duke of Somerset, which
must be placed in the fyrst parte: and than the blacke Smyth,
which must serve for thyrde volume, to thende I maye knowe
youre iudgement therein.” “Do so we pray you” (qd. they.)”
[827] Not so ill. 1578.
[828] That some attempts haue neuer happy speede. 1578.
[829] But. 1578.
[830] Out wrestle. 1563.
[831]

Or in skill,
Wynne what they will and wield the world at will. 1578.
[832] Of the first sorte myselfe I count for one. 1578.
[833] Fell despyte. 1563.
[834] Of my workes never could see. 1563.
[835] Sought. 1578.
[836] Bright, and shone like a starre. 1578.
[837] By malice of me. 1563.
[838] His fame. N.
[839]

Normandy yet nethelesse,

Alwayes I wrought that wit might well contriue,
But what bootes it against the streame to striue? 1578.

[840] Maligne and enemy to my trade. 1578.

[841] His, omitted. 1578.
[842] Swarued from Sol vnto. 1578.
[843] All, omitted. 1578.
[844] Well, wanting. 1563.
[845] A bryefe. 1563.
[846] Humfrey to damme that duke most innocent. 1578.
[847] Meane I. 1578.
[848] This worthy prince as a piller longe stood. 1578.
[849] Like to a proppe. 1563. A stronge prop. 1578.
[850]

O mad malice where with obeyeth will,

Was there euer any, whom folly did so nome:
Of all forecast, rigth, reason, wit and skill. 1578.

[851] My coosyn’s bloud, my refuge and my stay. 1578.

[852] Bare the sway. 1578.
[853] So long rebelles no quarelles. 1578.
[854] Once pulled. 1563.
[855]

The duke of Yorke, than stoutly hee stept in,

And chalenged the crowne by color. 1578.

[856] And in. 1563.

[857]

And spred great brutes in England up and downe,

That he of England was the heire true. 1578.

[858] Vsurped had. 1563.

[859] May rue. 1563. Right, by practise most vntrue. 1578.
[860] A chaunge. 1563.
[861] The land. 1563.
[862] Awles wanting one to dread. 1563.
[863] Lawles by weakenes of the heade. 1563.
[864] Where the prynce prest hath alway sword. 1563.
[865]

For dread of whom no man dare do amis,

Whose prince is prest alwayes and sword in hand.
1578.

[866] All enemies. 1578.

[867] In case the sonne had proued sutch a one. 1578.
[868]

Sure had he sitten in the royall throne,

Dreadlesse, and carelesse of common vpror;
But Henrie’s weakenesse appeered more and more.
1578.

[869] And that gave boldenes to the aduers bande. 1563.

Contrary band. 1578.
[870]
 To the gaye gallants of Yorke’s retinue;
Any lowe ground is highly ouerflowen. 1578.

[871] By bold traytours may bee soone remoued. 1578.

[872] That men durst. 1563.
[873] Head poste. 1563.
[874] Then wanting. 1563.
[875] I, omitted. 1563, 78.
[876] By whose malice this. 1578.
[877] To such a noble man. 1563.
[878] Afterward did ban. 1563.
[879] When our poste removed. 1563.
[880] The close traytour then. 1578.
[881] And he that lay hyd came. 1563. From the dark came.
1578.
[882] Whych thyng to compasse him. 1563.
[883] But this to achieue, first it him behoued. 1578.
[884] For, wanting. 1563.
[885] Who once perforce, or practice ill remoued. 1578.
[886] In hyghest authoritie about his grace. 1563.
Next to the prince and other to abase. 1578.
[887] I was the fyrst. 1571, 75, 78.
[888] Therefore he wrought strayght me to displace. 1563.
[889] For by. 1563.
[890] Would. 1563, 78.
[891] Subdue and haue them at his will. 1578.
[892] That geue. 1578.
[893] Loe, to a rebell what it is to geve place. 1563.
[894] So for the fishe when cast forth was the net. 1578.
[895] His plat. 1563.
[896] Common doltes to cause furiously to fret. 1563.
[897] He standing at. 1563.
[898] Graspe would the pray that he long dyd awayte. 1563.
[899] Practises. 1563.
[900] Which nought lesse meant then he. 1563. Who little
ment, that which hee. 1578.
[901] Lurkinge. 1578.
[902] But wanting. 1563.
[903] Then dyd he attempt the people. 1563.
[904] In, wanting. 1563.
[905] The troublous storme yet. N.
[906] How speedily. N.
[907] Like a Judas. 1563.
[908] Thynkinge time. 1578.
[909] Any wanting. 1563.
[910]

S. Albane’s towne, where both our hoastes did meete,

To trye a fielde, was not an equall place,
For we were forst to fight within a streete,
With fewe agaynst many, sutch was the case. 1578.

[911] But thought no whit. 1563. But little thought of. 1578.
[912] More foole hee that. 1578.
[913] The stout earle. N.
[914] Clifford couragious could not. N.
[915] Couragious Clifford could not eschewe the dart. 1578.
[916] Stafford although stout, free went not from this marte.
1563.
[917] Ralph Babthorpe sewer to the king, and Ralph his
sonne, the king’s attorney. Stowe.
[918] Was found very. 1563.
[919]

Babthorp th’attorney, with his skill in law,

In pleeding here appeared very raw. N.

So thus this poore kyng disarmed. 1563.

[920] So thus poore prince disarmed. 1578. King Henrie thus
disarmed. N.
[921] Friends all slayne, wantinge good. 1578.
[922] His friends and followers wanting assistence. N.
[923] Depriued. N.
[924] When all in poste it was by acte decreed. 1563.
[925] The duke of Yorke should haue the regally. 1578.
[926] Then came the duke of Somerset, and all the other
lordes with the kynge’s power, whiche fought a sore and a
cruel battail, in the whiche, many a tall man lost hys lyfe: but
the duke of Yorke sent euer freshe men, to succor the wery,
and put new men in the places of the hurt persones, by
whiche onely pollicie, the kynge’s army was profligat and
dispersed, and all the cheeftaines of the fielde almoste slaine
and brought to confusion. For there died vnder the signe of the
castel, Edmond duke of Somerset, who long before was
warned to eschew all castles, and besyde hym lay Henry the
second erle of Northumberlande, Humfrey erle of Stafford,
sonne to the duke of Buckyngham, Ihon lorde Clifford, &c.
Hall.
[927] A liege to. 1563.
[928] Titles should slepe. 1563.
[929] Realme for theyr tryall to wepe. 1563.
[930] From the heyre female came Yorke and his lede. 1563.
[931] And wee Lancastrians. 1578.
[932] I was in fault, or some about the queen. 1563.
[933] Some, omitted. 1578.
[934]

Thou lookest, Baldwyn, I should myselfe accuse,

Of some subtyle dryft or other lyke thing. 1563.

[935]

To the duke’s foes overmuch adhering,

Though some men’s practise did me thereto bryng.
1563.

[936] Forgeve it me for sore I dyd repent. 1563. To my foes

driftes, which I could not preuent. 1578.
[937] England had never felt. 1563.
[938] Second poynt. 1563.
[939] To any aduice agaynst. 1578.
[940] I and other mo abused. 1578.
[941] Therefore. N.
[942]

Forecast we lackt, which cannot be excused,

Of thinges to come, as soone. 1578.

[943] Cause of. 1578.

[944] Faultes I confesse, as no man liues without. 1578.
[945] I put thee, omitted. 1578.
[946] Thing to me is comfort. 1563.
[947] G. Ferrers. N.
[948] At S. Albane’s when he toke K. Henry prisoner, he was.
1578.
[949] Compare the remainder of this induction with the reading
of the editions of 1559, 63, at p. 166, n. 2.
[950] An. Dom. 1460 added. 1571. Earl of Rutland, an infant,
cruelly murdered, Anno 1460. 1578.
[951] Quoth. 1578.
[952] Trust not in chance, in whom. N.
[953] Of foolish men. N.
[954] O fooles most brute, that. 1578.
[955] How now? why dost thou, Baldwin, hide. 1578.
[956] See this poore boy, whom by the hand I lead. 1578.
[957] With bloud, and teares halinge his body staynd. 1578.
[958]

Rychard I am Plantagenet by name,

Whilom of Yorke the duke of worthy fame. 1573.

[959] Of duke Edmond, thirde. 1578.

[960] Engendred me of Anne, whose course. 1559, 63. This
reading is restored to supply sense to the text. The
subsequent editions have: Engendred mee, whereof the
course.
[961] For when Edmond her brother dyed warde. 1578.
[962]

From Lionel, the third begotten sonne

Of kingly Edward, by descent I came
From Philip hight, his heire we first begun
The crowne as due to vs by right to clame:
And in the end we did obtaine the same,
She was sole heire.——N.

[963] Troublous. 1559. N. Troubles. 1563, 71. Troubles and

daungers. 1578.
[964] And how by might, oft right. 1578.
[965] Duke Henry of Hereforde, called Bolenbrooke. 1578.
[966] Whan traytour like he. 1578.
[967] Kild him in prison, vsurped. 1578.
[968] The crowne by right came to Edmond Mortimer. 1578.
[969] And them of Lancaster. 1578.
[970] Houses. 1578.
[971]

And therefore thought good, to extirpe vs quight. 1578.

Against vs therefore he did all he might. N.

[972] To slay. N.
[973]

His cursed sonne ensued the father’s trade,

And kept my cosin guiltlesse in sure hold
For whom my father ful often did perswade,
With his allies and cousins, that they would
Their kinsman’s right mainteyn, and vphold,
And to depose by pollicy or power,
The heyre of him that was an vsurper. 1578.

[974] Whereof when Henry. 1578.

[975] Thys. 1559, 63, 71.
[976] Had heard, and knew of this conspiracye. 1578.
[977] Sayd that my father was the. 1578.
[978] French kyng hys ally. 1559, 63. French king Charles his
alley. N.
[979]

And hyred by him to worke this trecherye,

For which at Hampton, as it came to passe,
His lyfe he lost, and there beheaded was. 1578.

[980] This. 1559.

[981] To, added. 1571.
[982]
 Thus was the name of Mortimer extinct,
Whose right and title descended vnto me,
Being forst to lyue within a precinct,
For feare I would to other countries flee,
And so beeing at myne owne libertee,
Might haplye moue sedicion or strife,
For guilty hartes can leade no quiet lyfe. 1578.

[983] Whereby great frendes I had my part to take. 1578.

[984]

I by mariage,
Fowre fayre sonnes my yong wife to me bore,
Valiaunt. 1578.

[985] Brothers. 1578.

[986] As none of the kin had any time before. 1578.
[987] Were knights peerelesse. 1578.
[988]

—— Fortune’s frendly grace,

I first began to claime my lawful right,
And my chiefe foes with stoutnesse to deface. 1578.

[989] Al my hole force, I dayly did employ. 1578.

[990] The queene was wholy on hys syde. 1578.
[991] Stroke. 1559.
[992]

in Ireland I did byde,

Ful often driuen of force my head to hyde,
Yet through. 1578.

[993] This doutye duke most deare to king. 1578.

[994]

the queene her partie helde

 Farre in the north, where ouermatcht with power,
My life I lost, in an vnlucky howre. 1578.

[995] Led, omitted. 1578.

[996] And, omitted. 1578.
[997] Got the. 1559, 78.
[998] Next I with kinsfolke. N.
[999]

I at the next was present in persone,

With my chiefe kin, whereas by one and one,
Our souldiers false withdrew away by night,
Vnto our foes and wee put all to flight. 1578.

[1000] Not. The text corrected by editions 1559 and 63. The
others read: no.
[1001] Came I. 1559, 63.
[1002] My. 1559, 63. Make clayme. 1571. New claime to
make. 1578.
[1003] In the kinge’s seate I boldly. 1578.
[1004] Clayming the place, whereat. 1578.
[1005] At last to my demaund agreed. 1578.
[1006] But sith Henry had raigned than so long. 1578.
[1007] And to thend to make my title strong. 1578.
[1008] My, misprint. 1571. Apparant heire of England they me.
1578. In each place heire apparant they me. N.
[1009]

I sped me straight northward, whereas she lay,

Meaning by force to cause her to obay. 1578.

[1010] Bosworth. 1559.

[1011]

She thereof warned, prepared a strong power,

 And ere my men were altogether redye,
To Sandale came, where, in a dismal houre,
I like a beast, so rash was and so heddy
To trie fortune which alwaies is vnsteddy,
With thousands fiue of souldiers to assayle
The double number in campe to their auayle. 1578.

[1012] Th’infant. N.
[1013]

whyle my pore infant

Scarse twelue yere olde, sought way himselfe to saue,
That cruel Clifford, that fel bloudy tyrant,
While the pore chyld with tears did mercy craue,
With dagger sharp his hart a sunder claue. 1578.

[1014]

And set a crowne of paper theruppon,

Which for a sport he sent vnto the quene. 1578.
Which with a painted paper crowne thereon,
He for a present sent vnto the quene. N.

[1015] Might. 1559. To Yorke and set vp to be. 1578. To Yorke

fast by, where that it might. N.
[1016]

In some such place as theuis and traitors bene,

This mocke I had of fortune for rewarde,
After long hope that she wold me regard. 1578.

[1017]

Wherfore, Baldwin, see that thou set her forth

With her slipper pranks so as they may be known,
And warne all princes wel. 1578.

[1018] Sede. 1578

[1019] The gaine no surer but as of dice throwen. 1578.