Alternative finance refers to financial resources, channels and instruments that have emerged outside the traditional and conventional financial system such as regulated banks and capital markets. Alternative Finance differs from traditional banking or capital market finance in terms of nature of sourcing and servicing. It takes the form of Interest Free Banking and Investments, Participatory Finance Models and models utilizing third party capital by connecting fundraisers directly with funders, reducing or minimizing transactional costs, prohibition of interest and improved market efficiency. Alternative finance has grown in terms of operations and services such that it is today a global industry.

Islamic Banking and Finance, introduced itself as an emerging alternative to conventional banking and finance system has grown rapidly over the last two decades both in Muslim and non-Muslim countries and does play a significant role in the growth of gross domestic product and the socio economic development of nations. The Islamic participatory schemes integrate the assets of lenders and borrowers. They enable Islamic Banks to lend on long term basis to create projects with higher risk-return profiles and, thus, to support sustainable socio-economic development across the globe. Other models of alternative finance include Crowd funding, Online Marketplace Lending, Community Shares, Co-operatives and Community Benefit Societies, Invoice Trading, Zero Interest Banking, Co-operative credit, Self-help Groups, Micro Credit, Chities, Nidhis, etc.

Alternative finance, as a financing source other than conventional banks or stock and bond markets, has gained relevance considering the potential for empowerment and sustainable socio economic development. Models of such financing ranging from Gramin Banks to Islamic Bank are finding success and acceptance in terms of economic change and social development. It is in this context the Faculty of Commerce, School of Distance Education, University of Kerala considered it as a privilege and matter of great pride to host an International Conference on “Alternative Finance and Sustainable Socio Economic Development” during 22- 24 March, 2017 in collaboration with the Indian Association for Islamic Economics (IAFIE), Kerala Chapter. Through this 3 day International Conference researchers, policy makers and academicians can interact and engage in scholarly deliberations for the potential development of alternative finance. We have great pleasure in inviting you to participate in the conference and enrich the proceedings.