THE IMPACT OF FINANCIAL TECHNOLOGY ON ISLAMIC BANKING SERVICES IN INDONESIA
Keywords:
financial technology, islamic banking, digital transformation, sharia compliance, financial innovationAbstract
The rapid advancement of Financial Technology (FinTech) has significantly transformed the financial services industry, including the Islamic banking sector in Indonesia. The integration of digital technologies into Islamic banking has created new opportunities to improve financial inclusion, operational efficiency, customer satisfaction, and the accessibility of Sharia-compliant financial services. However, the adoption of FinTech also presents challenges related to cybersecurity, regulatory compliance, digital literacy, and adherence to Islamic financial principles. This study aims to analyze the impact of Financial Technology on Islamic banking services in Indonesia by examining its influence on service quality, customer experience, operational performance, and institutional competitiveness. The research employs a qualitative library research approach by reviewing scholarly articles, books, government reports, and publications from financial regulatory institutions related to FinTech and Islamic banking. The collected data were analyzed using descriptive content analysis to identify major trends, opportunities, and challenges in the digital transformation of Islamic banking. The findings indicate that Financial Technology has contributed positively to the modernization of Islamic banking services through the implementation of mobile banking, internet banking, digital payment systems, peer-to-peer financing, artificial intelligence, and blockchain technology. These innovations have enhanced transaction efficiency, expanded financial access, and strengthened customer engagement. Nevertheless, the study also identifies several obstacles, including cybersecurity risks, regulatory adaptation, digital infrastructure disparities, and the necessity of maintaining Sharia compliance in technological innovation. The study concludes that the successful integration of Financial Technology into Islamic banking requires collaboration among financial institutions, regulators, technology providers, and Sharia supervisory authorities to ensure sustainable, secure, and Sharia-compliant digital financial services. This research contributes to the growing literature on digital transformation in Islamic finance and provides recommendations for strengthening the competitiveness of Islamic banking in the digital era.
References
Ahyani, H., Permana, D., & Abduloh, A. Y. (2020). Dialog Pemikiran Tentang Norma Riba, Bunga Bank, Dan Bagi Hasil di Kalangan Ulama. Kordinat: Jurnal Komunikasi antar Perguruan Tinggi Agama Islam, 19(2), 247-264.
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm. Georgetown Journal of International Law, 47(4), 1271–1319.
Ascarya. (2017). Akad dan produk bank syariah. Rajawali Pers.
Chapra, M. U. (2008). The Islamic vision of development in the light of Maqasid al-Shariah. Islamic Research and Training Institute, Islamic Development Bank.
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
Dusuki, A. W. (2008). Understanding the objectives of Islamic banking: A survey of stakeholders' perspectives. International Journal of Islamic and Middle Eastern Finance and Management, 1(2), 132–148. https://doi.org/10.1108/17538390810880982
Gomber, P., Koch, J. A., & Siering, M. (2018). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537–580. https://doi.org/10.1007/s11573-017-0852-x
Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–43. https://doi.org/10.1016/j.jfs.2017.11.006
Krippendorff, K. (2018). Content analysis: An introduction to its methodology (4th ed.). SAGE Publications.
Lee, I., & Shin, Y. J. (2018). FinTech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46. https://doi.org/10.1016/j.bushor.2017.09.003
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
