Inclusivity of Financial Technology: Challenges and Opportunities for Indonesian Islamic Banks in Optimizing Financial Management During the Era of Disruption

Abstract

he purpose of this study is to find out the opportunities and challenges of Islamic banks in  financial technology (FinTech) inclusivity, so that they can optimize financial management in the era of disruption. The research method used in this study uses descriptive qualitative. The data source used is secondary data which can be obtained from the literature by studying, understanding, and identifying journals or books or other sources relevant to this research. The results of this study show that 1) Financial technology can increase  the inclusiveness of  Islamic banks in Indonesia. The implementation of FinTech in the Islamic banking industry will make it easier for businesses to access Islamic bank services and products and apply for financing directly. Challenges faced by rural communities do not have the ability to use financial technology in their areas. 2) The role of FinTech in the Islamic banking sector is very important. First, FinTech has driven financial inclusion. Second, FinTech accelerates sharia transactions and investments. 3) FinTech is able to help increase people's financial literacy and facilitate people's access to various financial products and services. FinTech has material effects related to financial institutions and the provision of financial services.