Fintech In Indonesia Research Articles

The Nexus of Crowdfunding and e-Wakaf to Islamic Fintech in Indonesia in the Era of Industrial Revolution 5.0

This study analyses the contribution of digitalisation in Islamic finance through the application of Islamic crowdfunding and e-wakaf instruments in supporting the development of Islamic fintech in Indonesia, especially in the era of the Industrial Revolution 5.0. Digitalisation in the Islamic finance sector plays a strategic role in expanding access to financial inclusion and facilitating more effective community involvement in sharia-based economic activities. Using the Robust Least Squares (RLS) method, this study utilises secondary data for the period 2018 to 2023 to evaluate the impact of Islamic crowdfunding and e-wakaf on the growth of Islamic fintech. The results show that Islamic crowdfunding significantly expands access to alternative funding, especially for small and medium enterprises (SMEs), while e-wakaf improves transparency and efficiency of waqf asset management through digital technology. These two instruments simultaneously contribute positively to the strengthening of the Islamic fintech ecosystem in Indonesia, creating a strong foundation for broader and sustainable financial inclusion. The findings provide important perspectives for the development of innovative policies and strategies in advancing the Islamic financial sector in the digital era.

Exploring The Legal Landscape of Islamic Fintech in Indonesia: A Comprehensive Analysis of Policies and Regulations

The rapid growth of Islamic fintech in Indonesia necessitates a comprehensive examination of the policy and regulatory framework from a legal perspective. This study explores the legal landscape of Islamic fintech in Indonesia, analyzing the current policies and regulations governing this emerging sector. Using normative legal research with a statutory approach and conceptual approach. The primary and secondary legal materials, including government reports and scholarly articles, this research evaluates recent policy developments and regulatory initiatives supporting Islamic fintech. It identifies gaps and areas for improvement, drawing from best practices and regulatory approaches adopted by other countries with successful Islamic fintech ecosystems. Based on the findings, this research proposes recommendations to enhance the policy and regulatory framework. These include collaboration between regulatory bodies and industry stakeholders, tailored licensing frameworks, enhanced consumer protection mechanisms, and promotion of innovation in Shariah-compliant financial products and services. This study contributes to understanding the legal landscape of Islamic fintech in Indonesia, offering a comprehensive analysis of existing policies and regulations. By addressing challenges and proposing solutions, it aims to facilitate the growth of Islamic fintech and foster an inclusive and sustainable financial ecosystem in Indonesia.

Growth of Islamic Fintech in Indonesia

Islamic fintech is the latest breakthrough in finance that combines finance and technology using Islamic principles. Opportunities in developing Islamic fintech in Indonesia are also very wide open considering the large population of Indonesia who are Muslims. This research has two main objectives. The first objective of this study is to determine whether there is a difference between Islamic fintech and conventional fintech. The second and third objective is to determine whether Islamic fintech and conventional fintech affect economic growth in Indonesia. Independent T-test analysis is used to test the first objective, while regression analysis is used in this research method to test the second and third objectives. This research is a type of quantitative research. The data used is monthly time series data from January 2019 to December 2022. This research concludes that there are substantial differences between sharia and conventional fintech. This difference is caused by the large difference in the number and scale of sharia and conventional fintech businesses, namely 2%:98%. The impact of sharia fintech on Indonesia's economic growth is very small. The reason is that Sharia fintech in Indonesia is not yet operating optimally due to several obstacles. Apart from that, Indonesia's economic growth is greatly influenced by conventional fintech. This is due to the large number of assets and businesses which contribute 98% of total fintech assets

Exploring the dynamics of fintech usage behavior moderated by customer characteristics in Indonesia

This research examines the factors influencing the adoption of Fintech services in Indonesia, focusing on perceived risk, perceived benefit, perceived usefulness, perceived ease of use, trust, and Fintech usage intention. Data from 317 users of payment Fintech services in Indonesia was collected through a Google Form questionnaire and analyzed using Smart PLS 4.0. The study reveals that perceived usefulness, perceived ease of use, and trust significantly impact Fintech usage intention and subsequent behavior, particularly among millennials and Gen Z. Customer attributes such as age and gender show minimal impact, while education level, especially advanced degrees, strengthens the link between perceived usefulness and intention to use. The results contribute to understanding the Fintech sector in Indonesia and suggest potential areas for future research. The study is limited to payment Fintech in Indonesia and recommends broadening the scope for future research. To enhance future research, it is recommended to broaden the study scope to include various fintech types, expand the geographical coverage for diverse results, and encompass a wider range of ages and education levels among respondents for a more comprehensive understanding of fintech adoption.

THE ROLE OF FINANCIAL TECHNOLOGY IN PROMOTING GROWTH IN ISLAMIC FINANCE IN THE DIGITAL ERA

Financial technology (fintech) has increased and can potentially drive Sharia finance's growth. This study aims to analyze fintech's role in promoting Islamic finance's growth in the digital era. The research method uses a literature study. A descriptive analysis approach involves breaking secondary data in journals, articles, and statistical reports related to the research topic. The results of this study indicate that the adoption of fintech in Sharia finance is predicted to continue to increase, driven by the millennial Muslim population. Fintech provides opportunities for Sharia financial product innovation. However, the challenges of developing Sharia fintech are significant and related to regulations, compliance risk, and human resources. Some examples of Sharia fintech platforms, such as P2P lending and equity crowdfunding, have been quite successful. The prospects for sharia fintech in Indonesia are positive with the support of digital infrastructure and the millennial Muslim population. Regulatory support is needed so that Sharia fintech is truly compliant and can drive the growth of Islamic finance. Sharia fintech has the potential to be a game changer for the development of Islamic finance in Indonesia. Comprehensive support from regulators and stakeholders can realize the optimal implementation of Sharia fintech for inclusive and sustainable Sharia finance expansion.

Perception of the Role of Fintech on Formal Workers During the COVID-19 Pandemic (Study on Construction Workers)

The development of FinTech in Indonesia has had many good impacts, not only for the company but also for the employees within it. Especially during the COVID-19 pandemic, which resulted in limited outdoor mobility. This study aimed to understand the effectiveness of FinTech for formal workers during the COVID-19 pandemic. The qualitative descriptive study was a case study of 40 employees at a construction company in Surabaya. The results of the study showed that FinTech plays an important role for formal workers in companies, including efficiency and facilitating financial services, facilitating funding and transactions, improving the standard of living of employees, as well as planning future investments for the formal workers themselves.
 Keywords: financial technologist, covid19 pandemic, formal workers

Determinants of User Trust in Financial Technology Usage in Indonesia

The objective of this research is to examine the variables that influence the level of user confidence when utilizing Financial Technology (Fintech) in Indonesia. There are six hypotheses tested, each of which links the variables of perceived security, knowledge, ease of use, and user experience with user trust in Fintech. Data was collected from respondents who have used Fintech in Indonesia and analyzed using SmartPLS 4 software. The outcome of the research indicated that security perception significantly and positively influences ease of use, while knowledge has a positive and significant impact on user experience, and user experience positively and significantly affects Trust. Nonetheless, the study found no significant influence of security perception and knowledge on trust. The implication of these results suggests that Fintech companies operating in Indonesia should consider these factors to promote user trust in their services.

Navigating the Landscape of Islamic FinTech: A Comprehensive Literature Review

The primary objective is to provide a comprehensive understanding of the current state and potential growth of Islamic FinTech in Indonesia. Specifically, the study delves into the impact of the COVID-19 pandemic, regulatory considerations, and the role of Sharia principles in shaping the Islamic FinTech landscape. Employing bibliometrics, literature review, and content analysis, the study examines Scopus-indexed documents related to Islamic FinTech. The research uses VOSViewer for network analysis, providing insights into research trends, influential articles, and keyword co-occurrence, thereby contributing to the existing literature on Islamic FinTech. The study identifies four thematic clusters in the global distribution of Islamic FinTech research: (1) Islamic FinTech, (2) Islamic finance, (3) technology, and (4) Islamic economics. Additionally, the research illustrates the surge in Islamic FinTech publications since 2018, indicating growing global interest. Noteworthy is Indonesia's substantial contribution to Islamic FinTech research, reflecting the country's emergence as a significant player in this domain.

Exploring The Legal Landscape of Islamic Fintech in Indonesia: A Comprehensive Analysis of Policies and Regulations.

The rapid growth of Islamic fintech in Indonesia necessitates a comprehensive examination of the policy and regulatory framework from a legal perspective. This study explores the legal landscape of Islamic fintech in Indonesia, analyzing the current policies and regulations governing this emerging sector. Using normative legal research with a statutory approach and conceptual approach. The primary and secondary legal materials, including government reports and scholarly articles, this research evaluates recent policy developments and regulatory initiatives supporting Islamic fintech. It identifies gaps and areas for improvement, drawing from best practices and regulatory approaches adopted by other countries with successful Islamic fintech ecosystems. Based on the findings, this research proposes recommendations to enhance the policy and regulatory framework. These include collaboration between regulatory bodies and industry stakeholders, tailored licensing frameworks, enhanced consumer protection mechanisms, and promotion of innovation in Shariah-compliant financial products and services. This study contributes to understanding the legal landscape of Islamic fintech in Indonesia, offering a comprehensive analysis of existing policies and regulations. By addressing challenges and proposing solutions, it aims to facilitate the growth of Islamic fintech and foster an inclusive and sustainable financial ecosystem in Indonesia.

Financial Technology and Poverty Alleviation in Indonesia During the COVID-19 : Impact Evaluation Analysis

The COVID-19 pandemic has brought significant changes, especially to each country's economic and financial sectors. Economic growth in Indonesia experienced a contraction entering mid-2021. This also impacted limiting economic activity, decreasing household consumption, unemployment risk, and increased poverty. In addition, there are changes in people's behavior, such as digital financing systems, non-cash payment systems, and online buying and selling transaction systems. Efforts to improve the economy are encouraged by stimulating people's economic productivity through adaptation to digital technology developments, especially using digital finance. However, the development of digital finance needs to be supported by public financial literacy and inclusion so that it can positively alleviate poverty. This study aims to analyze the impact of financial technology lending on poverty in Indonesia during the COVID-19 pandemic using instrumental variable analysis (IV) for 2019-202. The results of the study show that fintech lending has a negative effect on the poverty rate. However, it is not significant when other variables are added. E-commerce and the use of credit cards have a negative and significant impact on the poverty rate in Indonesia. In maximizing the role of Fintech in Indonesia, support and cooperation from the government, financial institutions, and various relevant stakeholders are needed.

Is it a true “Burn Money” Strategy to Educate Cashless society? Fintech Analysis as a Means Payment of SMEs in Indonesia

Purpose of this paper: This research aims to analyze the impact of the “burn money” made by Fintech as a means of payment in SMEs that has supported the education to create a cashless society in Indonesia. Methodology: The research uses the literature review method, which is documenting relevant research by quoting authors and years of research. Findings: Consumers can be interested in and ultimately ‘ addicted ‘ to use non-cash payment tools if equipped with various conveniences and benefits. So it can be concluded that the “burn money” strategy conducted by fintech supports the people in Indonesia to form a cashless society. Originality: The importance of conducting a strategy of “burn money” in the form of promotion is important because changing the behavior of consumers is not easy. Limitation: This research only focuses on Indonesia. Fintech is only limited to the three largest Fintech in Indonesia (GOPAY, OVO, and DANA) and focuses on payment services. To conduct further exploration, we can use other methods such as interviews from both the SMEs and the Fintech s in Indonesia to explore or dig deeper into the factors that determine Fintech s to “burn money” to advance the economy of SMEs in Indonesia as a cashless society education.

Evaluasi Perkembangan Fintech Syariah di Indonesia: Studi pada Aspek Regulasi, Permodalan dan Literasi Keuangan

This research is a comprehensive evaluation of the development of Shariah-compliant Financial Technology (Fintech) in Indonesia, focusing on the aspects of regulation, capitalization, and financial literacy. In the face of the rapid growth of the Shariah Fintech sector and the complexity of the challenges it faces, this research aims to provide an in-depth understanding of key factors influencing the industry's development. The research methodology involves qualitative analysis with a case study approach, encompassing the selection of Shariah Fintech entities, interviews with industry representatives and stakeholders, as well as an examination of regulations and related literature. The findings of this research offer a comprehensive overview of the regulatory landscape, capitalization conditions, and the level of financial literacy within the Shariah Fintech ecosystem. The research findings indicate that minimal regulations, capital constraints, and varying levels of financial literacy significantly impact the development of Shariah Fintech in Indonesia. Recommendations resulting from this research include regulatory reforms to create a supportive environment, facilitation of capitalization, strengthening financial literacy, and international collaboration to promote inclusive and sustainable growth of the Shariah Fintech sector in the future.

Linkage of Sharia Banking and Sharia Fintech to Support the Sustainable Development Goals Program

Background In addition to Sharia banking, Islamic finance includes an Islamic financial institution called Sharia Fintech, which is currently under development and whose asset size will reach 128.87 billion rupees in March 2023. Both institutions can have synergistic effects in supporting various economic activities. If all this time Islamic financial institutions stand and run individually, then through synergy it will be easy to achieve goals and contribute to the economy and development.Purpose. This study aims to explain the development of Islamic banking and Islamic fintech in Indonesia. and forming relationships between Islamic banks and Islamic fintech in support of the SDGs.Method. The research method used is a literature review using qualitative methods. The data source used was secondary data, which was processed from existing data. Data collection used the Financial Services Authority's data library and other data relevant to the research topic. We used descriptive qualitative methods to analyze the data and described the development of Islamic banks, the development of Islamic fintech, and the form of collaboration between Islamic banks and Islamic fintech in supporting the SDGs.Results. According to the study, in the development of Islamic banking, from December 2020 to March 2023, assets increased by 33.61% and the number of customers increased by 35%. For Islamic fintech, assets increased by 72.56% during the same period, while Sharia fintech players decreased by 30%. The form of collaboration between Islamic banks and Islamic fintechs can become partners that point the way to financing, especially in the micro-segment.Conclusion. Fintech has the advantage of flexible access, allowing Islamic financial institutions to store funds and distribute finance. Customers who cannot be reached by banks can access Shariah-compliant fintech services. The interconnection of the two can foster economic activity, especially under the SDG agenda: poverty reduction, wealth creation, decent work, economic growth, inequality reduction, and partnership for the goals

Evaluation of Fintech's Impact on Financial Inclusion in Indonesia: A Case Research on the Use of Digital Payment Services

This research puposes to evaluate the impact of fintech on financial inclusion in Indonesia with a focus on the use of digital payment services. Primary data was collected through surveys involving users of digital payment services and secondary data was obtained from reports and publications related to financial inclusion in Indonesia. The research results show that the use of digital payment services through fintech has made a positive contribution to financial inclusion in Indonesia. Fintech has enabled access to financial services for those previously underserved by the traditional banking system. Digital payment services enable easier, faster and safer financial transactions, and provide an affordable alternative to conventional payment methods. However, there are several challenges that need to be overcome to increase financial inclusion through fintech in Indonesia. These challenges include financial literacy, access to technological infrastructure, and transaction security. It is hoped that the results of this research can provide input for the government, regulators and industry players in developing policies and strategies to increase financial inclusion through fintech in Indonesia.

The Effect of Financial Literacy on the Online Loan Users’ Behavior (Danabijak) through Financial Attitude as an Intervening Variable

The presence of Fintech in Indonesia is a warning to conventional institutions included in the financial sector. If the conventional institutions are not able to keep following of growths, the tasks and responsibilities undertaken can be switched. It is because Fintech can provide the services with ease and minimize costs than the services of existing institutions. The purpose of this study was analyzed the effect of financial literacy on the online loan users’ behavior through financial attitudes as an intervening variable. The method of this study used associative method. The data analysis techniques used Smart Partial Least Square (PLS, 3.0). This research used Snowball Sampling Technique. The total of sample respondent was 100 respondents. The results of this study showed that financial literacy had a significant effect on the online loan users’ behavior, financial attitudes significantly influenced the online loan users’ behavior Danabijak. Meanwhile, the financial literacy had no significant effect on financial attitudes. Financial attitude was able to be intervening between financial literacy variables and Danabijak online loan user behavior variables.

Pengembangan Model Crowdfunding Syariah Untuk Pembiayaan UMKM (Studi Pada Platform Fintech Ethis)

The purpose of this study is to determine the development of fintech in Indonesia through the ethical platform using musyarakah contract financing and wakalah contracts. In dealing with problems in this financing can be done by providing several alternative strategies to the problems that occur in the funding that occurs. The type of research used is qualitative research with descriptive methods. The data source obtained from this research is secondary, which is obtained from observations through the Ethis website. Analysis of the data obtained comes from using data reports on the development of fintech in Indonesia. The results of the study show developments from year to year which can be seen from the public's interest in using funding in fintech. This means that there is progress in the use of funding on the ethical platform, therefore public interest in its use is increasing. With the emergence of this can increase public interest and interest in funding in the platform.

Reaksi Pasar Modal Sebelum Dan Sesudah Munculnya Financial Technology (Fintech) Peer To Peer (P2P) Lending Pada Bank Yang Terdaftar Di Bursa Efek Indonesia

The development of innovation in the financial sector, namely fintech, fintech is an abbreviation of financial technology or financial technology. The existence of financial technology has made one of the fastest growing business sectors in the technology sector. With the development of technology and the increase in start-up companies, the development of fintech in Indonesia. Finance in Indonesia has shifted due to a format that can produce solutions and make it easier for consumers, namely the combination of economy and technology (fintech). The purpose of this study is to determine whether there are differences in trading volume activity and abnormal returns on the cooperation between banks listed on the Indonesia Stock Exchange and peer to peer P2P lending financial technology. This study uses secondary data from third-party publications with a total sample of 4 companies. The data analysis technique used is the even study data analysis, normality test and paired t-test hypothesis testing. Based on the research results, there is no significant difference in the volume of stock trading activity (trading volume activity) before and after the collaboration between peer to peer lending financial technology and banks listed on the Indonesia Stock Exchange, there is no significant difference in abnormal returns before and after the existence of cooperation between financial technology peer to peer lending to banks listed on the Indonesia Stock Exchange.

STRATEGI BPR DALAM MENGHADAPI GEMPURAN FINTECH

Rural Banks (BPR) are banks that carry out business activities conventionally or based on syariah principles which in their activities do not provide services in payment traffic. The activities of BPRs are much narrower than those of commercial banks because BPRs are prohibited from accepting demand deposits, foreign exchange and insurance activities. The role of BPR has a significant contribution to the economy in Indonesia. Based on the Indonesian Banking Statistics released by the OJK, the number of rural banks in Indonesia continues to decline. On the other hand, the development and growth of Fintech (Financial Technology) is very fast. The rapid growth of fintech is because this service offers various advantages to make financial transactions more effective and efficient. Based on this, there is an imbalance between the growth of BPR compared to the growth of fintech in Indonesia. Both BPR management and shareholders must anticipate changes and challenges to the BPR business going forward. This study uses a qualitative method by conducting in-depth interviews with BPRs and fintech representatives. The results of the research can be used as a reference both by shareholders and BPR management so that they can continue to survive and grow Keywords: Fintech, BPR, Strategy

A Review of the Implementation of Financial Technology (Fintech) in the Indonesian Agricultural Sector: Issues, Access, and Challenges

Technological developments, especially in the financial sector, are slowly changing the financial industry through digitalization towards fintech. The application of fintech has been introduced to Indonesia in the last few years; however, the existence and development of fintech in Indonesia still needs to be studied further. This review provided a comprehensive overview of farmer technology accessibility, fintech preferences, fintech application impacts, fintech application problems, and challenges in the future. The review data are taken from the primary and secondary data related to fintech from numerous publications in Google Scholar, the interview of Indonesian farmers, and Indonesian Government data, including the Central Statistics Agency. This study confirmed that a fintech provider has been developed in Indonesia. The farmers’ accessibility to fintech was different between urban and rural areas due to the farmers’ education levels and the availability of the infrastructure. Fintech can provide practicality, ease of access, comfort, and cost-effectiveness, and can solve existing problems in Indonesian society. However, several problems arise, including infrastructure and internet access that is less supportive, as well as a lack of education, competent workers, and regulation. Agricultural fintech is a promising business in the future, despite the many challenges that need to be overcome for a stronger agricultural sector.

The Influence of Fintech on Sustainability and Stock Return in Indonesian Banking

The use of fintech in Indonesia still needs to be improved for the needs of the Indonesian people. High and sufficient use of fintech is associated with sustainability and returns on company shares. The aim of this research is to see the effect of fintech on sustainability and returns on company shares. The independent variable in this study is fintech. The dependent variable is sustainability and stock returns while the control variable is company age, leverage, and Big 4. This research was conducted by collecting data from 34 companies in the banking sector in Indonesia over a period of 5 years (2017-2021) and using a panel data regression model. in testing. The results of the research conducted explained that fintech is not significant for stock returns, but has a positive effect on sustainability. Firm age and leverage are not significant, but Big 4 has a positive effect on stock returns. Firm age has a positive effect but leverage and Big 4 do not affect sustainability. The research that has been carried out implies that it is better to increase the number of ATMs to make it easier for customers to make transactions and to select auditors belonging to the Big 4 category so that stock prices can increase.