Analysis of Sharia Innovation Strategic and Efficiency Toward Sustainable Ability Shariah Mandiri Banks in Lampung

Abstract

<jats:p>This study aims to reveal the influence of factors that influence the ability of 'sustainable banks' in facing threats from the internal and external environment, especially financial technology. The novelty of this article lies in the discovery of research results that provide a complex development model in the strategy of Islamic financial institutions in maintaining sustainable capability. Quantitative research methods with Islamic economics approach are chosen to answer the research hypotheses. The 30 sample respondents consisting of Branch Managers and Senior Employees from branch offices and sub-branch offices of the Bank Syariah Mandiri (BSM) Lampung Province are potential primary data used. The results revealed that there was a positive and significant effect of 80.6% between sharia innovation and efficiency on the sustainability of Bank Syariah Mandiri in Lampung Province. While the remaining 18.4% is influenced by other variables not examined in the study. In creating new innovations and efficiencies, BSM Lampung Province must always be in the corridors of Islamic principles as rahmatan lil alamin.</jats:p>

The impact of Fintech on Islamic banking and the collaboration model: a systematic review studies in Indonesia

“…The increase of gadget users, improvement of internet bandwidth, growth of e-commerce in the market, and other online medium transaction inevitably change the nature of banking itself. In Islamic Bank in Lampung, Andri et al (2020) suggested that technology innovation has a positive and significant effect on the bank sustainability and competitive advantage of state-owned Islamic banks (Hidayah et al, 2020). The huge shifting to the technology of everyday life has to be taken into account seriously by Islamic Bank in Indonesia to survive.…”

“…Furthermore, constraints pointed out were poor IT infrastructure, geographical challenge (Ali et al, 2019b), and the lack of aggressivity of Islamic banking in competing with Fintech (Monika et al, 2021). Haris (2020) has studied a collaboration model that potentially attracts new market segments and increases Islamic bank competitiveness (Mazza Basya & Utami Silfia Ayu, 2020; Aisyah, 2018;Hidayah et al, 2020;Andri et al, 2020;Riza, 2019). However, the collaboration risks that have to be mitigated in the future were also mentioned, such as HR risk, operational risk, liquidity risk, and reputation (Hasan & Sunarti, 2019)…”

Indonesian Islamic Commercial Banks’ Efficiency: A Stochastic Frontier Analysis

“…Empirically, Aldeen et al (2020) found that banks' efficiency influenced bank performance in Syria. On the other hand, efficiency can show a bank's ability to maintain its sustainability practices, as being researched by Andri et al (2020) on one of the biggest Islamic banks in Indonesia. Chang et al (2017) states that research on banks' efficiency is crucial to providing useful information for government by respecting existing policies and regulations.…”