Synergy Bank Syariah and Financial Technology in Development of Micro, Small and Medium Businesses in Indonesia

Abstract

The purpose of this study is to analyze the synergy between sharia bank and fintech to effort and develop micro, small and medium enterprises (MSMEs) in Indonesia. Data and information were obtained through interview to expert respondents in their fields such as BNI Syariah, Ammana Fintek Syariah and the Otoritas Jasa Keuangan (OJK). This study has been conducted from July 2018 to March 2019. To provide a deep understanding, this study uses a qualitative approach. The results of the study to show that the opportunity to create synergy between Sharia Bank and Sharia Fintech in order to develop MSMEs in Indonesia is still very wide open. This synergy can be done through several existing patterns or synergy models, including through cross-selling schemes, channeling, references, shadow investors, outsourcing platform and Fintech consortium. The benefits of this synergy include empowering MSMEs, facilitating financial services that are practical, comfortable, safe, have speed, sophistication and up-to-date and are more efficient. The challenges ahead are in terms of human resources competence and support from regulators for policy relaxation. Risks that must be properly mitigated from these synergies, such as the risk of credibility, technology, default and operations.KEYWORDS: Synergy, Sharia Bank, Financial Technology (Fintech), Micro, Small and Medium Enterprises

Islamic Fintech Growth Prospects in Accelerating MSMEs Growth: Evidence in Indonesia

“…Technology development to optimize service and security is the key to fintech development (Hiyanti et al, 2020;Mukhlisin, 2019;Prestama et al, 2019;Rusydiana, 2018). Meanwhile, continuous collaboration in the digital financial ecosystem is believed to be able to accelerate the growth of fintech (Haris et al, 2020;Rusydiana, 2018). Strengthening these factors becomes a complete package to encourage the growth of Islamic fintech in Indonesia.…”

Linkage Sharia Banking and Sharia Fintech to Support Halal Industry in Indonesia

“…The benefit of the synergy between Islamic Banks and Fintech in the context of developing SMEs is that people increasingly have choices in investing or obtaining financing sources that are following Sharia principles; implementation of SMEs empowerment through the provision of training and assistance in the context of increasing SMEs productivity and competitiveness through the participation of Syariah Banks and Syariah Fintech; provide opportunities for the creation of innovative new products for the development of SMEs in Indonesia; stimulate and facilitate practical, convenient and safe financial services as well as improve financial education, especially for areas that have so far been limited to financial services; and encourage financing in the SME segment, so that both Islamic Banks and Syariah Fintech can increase the market share of MSME financing, which as a whole can increase the portion of the financing to SMEs. The challenge of synergy between Islamic Banks and Fintech in increasing the development of SMEs is the need for regulatory support for policy relaxation in developing synergies between Islamic Banks and Sharia Fintech; availability of human resources who have competence in the field of Sharia Fintech (Haris, 2020).…”

The Impact of Synergy Between Icb and Islamic Fintech Lending on the Icb’s Financial Performances

“…The synergy between ICB and Islamic FinTech lending is fresh and such an interesting topic to study scientifically, especially to be able to compare the impact of synergy on the financial performances of each ICB that can be used as one reflection of the success of the synergy and indicators to measure corporate responsibility to the regulator (Aminah, Soewito, Erina, Khairudin and Damayanti, 2019). However, studies on this topic were still very rarely as conducted by Chotib, Rifa'i and Hidayat (2019) and Haris, Iqbal and Hadiyati (2020). Both of these studies use qualitative research approach that aims to explain the models of the synergy that can be conducted by ICB and FinTech as well as to formulate the benefits and challenges of synergy between ICB and FinTech.…”