The Role of Sharia Fintech in Improving Halal Financial Inclusion in Msmes in Indonesia

Abstract

The revolution of Islamic financial institutions in technology has become a must because of the progress of technology and information. Collaboration with financial technology (fintech) is expected to encourage the role of sharia-based fintech lending and other sharia fintech in developing the halal product industry in Indonesia. This article aims to explain the role of Islamic fintech in increasing financial inclusion for halal MSMEs in Indonesia. A literature review is a research method. The results obtained are the role of the application of Islamic fintech in increasing financial inclusion by providing access to financing for MSMEs engaged in the halal industry, providing convenience for MSME actors in accessing various types of Islamic bank financial services and encouraging equitable access to public finances that have not been reached by financial institutions, formal and domestic halal industry players. In Indonesia, fintech has contributed to the National Strategy for Financial Inclusion.

The Influence of the Use Financial Technology, Owner Financial Literacy, and Risk Tolerance on the Performance of MSMEs in Indonesia

“…However, MSMEs often face significant challenges in accessing financial services, such as limited access to credit, high transaction costs, and inadequate financial infrastructure (Latifah et al, 2023). FinTech has the potential to address these challenges by providing MSMEs with innovative and affordable financial services, such as mobile banking, digital payments, and online lending (Dewi & Adinugraha, 2023). FinTech can also help MSMEs improve their financial management and performance by providing them with real-time financial data and analytics (Angreyani et al, 2023).…”

The Role of Fintech on Enchancing Financial Literacy and Inclusive Financial Management in MSMEs

“…MSMEs are increasingly adopting fintech products and services, presenting a growing opportunity for fintech companies, traditional financial institutions, and non-financial organizations to support financial management in this sector (Gupta et al, 2022). Moreover, Sharia fintech has been identified as instrumental in advancing financial inclusion for MSMEs in industries like halal products, where traditional banking services may not be readily accessible (Dewi & Adinugraha, 2023). Financial technology, through its accessibility and support mechanisms, has been described as a key player in enhancing financial inclusion within the MSME industry (Candrasari et al, 2022;Rony et al, 2019).…”