PATTERNS OF ISLAMIC FINTECH IMPLEMENTATION: PROBLEMS AND IMPLICATIONS FOR MICRO, SMALL AND MEDIUM ENTERPRISES

Abstract

The development of fintech or financial technology is increasingly developing over time, this has caused public interest, especially micro, small and medium enterprises (MSMEs) to be interested in using it. Fintech is a phenomenon due to an innovation that introduces practicality, convenience, and economical costs. Similar to Sharia fintech which is currently being intensified by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) together with the Financial Services Authority (OJK), the MUI issued a sharia-based product offer from sharia business startups to MSME players. On the other hand, this fintech phenomenon has problems in its application to MSMEs. The method used in this research is a qualitative approach, where a study is descriptive. The results of this study are that Islamic fintech can be a solution, especially for MSME actors by facilitating financial services, fintech is an innovation that aims to provide convenience, speed, and convenience in providing financial assistance. Fintech industry players need to educate the public about legal products and services to protect society from fraud and financial crime. The financial services authority (OJK) will assist regulators in developing and overseeing sharia fintech services. In Islamic fintech, several applications provide MSME financial management service offerings in business whose aim is to increase efficiency in terms of customer service.