The Role of Islamic Fintech and Digital Data in Improving Financial Inclusion for Halal MSMEs in Indonesia

Abstract

This research aims to examine the role of sharia fintech and digital data utilization in increasing financial inclusion for halal MSMEs in Indonesia. The method used is a literature study with a descriptive qualitative approach. The results showed that Islamic fintech is able to provide wider access to financing to halal MSMEs through digital financing models based on sharia principles such as peer-to-peer lending and crowdfunding. The utilization of digital data and artificial intelligence technology allows for more accurate and efficient analysis of financing eligibility, even for businesses that do not have a formal credit history. Collaboration between fintech providers and the MSME community, as well as increased digital literacy and Islamic finance, has proven to strengthen the Islamic financing ecosystem. Challenges such as low digital literacy and limited infrastructure still need to be overcome to optimize the potential of Islamic fintech. This research recommends strengthening regulations and synergizing between stakeholders to create a fair, inclusive, and sustainable financing system.