ISLAMIC FINANCIAL TECHNOLOGY (FINTECH) INTEGRATION STRATEGY IN SHARIA BANKING FINANCING

Abstract

Sharia banking entities in Indonesia began in 1983 with the release of the December 1983 Package which contained regulations in the banking sector, one of which contained regulations that supported banks providing credit with 0% interest (zero interest). Then in 1991 Bank Muamalat Indonesia (BMI) was established as the only commercial bank that carries out business activities based on the principle of profit sharing. FinTech or financial technology is a term used to denote companies that offer modern technology in the financial sector. These companies have become a real trend since 2010. This research was conducted in the city of Makassar, specifically the four Sharia Banks in that city, namely PT. Bank BRI Syariah Tbk, PT. Bank Syariah Mandiri, PT. Bank Muamalat and PT. Bank CIMB Niaga Syariah with the type of research is qualitative research. The research results showed that the current financing process in sharia banking is still a manual operational process. Of course, this must be supported by each acceleration system, for example by creating an online application path and its own characteristics. This support cannot be separated from technology which is developing so quickly, making things easier for sharia banking practitioners, and providing optimal service for customers. FinTech has been and is becoming a tool to assist Islamic banks in speed and accuracy in processing data on business operations and product marketing. So far, the Islamic bank financing process is still mostly done manually, with limited human resource skills and the still manual nature of the financing process, which means it takes a long time and is less efficient. Based on the SWOT analysis of FinTech financing in sharia banking, it is known that product development progress can get better, where FinTech can always keep up with developments and easily meet customer needs.

Keywords: FinTech, SWOT Analysis, Sharia Bank.