Contrary to asset growth, the above Islamic banking opportunities, and the presence of fintech above, the level of Islamic financial literacy and inclusion in Indonesian society is still relatively low. According to OJK data (2021) at the end of December 2020 from the 2020 National Financial Literacy and Inclusion Survey (SNLIK) results, the overall national Islamic financial literacy and inclusion levels were 8.11% and 11.06%, respectively. If viewed by sector, the literacy rate and inclusion of Islamic banking reached 6.63% and 9.61%, respectively. This means that in fact people have started using Islamic financial products, but not many understand about Islamic financial products themselves, this is because in Islamic banking there are many foreign terms in it such as mudhorobah, musyarokah, qardhul hasan,
The largest Muslim population, the vast agricultural sector and the well-developed Islamic finance sector are the three inseparable components of the Indonesian economy. Efforts to ground the Islamic economy in these three sectors must continue to be encouraged. The government, scholars, religious leaders, practitioners of sharia economics, practitioners of sharia financial institutions, education practitioners and the Muslim community need to work together to provide inclusive sharia economic education to the wider community,
is "the provision of money or equivalent claims based on the purpose or loan agreement between the bank and other parties which requires the borrower to repay the debt after a certain period of time plus the amount of interest, compensation or profit sharing".
Funding Purpose
The purpose of financing based on sharia principles is to increase job opportunities and economic welfare in accordance with Islamic values.
Such financing must be enjoyed by as many entrepreneurs as possible engaged in industry, agriculture, and trade to support job opportunities and support the production and distribution of goods and services in order to meet domestic and foreign needs.
Sharia Fintech
Finance technology or often abbreviated as fintech is an innovation of a technology to provide better services in finance or banking. Finance technology is the use of technology in the financial system that produces new products, services, technology, and/or business models and can have an impact on monetary stability, financial system stability, and/or efficiency, smoothness, security, and reliability of the payment system.
Finance technology utilize the use of software and digital platforms to provide financial services to consumers. Finance technology has unlimited potential. As a new tool and technology that is developing in the financial industry, fintech can be a challenge faced by old business models and can also be a solution if adopted and used wisely.
Simply put, fintech is a type of company in the field of financial services that is combined with technology. It can also be interpreted as a segment in the startup world that helps to maximize the use of technology to sharpen, transform, and accelerate various aspects of financial services.
So, starting from payment methods, fund transfers, loans, fundraising, to asset management can be done quickly and briefly thanks to the use of modern technology.
So don't be surprised if then financial technology becomes a necessity that can change a person's lifestyle, especially those who are familiar with or struggle in finance and technology.
Providing Financial Services
One of the benefits that may be felt by the public from the presence of financial technology is the ease of financial services. A simple example, if in the past when you wanted to transfer money, then you had to come to an ATM machine or even a bank teller. Meanwhile, with financial
technology, you no longer need to queue because you can already do it via a smartphone. Not only fund/money transfers, fintech also allows you to deposit various bills such as telephone bills, electricity, water, even BPJS.
So, you no longer need to leave the house to do all these transactions.
Fintech Supports Financial Inclusion
Fintechconsidered to be an alternative solution to help achieve the target of financial inclusion, which so far has only reached 49%. Meanwhile, in 2019, the National Council for Financial Inclusion (DKNI) targets inclusion of 75%. As we know, fintech services are generally online-based.
So you can access it more easily at any time as long as you are connected to a capable internet network.
Previous research studies
In the research conducted by Aswar (2017) on the Empirical Analysis of Islamic Financial Inclusiveness in Indonesia, it is proven that the Islamic financial inclusion index in Indonesia is generally low, with an average value of 0.127. This finding means that community groups do not fully use formal financial services, especially as the main source of finance and financing, so policy makers need to increase the availability of Islamic finance by adding and expanding Islamic banking services in Indonesia.
Research conducted by [38] on the Islamic Financing Model for the Agricultural Sector reflects the correct picture of financing the agricultural sector by formulating alternative financing schemes according to the characteristics of agriculture based on the sharia perspective so that it can be used as a sharia banking solution to improve their performance in agricultural financing, in addition to The agricultural products with the obligation of zakat 5% or 10% greater than the assets, namely 2.5%
indicate the potential for large profits in the agricultural sector so that they are feasible to be financed. While research conducted by [18] on the Role of Islamic Banking in Implementing Financial Inclusiveness in Indonesia proves that Islamic banking has great potential in implementing financial inclusion, indicated by significant growth in funding and financing in 2010-2014. The results of the financial ratio analysis also show good performance and financial condition of Islamic banking.
Methodology
This study uses a qualitative approach in this article. According to Bodgan and Taylor, a qualitative approach is an observational step that produces descriptive data that starts from the results of the respondent's interview or the behavior being studied. The type of research applied in
this article is a Document or Text Study type of research. Mudjia Rahardjo describes the study of documents or texts used as studies to discuss further about a research that comes from published records such as articles, books, newspapers, magazines, journals and others to explore someone's thoughts that have been printed on books or manuscripts. published articles.
Data Types and Data Sources
The types and sources of data applied in this article are secondary data. Secondary data is data obtained from variables that have been concentrated and combined previously by other researchers whose structure is historical or story. Secondary data can be found from libraries, educational institutions, and in the form of documents.
Methods of Data Analysis and Synthesis
In qualitative research, the use of data analysis techniques intends to respond to the formulation of the problem described above. Qualitative research obtains data from various respondents who apply methods with various types and are used many times until the data used are very clear.
In this study, data analysis methods using SWOT analysis will be used, related to collaboration strategies between the banking sector, non-bank financial institutions and fintech.A SWOT analysis organizes the main strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple grid bar. This technique was developed by Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Also admits that it is difficult to trace the origins of the acronym SWOT. He cites [9] as stating that SWOT was a concept used by Harvard academics in the 1960s, and [32] attributing SWOT to Igor [3], of the fame of Matrix Ansoff. [5]
considers the contributions of [9], [36]. Again while this is the generally accepted view of thinkers on the topic of SWOT, even the general observer would admit that was not the originator of the concept but the innovator of it. As [15] comments, he recognizes that a series of SWOT/TOWS analyzes has the advantage of a single arbitrary matrix. [35] SWOT to find gaps and matches between competencies and resources and the business environment.