Islamic Fintech: The Engine of Growth of Islamic Economics and Finance

Authors

  • Elida Elfi Barus Institut Syekh Abdul Halim Hasan Binjai
  • Fatimah Zahara Universitas Islam Negeri Sumatera Utara
  • Tuti Sugesti Universitas Dharma Agung Medan
  • Muhammad Syahbudi Universitas Islam Negeri Sumatera Utara Medan
  • Irwan Irawadi Barus Universitas Dian Nusantara Jakarta

DOI:

https://doi.org/10.54471/iqtishoduna.v14i1.3410

Keywords:

islamic economics, finance, fintech

Abstract

Excluding fintech from the business strategy could drive the company out of the market. However, the implementation of fintech in the Islamic banking business has constraints that make it difficult to implement. This study investigates the impact of financial technology developments on the efforts to improve the quality of services in the Islamic economy and finance in Indonesia. In this study, descriptive analysis is combined with a qualitative research methodology. Using interactive models is the method of data analysis that is performed here. The result is that, although the Fintech Shariah authorizes OJK by October 2023, only seven companies, very few compared to conventional fintech in Indonesia, with 94 companies. However, it is very likely to be the answer to the many dissatisfactions with conventional FinTech. Nevertheless, Shariah-based Fintech is highly likely to serve as an alternative solution to the widespread dissatisfaction with conventional platforms, particularly in terms of compliance, trust, and ethical financial practices. The study underscores the importance of strengthening regulatory frameworks, technological capacity, and consumer literacy to accelerate the integration of Fintech within Islamic banking and finance.

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Author Biographies

Elida Elfi Barus, Institut Syekh Abdul Halim Hasan Binjai

Department of Sharia Economics, Faculty of Economics and Islamic Business, Institut Agama Islam Abdul Halim Hasan Binjai, Indonesia

Fatimah Zahara, Universitas Islam Negeri Sumatera Utara

Department of Muamalat, Faculty of Sharia and Law, Universitas Islam Negeri Sumatera Utara Medan, Indonesia

Muhammad Syahbudi, Universitas Islam Negeri Sumatera Utara Medan

Department of Islamic Economics, Faculty of Economics and Islamic Business, Universitas Islam Negeri Sumatera Utara Medan, Indonesia

Irwan Irawadi Barus, Universitas Dian Nusantara Jakarta

Universitas Dian Nusantara Jakarta, Indonesia

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Published

2025-10-04

How to Cite

Barus, Elida Elfi, Fatimah Zahara, Tuti Sugesti, Muhammad Syahbudi, and Irwan Irawadi Barus. “Islamic Fintech: The Engine of Growth of Islamic Economics and Finance”. IQTISHODUNA: Jurnal Ekonomi Islam 14, no. 2 (October 4, 2025): 369–390. Accessed October 12, 2025. https://ejournal.iaisyarifuddin.ac.id/index.php/iqtishoduna/article/view/3410.

Issue

Vol. 14 No. 2 (2025): October (On Progress)

Section

Artikel

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Copyright (c) 2025 Elida Elfi Barus, Fatimah Zahara, Tuti Sugesti, Muhammad Syahbudi, Irwan Irawadi Barus

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