Fintech Lending: Threat or Opportunity for Sharia Bank In Indonesia?

Ihdi Aini (UIN SYAHADA PADANGSIDIMPUAN, Indonesia)

Abstract


Data on the percentage of financing distribution to sharia banks in Indonesia in the last 5 years has experienced quite slow growth compared to the percentage of loan distribution by fintech lending which has experienced very significant growth, reaching 2,390.4% from 2018 to February 2023. The literature shows that there are two opposing views regarding the influence of fintech lending on banking. On the one hand, fintech plays an important role in increasing financial inclusion, while on the other hand fintech also has a major impact on the financial services industry. The aim of this research is to examine the influence of fintech lending on financing at Islamic banks in Indonesia and to analyze the impact of fintech lending on Islamic banks in Indonesia. This study uses a quantitative approach. The type of data used is secondary data taken from the official website of the Financial Services Authority (OJK) in the form of statistical data on sharia banks and fintech lending. The number of samples used was 60 financial report data obtained from sample selection through purposive sampling. The data analysis technique uses descriptive statistical analysis with a linear regression analysis model. The results of this research show that 88.9% of fintech lending has an influence on sharia bank financing in Indonesia. In the sense that fintech lending companies exist as complements or complements to sharia banks in providing financial loans to the public, therefore fintech lending can be an opportunity for collaboration for the sharia banking industry in Indonesia. This collaboration can be carried out using several patterns or models, including cooperation through cross-selling schemes, channeling, references, shadow investors, outsourcing platforms and fintech consortiums.

Full Text:

PDF

References


Anagnostopoulos, I. (2018). Fintech and regtech: Impact on regulators and banks. Journal of Economics and Business, 100, 7–25. https://doi.org/10.1016/j.jeconbus.2018.07.003.

Ath Thahirah, F., & Kasri, R. A. (2023). Does fintech threaten Islamic banking performance in Indonesia? Journal of Islamic Accounting and Finance Research, 5(1), 65–86. https://doi.org/10.21580/jiafr.2023.5.1.13745

Babaei, G., Giudici, P., & Raffinetti, E. (2023). Explainable FinTech lending. Journal of Economics and Business, 125–126, 106126. https://doi.org/10.1016/j.jeconbus.2023.106126.

Benny Alexandri, M., Usman, I., Narimawati, U., & Taryana, A. (2023). Unraveling the Fintech Landscape: A Systematic Mapping Study on the Impact of Financial Technology Innovation on Investment Decision-Making in ASEAN Banking. Khazanah Sosial, 5(1), 113–124. https://doi.org/10.15575/ks.v5i1.24555.

Darsono, & Antonio, M. S. (2017). Perbankan syariah di Indonesia: Kelembagaan dan kebijakan serta tantangan ke depan (Cetakan ke-1). Rajawali Pers.

Fasano, F., & Cappa, F. (2022). How do banking fintech services affect SME debt? Journal of Economics and Business, 121, 106070. https://doi.org/10.1016/j.jeconbus.2022.106070.

Hadad, S., & Bratianu, C. (2019). Dematerialization of banking products and services in the digital era. Management & Marketing. Challenges for the Knowledge Society, 14(3), 318–337. https://doi.org/10.2478/mmcks-2019-0023.

Haris, M., Iqbal, M., & Hadiyati, P. (2020). Synergy Of Sharia Banks And Financial Technology In The Development Of Micro, Small And Medium Businesses In Indonesia. Jurnal Reviu Akuntansi Dan Keuangan, 10(1), Article 1. https://doi.org/10.22219/jrak.v10i1.11258.

Indonesia, I. B. (2015). Mengenal Operasional Perbankan 2. Gramedia Pustaka Utama.

Jiang, C. (2023). Does automatic bidding mechanism affect herding behavior? Evidence from online P2P lending in China—ScienceDirect. https://www.sciencedirect.com/science/article/abs/pii/S2214635018300704?via%3Dihub.

Junarsin, E., Pelawi, R. Y., Kristanto, J., Marcelin, I., & Pelawi, J. B. (2023). Does fintech lending expansion disturb financial system stability? Evidence from Indonesia. Heliyon, 9(9), e18384. https://doi.org/10.1016/j.heliyon.2023.e18384.

Kohardinata, C., Suhardianto, N., & Tjahjadi, B. (2020). Peer-To-Peer Lending Platform: From Substitution To Complementary For Rural Banks. Business: Theory and Practice, 21(2), 713–722. https://doi.org/10.3846/btp.2020.12606.

McKinsey. (2023). Indonesia and Islamic banking: An interview with Hery Gunardi | McKinsey. https://www.mckinsey.com/capabilities/m-and-a/our-insights/indonesia-and-islamic-banking-an-interview-with-hery-gunardi.

Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81, 102103. https://doi.org/10.1016/j.irfa.2022.102103.

Nurjanah, N. (2023). Perkembangan Lembaga Keuangan Syariah dan Kondisi Makro Ekonomi di Indonesia. Jurnal Ilmiah Ekonomi Islam, 9(1), 346–357. https://www.jurnal.stie-aas.ac.id/index.php/jei/article/view/7985.

Pişkin, M., & Kuş, M. C. (2019). Islamic Online P2P Lending Platform. Procedia Computer Science, 158, 415–419. https://doi.org/10.1016/j.procs.2019.09.070.

Republika. (2020, Oktober 14). 7 Alasan Pentingnya Merger Bank Syariah BUMN. Republika Online. https://republika.co.id/share/qi6gay440.

Sholiha, I. (2023). Efektifitas Perkembangan Bank Syariah di Indonesia Pasca Covid 19. Ekonomica Sharia: Jurnal Pemikiran dan Pengembangan Ekonomi Syariah, 9(1), 37–60. https://ejournal.stebisigm.ac.id/index.php/esha/article/view/675.

Siek, M., & Sutanto, A. (2019). Impact Analysis of Fintech on Banking Industry. 2019 International Conference on Information Management and Technology (ICIMTech), 356–361. https://doi.org/10.1109/ICIMTech.2019.8843778

Sugiyono. (2019). Metode Penelitian Kuantitatif Kualitatif dan R&D. Alfabeta Bandung.

Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and Trends of Financial Technology (Fintech): A Systematic Literature Review. Information, 11(12), 590. https://doi.org/10.3390/info11120590.

Tang, H. (2019). Peer-to-Peer Lenders Versus Banks: Substitutes or Complements? The Review of Financial Studies, 32(5), 1900–1938. https://doi.org/10.1093/rfs/hhy137.

Ulfa, A. (2021). Dampak penggabungan tiga bank syariah di indonesia. Jurnal Ilmiah Ekonomi Islam, 7(2), 1101–1106. https://www.jurnal.stie-aas.ac.id/index.php/jei/article/view/2680.

Wu, T.-P., Wu, H.-C., Liu, S.-B., Hsueh, H.-P., & Wang, C.-M. (2020). Causality Between Peer-To-Peer Lending And Bank Lending In China: Evidence From A Panel Data Approach. The Singapore Economic Review, 65(06), 1537–1557. https://doi.org/10.1142/S0217590820500332

Zhang, Z., Hu, W., & Chang, T. (2019). Nonlinear effects of P2P lending on bank loans in a Panel Smooth Transition Regression model. International Review of Economics & Finance, 59, 468–473. https://doi.org/10.1016/j.iref.2018.10.010.




DOI: https://doi.org/10.24952/jiftech.v2i2.9769

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Ihdi Aini

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

                

  : jiftech@uinsyahada.ac.id     

Universitas Islam Negeri Syekh Ali Hasan Ahmad Addary Padangsidimpuan
Jalan T. Rizal Nurdin Km. 4,5 Sihitang Padangsidimpuan, Sumatera Utara,  Indonesia