HALAL FINTECH AND THE FUTURE OF ISLAMIC MICROFINANCE: TOWARD INCLUSIVE DIGITAL PROSPERITY IN RURAL COMMUNITIES
Abstract
The rapid growth of Halal Fintech has opened new opportunities for advancing Islamic microfinance toward inclusive digital prosperity, particularly in rural communities often marginalized from formal financial systems. This study aims to analyze the influence of Halal Fintech adoption, digital trust, and sharia compliance on financial inclusion and sustainable economic empowerment in rural Indonesia. A quantitative approach was employed using survey data collected from 240 respondents, consisting of micro-entrepreneurs and community-based Islamic microfinance clients. The data were analyzed using Smart Partial Least Squares (SmartPLS 4.0) to test the structural model and the mediating effects of digital literacy and social capital. The results indicate that Halal Fintech adoption and digital trust significantly affect financial inclusion, while sharia compliance strengthens user confidence and long-term participation. Moreover, digital literacy mediates the relationship between fintech utilization and inclusive prosperity outcomes. The findings highlight that integrating Halal Fintech with Islamic microfinance institutions (IMFIs) can create a more inclusive and sustainable digital ecosystem, aligning with Maqasid al-Shariah and the UN Sustainable Development Goals (SDGs). This study contributes to the theoretical framework of Islamic digital finance and provides practical recommendations for policymakers, IMFIs, and fintech developers in enhancing digital inclusion and economic equity in rural areas.
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