Synergy Of Sharia Banks and Fintech in Supporting Islamic Monetary Policy in The Digital Era

Abstract

This study aims to analyze the synergy between Islamic banks and fintech in supporting Islamic monetary policy in Indonesia. The development of financial technology (fintech) has brought significant changes to the global financial system, including the Islamic financial sector. Using a qualitative approach, this study examines how strategic collaboration between Islamic financial institutions and fintech service providers can strengthen the effectiveness of Islamic-based monetary policy. Data was collected through in-depth interviews with Islamic banking practitioners, fintech players, and Islamic financial regulators. The results indicate that synergy between Islamic banks and fintech has the potential to increase financial inclusion, strengthen the transmission of Islamic monetary policy through non-riba instruments, and support the stability of the national financial system. However, challenges arise from regulatory aspects, digital literacy, and Sharia compliance, which still need to be strengthened.