Sharia Fintech Development in Indonesia

Fintech is a form of financial service innovation other than banks. The more advanced information technology makes fintech as an alternative for the community in financial services. Fintech in Indonesia is divided into conventional and sharia fintech. The development of Islamic fintech in Indonesia continues to increase even though it is still less than conventional fintech. this fundamental difference from Sharia fintech through initial "akad" or agreements between investors and borrowers. Based on data from the Financial Services Authority (OJK) there are 13 licensed and registered Sharia fintech. The types of services performed are payment channel/system, digital banking, online/digital insurance, Peer-to-Peer (P2P) Lending, and crowdfunding. the chance of developing fintech sharia is quite high if it is associated with the number of Muslim population residing in Indonesia which is the largest Muslim population in the world. However, some challenges must be faced including the low level of financial literacy, regulations and sharia fintech policies, as well as service product innovation.