DIGITALIZATION OF ISLAMIC FINANCE AND ITS ROLE IN POVERTY ALLEVIATION: A RECENT LITERATURE REVIEW

Abstrak

Development digital technology has become catalyst transformative in sector Islamic
finance , promising improvement inclusion finance , efficiency services , and transparency
in line with Islamic principles . Review literature systematic (Systematic Literature Review
- SLR ) aim For study in a way deep role and impact digitalization Islamic finance towards
effort alleviation poverty and achievement objective sustainable socio-economic
development . The SLR method ensures identification , evaluation , and synthesis
comprehensive literature​ For produce findings based valid evidence . Research results in
a way comprehensive confirm that digitalization Islamic finance is instrument strategic in
overcome poverty . Contribution mainly divided in two aspects Key : First , Expanding
Access to Financing through the Sharia Fintech model, in particular Peer-to-Peer (P2P)
Sharia Lending and Sharia Crowdfunding . These models proven effective overcome
obstacle structural for Micro, Small and Medium Enterprises (MSMEs), such as constraint
collateral and fees transaction high . With offer financing based for results ( Mudharabah /
Musyarakah ), Sharia Fintech protects public prone to from practice loan based
exploitative usury , so that realize Hifzh al-Mal in Maqashid Sharia . Second , Optimizing
Islamic Social Funds (ZISWAF). Digital transformation is revolutionizing management
Zakat, Infaq , Alms , and Waqf with in a way significant increase collection volume ,
efficiency distribution , as well as transparency through technology Real-time tracking .
Digitalization Productive Qardhul Hasan allows fast distribution of social funds to
mustahik for business capital , directing they going to independence economy ( self-
sufficiency ). More far , implementation model effective such as Microfinance-Digital
Hybrid ( integration of BMT/LKMS with technology ) and Waqf Crowdfunding Productive
show correlation strong with achievement of Sustainable Development Goals (SDG) 1:
Zero Poverty . Although its potential big , there are challenge crucial thing that hinders
optimization role this , including gap digital literacy and Islamic finance in 3T ( Frontier ,
Outermost , Underdeveloped ) areas , as well as the need more regulations​ agile and
integrated For secure innovation instrument social like Digital Waqf . Therefore that ,
research This recommend the need strengthening regulation , development inclusive
digital ecosystem , and improvement programs focused literacy​ For marginal groups . In
general concise , digitalization is catalyst main for inclusion and justice Sharia economy ,
however success full depends on handling proactive to risk literacy and structural .