Implementation of Fintech in Online Financing in Sharia Banks: The Role ofInformation Technology and Sharia Principles Compliance

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Banjarmasin— Fintech Speeds Up Sharia Online Financing, but Riba and Gharar Risks Still Remain. Research conducted by two researchers from Banjarmasin State Polytechnic, Fitria and Aneta Rakhmawati, published in January 2026 in the Contemporary Journal of Applied Sciences (CJAS).

Research conducted by Fitria and Aneta Rakhmawati they show that fintech has clearly improved speed and efficiency in sharia financing—but risks linked to riba and gharar remain a serious issue that cannot be ignored.

Fintech Enters Sharia Banking: Wider Access, Faster Processing

Over the last few years, fintech has transformed the financial ecosystem. Technologies such as digital payments, online financing platforms, and even blockchain-based systems have made transactions faster, more transparent, and less vulnerable to fraud.

According to Fitria and Aneta Rakhmawati, fintech adoption in sharia banking offers two key advantages:

1. Improving operational efficiency
2. Expanding access to financing, especially for people who previously struggled to access conventional banking services

However, sharia banks face an additional layer of responsibility compared to conventional banks: every product and transaction must comply with Islamic values, including the prohibition of riba (interest), gharar (uncertainty), and maysir (gambling/speculation).

Main Findings: Faster Financing, Higher Income

The research recorded several notable changes in sharia banks’ online financing operations.

1) Financing processing time dropped sharply

One of the most striking findings was the reduction in financing approval time:

• Before fintech: average 7 days
• After fintech: reduced to 3 days

This suggests fintech nearly halved the processing time—an improvement that is especially meaningful for SMEs and customers who need quick financing access.

2) Operating income increased

The study also found a clear increase in operating income:

• January 2025: IDR 12.65 billion
• February 2025: IDR 18.89 billion

This rise indicates that fintech-based financing systems may strengthen the business performance of sharia banks within a relatively short period.

A Key Note: Operating Expenses Also Rose

Despite increased income, fintech adoption did not immediately reduce costs.

The study recorded that operating expenses rose to:

• IDR 17.49 billion in February 2025

This means efficiency in speed does not always translate into cost efficiency. The higher expenses may be linked to:

• system development and integration
• cybersecurity requirements
• platform maintenance
• IT-focused workforce needs

Fitria and Aneta emphasize that many sharia banks are still in a costly transition phase where major investment is required to build reliable digital infrastructure.

Assets Fell, Liabilities Fell: Efficiency or Economic Pressure?

The study also showed that financial indicators did not move in a uniform direction.

Total assets declined:

• January 2025: IDR 169.73 billion
• February 2025: IDR 164.69 billion

However, this was accompanied by a decline in liabilities, which may reflect more efficient financial management.

The decline is small, but the authors interpret it as a signal that sharia fintech products still face risks—especially regarding:

• unclear digital contract structures
• uncertainty in transaction processes
• potential hidden riba-like mechanisms

Fitria and Aneta stress that fintech in sharia banking cannot be judged only by speed and efficiency. It must also ensure that contracts (akad) remain clear, transparent, and fully compliant with Islamic principles.

Sharia Supervisory Boards Matter, but Authority and Digital Literacy Issues Persist

In Indonesia’s sharia banking system, compliance is overseen by the Sharia Supervisory Board (DPS). However, the research identified two major limitations:

1) DPS has limited enforcement authority

The study notes that when violations occur, DPS cannot directly impose sanctions. Legal enforcement remains under:

• OJK
• Bank Indonesia (for payment-related cases)

This structure limits DPS’s effectiveness, because it can supervise but cannot always act decisively.

2) Digital literacy gap within DPS

The study also raises an issue rarely discussed openly: the average age of DPS chairpersons in Indonesia is reportedly over 60 years old, which may affect digital literacy levels.

The authors link this to national data showing internet usage among older age groups remains low, creating a generational digital gap that may weaken supervision over complex digital-based sharia financial products.

As a result, sharia fintech operators often rely on DSN-MUI Fatwa No. 117/DSN-MUI/II/2018, but fatwas are not always fully integrated into OJK regulatory frameworks—creating confusion and inconsistent implementation.

What This Means for Society: Faster Access Must Still Be Halal and Transparent

The findings carry direct implications for:

• SMEs needing quick financing
• sharia banking customers who want digital services without riba
• regulators shaping the future of sharia fintech governance

The authors argue that sharia digital banking can only succeed if:

• digital contracts are transparent
• akad structures are clearly defined
• sharia supervision is strengthened
• sharia banks build human resources skilled in both fiqh and technology

In their conclusion, fintech can speed up sharia financing—but without stronger supervision and clearer regulation, it can also open loopholes for non-compliance.

Author Profiles

• ·         Fitria : Politeknik Negeri Banjarmasin
• ·         Aneta Rakhmawati : Politeknik Negeri Banjarmasin

Research Source

Fitria & Aneta Rakhmawati. (2026). Implementation of Fintech in Online Financing in Sharia Banks: The Role of Information Technology and Sharia Principles Compliance. Contemporary Journal of Applied Sciences (CJAS), Vol. 4 No. 1, Januari 2026, hlm. 23–32.
DOI:https://doi.org/10.55927/cjas.v4i1.121                                                                                      official URL: https://ntlformosapublisher.org/index.php/cjas