The Role of Islamic Fintech P2PL in Increasing Inclusion and Financial Literacy of MSMEs

Abstract

This study aims to analyze the role of Islamic financial technology (fintech) peer-to-peer lending (P2PL) in increasing the inclusion and financial literacy of Micro, Small, and Medium Enterprises (MSMEs). The presence of fintech in Indonesia provides various benefits, especially when the unbankable is still widely spread in various regions. No exception for MSME players, P2PL fintech services provides an easier option for them to get access to funding. The research sample is on three P2PL-based fintech that uses Shariah principles in Indonesia. Data were obtained through interviews and relevant literature sources. The analytical method used is descriptive qualitative. The results of the study show that there are at least four roles that Shariah P2PL fintech can do to increase MSMEs financial inclusion, such as: providing digital-based financial services, facilitating financing application requirements, collaborating with various businesses groups, and collaborating with digital ecosystems. Meanwhile, to improve literacy, P2PL fintech socializes to regions, holds seminars and webinars, uses digital media to optimize fintech, and plays an active role in financial inclusion activities organized by various parties.