The Revolutionary Effect of Sharia Fintech on Empowering MSMEs in Riau Province

Hendra Eka Saputra, Muhammad Nasri Bin Md. Hussain

Abstract


This study in Riau concluded that the adoption of Shariah-compliant financial technology (Fintech) has a positive and significant impact on the empowerment of micro, small, and medium enterprises (MSMEs). Statistical analysis (SEM-PLS) showed that Shariah-compliant fintech contributed 51.3% of the variance in MSME empowerment, and had the greatest impact on market expansion and social and personal empowerment. Therefore, Shariah-compliant fintech is considered compatible with local Islamic values and is recommended for further development by policymakers and financial institutions.

Keywords : Sharia Fintech, MSME Empowerment, Digital Financial

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DOI: https://doi.org/10.21107/aciel.v4i1.798

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