Syariah Fintech as An Innovative Solution for Transparency and Efficiency in Zakat and Wakaf Management in Indonesia

Abstract

The development of digitalization has brought significant changes in the management of zakat and waqf in the Islamic
economy, by introducing innovations that increase efficiency and transparency through the application of sharia
financial technology. This study aims to examine the contribution of sharia fintech, which involves technologies such
as blockchain, artificial intelligence (AI), and crowdfunding platforms, in increasing effectiveness, transparency, and
accountability in the management of zakat and waqf. Using a descriptive qualitative approach, this study analyzes the
application of the technology in several countries and identifies the challenges and opportunities that exist. The results
show that blockchain technology allows for more transparent and real-time transaction recording, while artificial
intelligence (AI) plays a role in predicting the needs of beneficiaries more precisely. In addition, fintech-based
crowdfunding platforms have expanded public involvement in productive waqf funding. However, the challenges
faced include the limitations of supporting regulations, potential cybersecurity threats, and the low level of digital
literacy among the public. Therefore, collaboration between the government, Islamic financial institutions, and fintech
companies is urgently needed to optimize the potential of sharia fintech, support the achievement of the Sustainable
Development Goals (SDGs), and create a more inclusive and sustainable Islamic financial ecosystem. This research
suggests the importance of strengthening regulations, increasing digital literacy, and improving cooperation between
various stakeholders to realize the potential of sharia fintech in the management of zakat and waqf.