Innovation of The Sharia Banking Industry in Indonesia in The Digital Era

Abstract

Islamic banks are banks that carry out their business activities based on Sharia principles. Islamic banks function as intermediaries between parties who have excess entities and other parties who lack money (first deficit). Excess money through the bank is channeled to other parties for the needs and benefits of both parties. The research method used in this study is a qualitative descriptive method that focuses on individual observations. In this study, it is described accurately from various Scientific Journals of Islamic Economics, Islamic Economics Scientific Journals, of the objects studied to get a more complete picture. The Strategic Role of the Islamic Banking Industry Community economic development must continue to be improved by taking advantage of the various opportunities that exist in the digital financial era, which is important in the use of technology in products. Today's banking competition is getting tougher. Digital technology has changed the changes in many companies where they create various kinds of implementations to benefit from the digitalization of business life as a whole, including digital banking conversions that require many changes to elements of business practices such as management and organizational structure. In sharia banking, various efforts are made to increase the level of compliance to meet sharia standards and sharia governance can be implemented in synergy between bankers and supervisors of sharia DPS and OJK, which have three functions at once, namely protection, assisting in the development of sharia banking and consulting activities related to bank development. sharia.