DIGITAL BASED ISLAMIC BOARDING SCHOOL FINANCING INNOVATION: THE POTENTIAL AND CHALLENGES OF IMPLEMENTING FINANCIAL TECHNOLOGY TO INCREASE ECONOMIC INDEPENDENCE

Abstract

The purpose of this study is to examine in depth the potential and challenges of implementing financial technology (fintech) in creating financing innovations that can increase economic independence. This research focuses on digital-based Islamic boarding school financing innovations, specifically the application of financial technology to increase economic independence at the Darussalam Islamic Boarding School in Blokagung, Banyuwangi. The research design uses a qualitative approach with a case study type. This approach was chosen because it allows researchers to explore in depth the context, dynamics, and unique experiences in implementing digital-based financing innovations. The research design uses a qualitative approach with a case study type. Data analysis was conducted using the Miles and Huberman Interactive Model, which includes data reduction, data presentation, verification, and conclusion drawing. The research results show that the implementation of digital-based financing innovation through financial technology can improve the efficiency of fund management and expand the economic access of Islamic boarding school students. The financial digitalization program through the Islamic Boarding School Information System (SIS), a payment application, along with sharia-compliant investments and collaboration with Islamic financial institutions, encourages the economic independence of Islamic boarding schools, increases efficiency, transparency, and accountability, and opens access to capital, strengthening the economic independence of Islamic boarding schools in a sustainable manner. This research contribution provides a model for the implementation of digital-based financial technology in Islamic boarding schools that can be used as a reference for other Islamic educational institutions in increasing economic independence, fund management efficiency, and financial transparency and accountability in a sustainable manner.