Factors Influencing Digital Financing for MSMEs at Bank Syariah Indonesia and Its Implications on Theoretical/Practical

Abstract

Islamic banking has developed rapidly, including in Indonesia. Moreover, the merger carried out by Bank Syariah Indonesia (BSI) will lead Indonesia towards better Islamic banking based on the latest technology, namely digital banking. In addition, the economy in Indonesia is strongly supported by MSMEs (Micro, Small and Medium Enterprises), which need funds for their business through financing. We propose to do this research at BSI regarding several factors related to digital financing for micro businesses. This study has ten objectives to analyze the effect of factors/antecedents (accountability, adequacy of funds, accounting information, operational risk, internal control, and credit analysis) on digital financing for micro businesses at BSI. The researcher determines that BSI employees are taken as a population. The sample was determined based on the random sampling method, in which 100 respondents were obtained using the Slovin formula. All respondents were asked to fill out the questionnaire that had been prepared based on indicators of variables. Data analysis was performed using Partial Least Square-Structural Equation Modeling (PLS-SEM). The research results indicate the factors influencing digital financing described in ten hypotheses. Seven of them are affected, and three of them are not affected.