Strategic Alliances between Sharia Microfinance Institutions and Financial Technology in Strengthening Small Micro Enterprises (MSEs)

2020 ◽  
Vol 13 (2) ◽  
pp. 240
Author(s):  
Euis Amalia ◽  
Indra Rahmatullah
Keyword(s):  
Business Model ◽  
Strategic Alliances ◽  
Financial Literacy ◽  
Risk Mitigation ◽  
Legal Aspects ◽  
Microfinance Institutions ◽  
Strong Basis ◽  
Microfinance Institution ◽  
Micro Enterprises ◽  
Financial Technology

<p class="Abstract">Sharia microfinance and financial technology have a very significant role as an effective solution for accessing finance for small and micro-enterprises (MSEs). The research aims to investigate the business model used, type of contracts employed, other legal aspects, and the risk mitigation dimension involved. By utilizing qualitative methods and critically analyzing a specific case study related a business model by the alliances between PT Ammana Fintech Sharia and a sharia microfinance institution, BMT Syahida Ikaluin. In generating the data, <em>interviews</em> with several experts and practitioners. The study found that the business model used was based on crowdfunding, compliant with sharia principles dan has a strong basis both in positive law and Islamic edict (<em>fatwa)</em>. The research showed that the strategic alliance between a sharia microfinance institution and financial technology is capable of strengthening access to capital sources for small and micro-enterprises. It also improves community financial literacy and financial inclusion. This research could contribute to the creation of innovative products concerning sharia microfinance and sharia financial technology. Furthermore, it could also become a benchmark in formulating policies to strengthen these strategic institutional alliances.<em></em></p><p class="Abstract"><br /><em></em></p><p class="Abstract"><br /><em></em></p>

scholarly journals Innovation of Risk Mitigation Model for Islamic Equaty-Based Financing in Islamic Microfinance Institutions in Indonesia

2021 ◽  
Vol 124 ◽  
pp. 10004
Author(s):  
Muhammad Pisol Bin Mat Isa ◽  
Naelati Tubastuvi ◽  
Sri Wahyuni ◽  
Maran Marimuthu ◽  
Ridhuan Tony ◽  
...  
Keyword(s):  
Business Strategy ◽  
Financial Institution ◽  
Risk Mitigation ◽  
Structured Interview ◽  
Payment System ◽  
Business Failure ◽  
Microfinance Institutions ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Selection Of

Islamic Microfinance institution (MFI) funded either by government or private financial institutions are playing an instrumental role in discharging business fund to the eligible micro entrepreneurs (ME). The potential of micro entrepreneurs to succeed in their business is always becoming a central issue, this is due to the ability to manage the business strategy in a sustainable manner. The fund transacted in micro financing industry is small in term of quantity, therefore it also generates small profit to both parties MFI and ME, it may not be profitable in the eye of financial institution such as bank or Microfinance institution such as Baitul Mal wa Tamwil, moreover the financing risk is always high because some of the financing given without proper risk mitigation could lead into financial failure. The above reasons have influenced most of the MFIs’s decision to abstain from providing equity-based financing, where the concept very much suitable and workable to bring out the groups of MEs from poverty list in comparison to debt-based financing. Equity-based financing require bigger commitment and intervention from MFI in business in term of coaching, training and managing cash flow of the business. Islamic equity-based financing is about profit and loss sharing (PLS) financing. Where both parties have to bear financial consequences in the event of business failure. The failure in business would cause non-performing financing (NPF) to the financial institution and could effect the financial position for that particular year of report. The continuous NPF to the MFI can risk the company future plan. Thus, this study aimed to explore the mechanism of risk mitigation for equity-based financing which can be adopted by Islamic microfinance institutions around the would. The mechanism used to suggest in area of governance, selection of entreprenuer, financing arrangement, payment system and business business sectors. The study applied content analysis to collect the history data of equity-based financing as offered by BMT and MFIs in Indonesia, the data informed researcher on the success and failure story, the study also applied structured interview with managers who are responsible on risk mitigation. The study found that BMT and MFIs in Indonesia are well-organized, the governance and selection of entreprenuer are palying significant role while the payment system which includes the collatoral against any negligence posits an effective way in mircofinance mitigation model.

scholarly journals Business Model of Islamic Microfinance Institution: Indonesia Case

2017 ◽  
Vol 2 (1) ◽  
pp. 22-30
Author(s):  
Imron Mawardi ◽  
Tika Widiastuti ◽  
Ari Prasetyo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Jel Classification ◽  
Microfinance Institutions ◽  
Social Functions ◽  
Social Entity ◽  
Organizational Orientation ◽  
Microfinance Institution ◽  
Islamic Microfinance

Objective - Islamic Microfinance Institutions (IMFIs) grown very rapidly in the last 10 years in Indonesia. On 2015, the number of IMFIs' reached more than 5,000. As a business and social entity, IMFIs has various business models, the way in providing services and manages the business to achieve its goals. This study aims to determine the business models of IMFIs. Methodology/Technique - This study uses qualitative approach by case study technique of Robert K. Yin. Subjects of this study are IMFIs in Indonesia that selected purposively with managers as a key informant. Findings - The result is the business model of IMFI is determined by eight elements, namely: organizational orientation, business and social functions, the source of capital and allocation, investors and customers, financing usage, types of contract, allocation technique, and membership. Novelty - The elements that determine IMFI, will form a business model of IMFI which determine how IMFI runs its business activities to achieve organization objective. Type of Paper Review Keywords: Islamic Microfinance Institution; Business Model; Social Function. JEL Classification: G21, L22.

scholarly journals The impact of innovation and technology on microfinance sustainable governance

2014 ◽  
Vol 11 (3) ◽  
pp. 420-428 ◽  
Author(s):  
Roberto Moro Visconti ◽  
Maria Cristina Quirici
Keyword(s):  
Business Model ◽  
Social Innovation ◽  
Conflicts Of Interest ◽  
Risk Mitigation ◽  
Microfinance Institutions ◽  
Electronic Payments ◽  
Positive Externalities ◽  
Original Analysis ◽  
Innovation And Technology ◽  
The Impact

Technical or social innovation, concerning also the creation and commercialization of new products, strategies and management, has a deep actual - and especially trendy - impact on microfinance institutions (MFIs), contributing to reshape their business model, with an impact on their overall risk profile. Innovation is mostly an opportunity even for MF risk mitigation, considering its pervasive impact on risk factors. This original analysis is addressing, in a multidisciplinary and innovative comprehensive way, apparently weakly related topics such as MF governance, and IT issues, within recessionary cycles. This hardly investigated frontier faces key trendy issues, which are likely to deeply reengineer the relationship among different stakeholders, as it has already happened, on a different and more sophisticated scale, with traditional banking. To the extent that technology (with access to Internet, social networks, cashless electronic payments, etc.) reshapes the equilibriums among different stakeholders, it is likely to have important – albeit under-investigated - corporate governance consequences, softening the conflicts of interest among stakeholders and reinforcing the business model, making it more resilient during recessions, with positive externalities on both sustainability and outreach.

AKIBAT HUKUM PENDIRIAN LEMBAGA KEUANGAN MIKRO OLEH BADAN HUKUM KOPERASI

2018 ◽  
Vol 4 (1) ◽  
pp. 35-50
Author(s):  
Zakiah Noer
Keyword(s):  
Microfinance Institutions ◽  
Microfinance Institution ◽  
Legal Consequences ◽  
Year 2013

This research is underlined by the existence of cooperative business activities which collect and distribute funds over its members, and also to its non-members. In order to avoid the violation of the provisions in Act No. 25 Year 1992 about Cooperatives, cooperative has established a microfinance institution (MFI) which called as Cooperative MFI. The establishment of microfinance institutions causes the legal consequences on several aspects because of the different regulations between Cooperative and MFI according Act No. 25 Year 1992 about Cooperatives and Act No.1 Year 2013 about Microfinance Institutions

An Empirical Study of New Age Employment in Tour Operations and Allied Areas

2015 ◽  
Vol 8 (1and2) ◽  
Author(s):  
Shyju P. J. ◽  
Rinzing Lama
Keyword(s):  
Information Technology ◽  
Factor Analysis ◽  
Empirical Study ◽  
Business Model ◽  
Management Practices ◽  
Tourism Sector ◽  
Human Resource Management Practices ◽  
Specific Factors ◽  
New Generation ◽  
Micro Enterprises

In this study, the authors makes an attempt to understand the aspirations of the new generation employees in tour operation business and allied areas. It is being attempted with the presumption that the takeover of information technology seeded the concept of micro enterprises in tourism which functions with the business model of low investment and good turnover. The focus was in identifying employee specific factors of encouraging and discouraging in nature in the fast growing tourism sector, especially job attrition and the dynamics of human resource management practices. Factor Analysis, independent sample t-test, multiple regression have been used to establish various relationships. The findings of the study are considered to be relevant since it quantitatively establish the dynamics of employment in tourism in India.

scholarly journals Tourism Development in Post-Industrial Facilities as a Regional Business Model

2021 ◽  
Vol 13 (4) ◽  
pp. 2028
Author(s):  
Marek Jóźwiak ◽  
Patrycja Sieg
Keyword(s):  
Business Model ◽  
Tourism Development ◽  
Legal Aspects ◽  
Industrial Facilities ◽  
Business Partnership ◽  
Post Industrial ◽  
The Impact ◽  
The City

In the article presented, the authors have attempted to define the development of post-industrial facilities, on the example of a thematic trail located in Bydgoszcz, as well as to assess the impact of this route on the city’s attractiveness. The TeH2O thematic trail is an example of a business model that utilizes post-industrial facilities for the development of a business partnership between the route facilities, the objects located in the vicinity, as well as the route participants. The article discusses the use of post-industrial facilities for tourist purposes and the legal aspects associated with the process of transforming such facilities. This paper presents the results of a research carried out on two groups of respondents, i.e., the residents of the city of Bydgoszcz and the tourists who have visited or are about to visit the city of Bydgoszcz. As a result of the research carried out, it has been found that the thematic trail examined affects the attractiveness of the city of Bydgoszcz. Both the respondents from the city of Bydgoszcz as well as the tourists visiting the city acknowledged it. The TeH2O thematic trail is more popular among the inhabitants of Bydgoszcz than among the visitors.

scholarly journals Understanding of Financial Literacy as a Moderating Variable on the Effect of Financial Technology on Financial Inclusion in Lubuklinggau City, Indonesia

2021 ◽  
Vol 3 (2) ◽  
pp. 140-151
Author(s):  
Martini Martini ◽  
Sardiyo Sardiyo ◽  
Reza Septian ◽  
Devi Anggreni sy ◽  
Deni Nurdiansyah
Keyword(s):  
Data Analysis ◽  
Financial Literacy ◽  
Indirect Effects ◽  
Total Sample ◽  
Financial Inclusion ◽  
Direct And Indirect Effects ◽  
Main Requirement ◽  
Indirect Analysis ◽  
The City ◽  
Financial Technology

This study investigates the effect of fintech on financial inclusion, and financial literacy, it was able to influence financial literacy on financial inclusion in Lubuklinggau. The research was conducted by distributing questionnaires to eight districts in the city of Lubuklinggau with a total sample of 401 people who use fintech as the main requirement. Data analysis was carried out with WarpPLS to identify direct and indirect effects on the tested variables. Based on the results, the perception of the ease and effectiveness of using fintech does not affect financial inclusion in Lubuklinggau. People are still not familiar with fintech and consider fintech as a new financial system and not easy to use. The level of risk and interest in using fintech has a significant influence on the financial inclusion variable in the Lubuklinggau. The indirect analysis explains it proves that financial literacy is able to moderate perceptions of the ease of using fintech and reduce the risk of fintech itself on financial inclusion. However, financial literacy is not able to moderate the effectiveness of using fintech and interest in financial inclusion to use of fintech after understanding financial literacy, people become more selective in using fintech.

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