Digitalization Of Sharia Finance For Generation Z: Opportunities And Challenges

Abstract

Digitalization has changed the financial landscape globally, including in the field of Islamic finance. Generation Z, which is a generation that grew up with digital technology, has great potential in utilizing the digitalization of sharia finance. This research aims to determine the behavior of Generation Z in the development of sharia financial digitalization by discussing the opportunities and challenges that arise along with its development. This research method uses a qualitative methodology with a library approach. The results of the discussion provide an overview of how Generation Z responds to technological developments by considering accessibility in accessing sharia financial products, thereby enabling Generation Z to access financial services anytime and anywhere. Blockchain technology and digital security systems can increase transparency and security in Islamic financial transactions. With challenges, namely the level of sharia financial literacy and technology among Generation Z which still needs to be improved, sharia regulations and government regulations are challenges that must be faced by service providers. This research is devoted to financial digitalization in the Generation Z era. Sharia financial digitalization requires paying attention to the level of public trust through existing products followed by updating the ease of transactions used.