OPTIMIZATION OF DIGITAL ISLAMIC FINANCE IN ENHANCING FINANCIAL INCLUSION AND EMPOWERING COMMUNITY ECONOMIC DEVELOPMENT

Abstract

This research explores the optimization of digital Islamic finance in enhancing financial inclusion and empowering community economic development. Despite its potential, challenges such as inadequate infrastructure, low digital literacy, and regulatory barriers hinder its effective implementation. Using a library research method, the study analyzes existing literature, including books, journals, and reports, to examine the role of digital Islamic finance in improving access to financial services and supporting economic growth. The findings reveal that addressing these barriers through infrastructure development, education, and supportive regulations can optimize digital Islamic finance. The study concludes that digital Islamic finance has the potential to bridge the financial inclusion gap and foster sustainable economic development, particularly for underserved populations.