The Application of Fintech in Waqf Institutions: Governance Challenges and the Impact of Education Waqf in Indonesia
DOI:
https://doi.org/10.61159/t83g7112Keywords:
Waqf governance; FinTech Application; Islamic Waqf; Digital Waqf Governance Framework.Abstract
Waqf institutions in Indonesia manage assets on a large scale, but ongoing governance issues, such as administrative inefficiencies, limited accountability, and narrow donor reach, hinder their contribution to education financing. This study examines how the adoption of financial technology (FinTech) affects the governance practices and outcomes of educational waqf within waqf institutions in Indonesia. It identifies the structural conditions that support and hinder digital transformation. The researcher used a qualitative design with systematic document analysis of 48 institutional and regulatory sources for the 2019–2025 period, including OJK, BI, Ministry of Religion, and DSN-MUI policy instruments; governance documents and BWI's annual reports; reports of leading waqf bodies; and the platform document of the FinTech waqf provider. Data were analyzed through a six-phase reflective thematic analysis with NVivo 12 encoding. The findings produce four interrelated themes: uneven and still superficial FinTech adoption; a marked improvement in fundraising reach, donor trust, and allocation of educational resources among early adopters; layered barriers in the form of regulatory ambiguity, institutional capacity gaps, low donor digital literacy, and data security concerns; as well as governance prerequisites that institutions and regulators must meet for sustainable transformation. Further analysis shows that FinTech shifts capacity determinants from asset size to governance efficiency, thereby reallocating administrative resources towards programmatic education financing. However, the benefits remain concentrated among early adopters, posing a risk of widening the gap with pesantren-based waqf. The researcher proposes the Digital Waqf Governance Framework (DWGF), a four-pillar model comprising enabling regulation, digital infrastructure, human resources, and stakeholder trust, as a policy instrument to modernize waqf management and prevent widening gaps among institutions.
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