ANALYSIS OF THE IMPACT OF FINTECH ON INNOVATION PRODUCTS IN BANK SYARIAH INDONESIA (BSI) IN THE DIGITAL ECONOMY ERA

ABSTRAK This study aims to analyze the impact of financial technology on product innovation at Bank Syariah Indonesia (BSI) to support operational transformation in the digital economy era. Using a qualitative approach, the research employs documentation analysis, literature review, and in-depth interviews with BSI customers. The main focus is to evaluate how fintech integration improves services, operational efficiency, and BSI’s competitiveness as an Islamic financial institution. The findings reveal that fintech plays a significant role in the digitalization of BSI’s services, such as mobile banking, app-based payments, and digital financing, which have led to enhanced operational efficiency, broader accessibility to Islamic financial services, and increased convenience for customers. These innovations enable BSI to cater to a larger customer base while providing a seamless, user-friendly experience. However, the study also identifies several challenges that need addressing. These include limited network infrastructure in some areas, the need for further enhancement of digital service features, and the strengthening of data security measures to protect customer privacy. In conclusion, the integration of fintech at BSI has a notably positive impact on service quality and the bank’s competitiveness in the modern banking landscape. BSI has great potential to meet the increasingly complex and dynamic needs of its customers. Fintech not only serves as a transformative tool but also as a key foundation to drive Islamic financial inclusion in Indonesia. This also strengthens BSI's position as a leader in the Islamic banking industry in the rapidly growing digital economy era, while creating sustainable and inclusive economic value.