The impact of financial technology on transparency of zakat institutions

This study delves into the transformative role of financial technology (fintech) in enhancing the transparency and efficiency of zakat institutions in Indonesia. The advent of fintech has revolutionized various sectors, including charitable giving, and its implications on zakat institutions are profound. The main objective of this research is to understand the impact of fintech on transparency, and how fintech enhances transparency in zakat institutions. The research methodology employed involves a comprehensive analysis of interviews conducted with participants from various zakat institutions across Indonesia, with data analyzed using NVIVO. The research findings reveal that financial technology (fintech) acts as an intermediary in reshaping the operations of zakat institutions in Indonesia. By enhancing visibility, improving donor engagement, streamlining efficiency, and triggering continuous improvement, fintech has revolutionized the way zakat institutions operate. By leveraging fintech tools, zakat institutions can enhance their reporting mechanisms, track the impact of initiatives, and foster a culture of continuous improvement. This integration of technology not only drives operational efficiency but also instills a culture of innovation and adaptability within zakat institutions, ultimately benefiting the communities they serve. This study contributes to the existing literature by shedding light on the transformative impact of fintech on zakat institutions. By emphasizing the importance of transparency, efficiency, and stakeholder engagement, the research highlights how fintech serves as a catalyst for optimizing social welfare initiatives. The insights provided in this study offer a unique perspective on the evolving role of technology in enhancing transparency and effectiveness within zakat institutions, paving the way for future research and strategic advancements in the field of charitable giving.