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Determinants of Islamic Financial Institutions on Poverty Reduction: A Systematic Review Al Afif, Rafiq Azzam; Esaputra, Ahmad Baihaqi; Rahmatdi; Ahmadi, Mirzam Arqy
International Journal of Islamic Economics and Finance (IJIEF) Vol. 8 No. 2 (2025): IJIEF Vol 8 (2), July 2025
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/ijief.v8i2.27476

Abstract

This study explores the multifaceted determinants of Islamic Financial Institutions (IFIs) in alleviating poverty by employing a qualitative meta-synthesis approach guided by the ENTREQ protocol. The research synthesizes findings from 23 scholarly articles indexed in Scopus to identify key internal and external factors influencing IFI performance in poverty alleviation. These determinants are systematically categorized into a strategic quadrant model: internal-structural, internal-behavioural, external-structural, and external-behavioural. Internal-structural elements such as institutional capacity, operational models, access to capital, and adherence to Islamic values significantly affect the success of IFIs, while internal-behavioural dimensions highlight the roles of innovation, religiosity, and community-based initiatives. Externally, the legal and policy environment, cultural dynamics, public perception, and economic conditions emerge as critical influences on IFIs’ outreach and effectiveness. The findings reveal that IFIs often face challenges in maintaining their developmental focus due to resource limitations, regulatory gaps, and competitive financial landscapes. Nonetheless, when grounded in Islamic ethical principles and supported by appropriate institutional frameworks, IFIs demonstrate a strong potential to deliver inclusive financial services and uplift marginalized communities. The novelty of this study lies in its integrative approach to consolidating diverse themes into a coherent analytical framework, offering actionable insights for practitioners, regulators, and scholars. It emphasizes that successful poverty alleviation through IFIs requires a synchronized interplay of ethical commitment, institutional readiness, policy support, and grassroots participation. The results contribute to the development of strategic recommendations for enhancing the role of Islamic finance in addressing poverty across different socio-economic and regulatory contexts.
Strengthening Islamic Financial Literacy and Fintech Investment for Diaspora in Turkey Praswati, Aflit Nuryulia; Rahmatdi; Nandya Octanti Pusparini; Nurul Latifatul Inayati; Arief Dwi Saputra,; Syaban Al Musyaffa Ibnu Ahmad
Abdi Psikonomi Vol 6, No 2 (2025): Oktober 2025
Publisher : Universitas Muhammadiyah Surakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/psikonomi.v6i2.12742

Abstract

The Indonesian diaspora in Turkey, particularly students and migrant workers, continues to face challenges in Islamic financial literacy as well as limited access to information on investment opportunities in Indonesia through financial technology (fintech). Such conditions may hinder optimal financial management. To address these issues, this community engagement program was designed to equip the diaspora with an understanding of Islamic financial principles and provide education on investment opportunities through fintech platforms, both sharia-based and conventional. The activities were conducted through interactive seminars, discussions, and mentoring sessions delivered in both online and offline formats, in collaboration with PCIM Turkey, the PPI Turkey community, and Gelin as strategic partners. The program adopted a multidisciplinary approach by involving lecturers from the Faculty of Islamic Studies to deliver counseling on sharia aspects of investment. The implementation stages included program planning, partner coordination, site surveys, seminars, and evaluation through pre-tests and post-tests. The evaluation results demonstrated an increase in participants’ understanding of Islamic financial literacy and fintech utilization. Program documentation was disseminated through social media, the UMS news portal, and the Muhammadiyah news portal, while a social media group was established as a sustainable channel for communication and follow-up mentoring.