<![CDATA[This study examines changes in the profitability of BMT Al Fithrah following its transformation into BMT Kedinding in Surabaya, Indonesia, subsequent to the implementation of new strategies for managing savings (saving) and financing (funding). The central research question concerns how BMT Kedinding’s savings and funding management practices have influenced the institution’s profitability following its rebranding and institutional strategic changes. In addition, this study explores other factors contributing to profitability, including fund management policies and the quality of relationships between the institution and its customers. The study aims to develop an in-depth understanding of how changes in savings and funding management strategies have affected BMT Kedinding’s profitability, while also examining managerial and operational perspectives that may contribute to improved institutional performance. A qualitative approach employing a case study design was adopted. Data were collected through in-depth interviews with BMT Kedinding’s management and direct observation of the institution’s operational activities. The data were subsequently analyzed using thematic analysis to identify patterns associated with improvements in profitability. The findings indicate that the transformation into BMT Kedinding, accompanied by a more structured and focused approach to savings and funding management, has had a positive impact on the institution’s profitability. This impact is reflected in increased profits and the expansion of branch offices beyond Surabaya. Improvements in service quality, stronger customer relationships, and more efficient fund management have emerged as key factors contributing to higher revenue and greater financial stability. These findings offer practical and academic implications for the development of Islamic microfinance institutions.]]>
