Opportunities and Challenges of Fintech (Financial Technology) Development in Indonesia in the Era of Economic Digitalization

Abstract

Advances in information and communication technology have opened up significant opportunities while also presenting new challenges across various sectors, including the financial technology (fintech) industry, which is rapidly growing in Indonesia. This growth offers substantial potential for the future development of fintech. Despite its rapid expansion, the industry still faces several challenges, such as technological limitations, societal conditions, and coordination with relevant stakeholders. This study aims to identify the opportunities and challenges within the fintech industry and formulate strategies to address them. Using a literature study method, library data is analyzed and linked with research findings. The results indicate that fintech provides opportunities for communities to develop businesses, offers convenience and innovation, and reduces the risk of fraud. Furthermore, society is increasingly recognizing the significant potential of fintech in supporting the growth of MSMEs in the future.