Integrating Open Banking and Islamic Finance: A Qualitative Study of Micro Enterprise Inclusion in Yogyakarta
Abstract
This study explores how open banking enabled digital financial services influence the financial behavior, credit access, and inclusion of micro enterprises in the Special Region of Yogyakarta, Indonesia. Using a qualitative, descriptive exploratory approach through in depth semi structured interviews with micro enterprise owners, fintech providers, Islamic banking officers, regulators, and association representatives, the study identifies four interrelated themes: digital footprints as instruments of empowerment, data sharing and open APIs as facilitators of credit access, Sharia aligned digital services as enablers of trust and adoption, and persistent literacy and infrastructure barriers constraining inclusion. Findings reveal that open banking enhances the visibility and credibility of micro enterprises, enabling more equitable financing opportunities, while Sharia compliance strengthens user confidence and ethical participation. Theoretically, the study integrates Financial Inclusion Theory, the Technology Acceptance framework, and Maqāṣid al-Shariah, proposing a hybrid model of Islamic digital inclusion where technological innovation and ethical responsibility co evolve. Practically, it underscores the need for robust data governance, literacy programs, and Sharia compliant innovation to ensure that digital transformation advances both equity and spiritual accountability. This research contributes novel insights by linking open banking and Islamic finance at the micro enterprise level, demonstrating how digital footprints and faith based trust jointly shape inclusive financial ecosystems in emerging economies.
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