STRATEGIC ADOPTION OF SHARIA FINTECH FOR BMT BUSINESS COMPETITIVENESS

asapivotalforceinreshapingmicrofinancedynamics.SpecificBackground: Inthecontext of Islamic financial institutions, fintech syariah offers a unique opportunity to enhance competitiveness while maintaining sharia compliance. Knowledge Gap: However, limited empirical exploration exists on how sharia-based fintech is strategically implemented within BMTs, particularly in rural Indonesian settings. Aims: This study investigates the role and optimization of sharia fintech in enhancing the competitiveness of BMT UGT Nusantara Capem Sempu, Banyuwangi. Results: Using a qualitative descriptive method through interviews,observations,anddocumentation,thestudyfindsthatfintechintegrationimproves operationalefficiency,simplifiesfinancingprocesses,andboostsmembertrust.Novelty:The researchhighlightsthecontextualadaptationoffintechsolutionswithinashariamicrofinance institution,addressingbothtechnologicalandcultural-religiousimperatives.Implications: Despite positive impacts, challenges such as digital literacy and infrastructure limitations persist. Strategic recommendations include digital capacity building, deeper fintech collaboration, and continuous innovation to ensure long-term competitiveness in the Islamic microfinance sector.