The Role Of Islamic Finance In Improving Financial Inclusion Among The Lower-Middle Class In East Lampung

Abstract

Many low-income communities still lack access to formal financial services, even though financial inclusion is a key component in driving inclusive and equitable economic growth. In a predominantly Muslim society, Islamic finance offers a potential alternative because it operates based on the principles of fairness, transparency, and the prohibition of usury, which align with the community's religious values. This study aims to analyze the role of Islamic finance in increasing financial inclusion among lower-middle-class communities in East Lampung Regency. This study used a qualitative approach with descriptive methods, obtaining data through in-depth interviews, observations, and documentation studies with lower-middle-class communities and managers of Islamic financial institutions in East Lampung. The results indicate that Islamic finance plays a significant role in expanding public access to financial services through institutions such as Baitul Maal wat Tamwil (BMT) and Islamic cooperatives, which provide savings products, microfinance, and productive zakat and infaq programs. However, further efforts are needed to improve financial literacy, strengthen the infrastructure of Islamic financial institutions, and digitize Islamic financial services so that its benefits can be felt more widely and equitably.