Revenue Journal: Management and Entrepreneurship, vol. 2 (2), pp. 182-194, 2024

Received 15 August 2023 / published 20 December 2024
https://doi.org/10.61650/rjme.v2i2.479

Digital Innovation Strategies in
Sharia Cooperative Business
Transformation: Mobile App Impact
on Financial Performance and
Member Satisfaction
Saiful Bakhri1*, Aunur Rofiq 2, and Dikril Faizun3
1 Sekolah Tinggi Agama Islam Salahuddin Pasuruan, Indonesia
2 Universitas Islam Negeri Maulana Malik Ibrahim Malang, Indonesia
3 Sekolah Tinggi Agama Islam Salahuddin Pasuruan, Indonesia

*Corresponding author: Saifulb223@gmail.com
KEYWORDS
Digital Innovation,
Business Transformation,
Sharia Cooperative,
Mobile App, Financial
Performance

ABSTRACT This study examines digital innovation strategies in transforming Sharia cooperative businesses,
focusing on the impact of mobile app implementation on financial performance and member satisfaction. A
case study was conducted on KSPPS BMT UGT Nusantara, a microfinance sharia institution that has adopted
digital technology in its services. Using a mixed-methods approach, the research analyzes data from in-depth
interviews, member surveys, and institutional financial reports from 2018 to 2023. Findings reveal that
adopting mobile apps significantly increased the cooperative’s fee-based income by an average of 15%
annually since implementation. Factors such as ease of use, transaction security, and incentive programs play
vital roles in technology adoption among members. However, challenges such as digital gaps across member
generations and the need for improved digital literacy were identified. Member satisfaction analysis shows a
20-point increase in Net Promoter Score (NPS), indicating a positive impact of digital innovation on member
loyalty. The study also reveals that digital transformation has driven operational efficiency, with a 5%
decrease in the operating cost to operating income ratio (OER) over the last two years. This research
contributes theoretically and practically to understanding the role of digital innovation in sharia cooperative
business transformation. The findings highlight the importance of comprehensive digital strategies focused
on adopting technology, member digital capability development, and adjusting the business model.
Managerial implications include recommendations for sustained technology investment, digital education
programs for members, and data-driven service development to enhance the value proposition of Sharia
cooperatives in the digital era.
© The Author(s) 2024

1. INTRODUCTION
This study focuses on digital innovation strategies in
the business transformation of Islamic cooperatives
(Bakhri, 2024; Darmayanti et al., 2023; Rwehumbiza,
2020), with an emphasis on the impact of mobile
application implementation on financial performance

and member satisfaction (Piga et al., 2022; H. Solehudin
et al., 2023). In today’s digital era, Islamic cooperatives
face challenges in adapting to ever-evolving technology
(Mantik et al., 2022; Sastypratiwi et al., 2024). One of
the main issues that emerges is the digital divide among

Bakhri et al.││ Digital Innovation Strategies in Sharia Cooperative Business Transformation…

member generations (Sebastián-López & González,
2020; Wahab et al., 2021). The older generation is often
less technologically savvy, while the younger
generation is more open to digital innovation. This
creates barriers to the adoption of technology evenly
among cooperative members, which in turn can affect
the financial performance of the cooperative.
Limited digital literacy is also a significant problem in
optimally using technology. Many members of Islamic
cooperatives do not yet have sufficient skills to use
mobile applications effectively. According to research
conducted by Hidayat et al. (2021), a lack of
understanding of the use of technology can reduce the
effectiveness of implementing mobile applications in
improving cooperatives’ financial performance.
Therefore, cooperatives must provide appropriate
training and resources so members can make good use
of technology.
One of the biggest challenges in integrating new
technologies is maintaining the Sharia values that
underlie cooperative operations. Sharia cooperatives
do not only focus on financial gain (Bhyat et al., 2017;
Shintarahayu & Solehudin, 2022; Zunaidah et al., 2021),
but also on fairness, transparency, and member
welfare. Research by Amin et al. (2022) shows that the
application of technology must consider these values so
as not to sacrifice Sharia principles. Thus, it is
important for Sharia cooperatives to formulate digital
innovation strategies that are in line with these values
so that they can improve financial performance and
member satisfaction.
The main challenge in technology adoption among
members of an organization with diverse digital
backgrounds is ensuring that all members can use the
technology effectively (Rd. H. Solehudin & Amin, 2022).
This is important to avoid a digital divide that can
hinder active participation. In addition, creating a
reliable transaction security system is crucial to
increase member convenience and trust in the digital
services offered. This trust can significantly impact
member satisfaction levels with new services
implemented. Research by Wong et al. (2021) shows
that improving transaction security can reduce
member concerns about fraud risks, thereby
encouraging more expansive use of digital services
(Loviana & Bakhri, 2024). By focusing on inclusive
technology adoption and strong security (Anisak &
Bakhri, 2025), organizations can increase member
satisfaction and encourage more active participation in
digital services. In this context, it is important to
continuously evaluate and adapt the technology used,
so that it remains relevant and meets the needs of all
members, regardless of their digital background.

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Several previous studies serve as important references
in examining the influence of digital innovation in the
financial sector. First, research examines the influence
of digital innovation on business performance in the
financial sector. This study highlights the adoption of
digital technology in general but does not discuss its
impact on specific services in depth. Next, discusses
member satisfaction with digital financial services.
Although this study provides insight into user
satisfaction, the lack of focus on implementing specific
technologies, such as mobile applications, is a
weakness that needs to be considered.
In addition (Budiarti et al., 2024) analyzed the
transformation of Islamic cooperative businesses with
a digital approach. This study provides an overview of
changes in the cooperative business model but does not
specifically highlight the use of mobile applications in
this context. Research by Lex (2021) provides an
essential perspective on the security of digital
transactions in cooperatives. This study emphasizes
the risks and challenges faced but does not explore the
relationship between security and user satisfaction.
Additionally, (R. H. Solehudin, 2024) explored the
impact of blockchain technology on the transparency of
financial transactions. This study is relevant because it
shows how technology can increase trust in the
financial system but lacks discussion of integration
with mobile applications. (Budiarti & Solehudin, 2024)
examined the influence of social media on the
marketing of financial products (Anisak & Bakhri,
2024), which shows the potential of digital platforms to
increase the reach of services but does not relate to
direct user experience. By combining the findings from
these studies, further research is expected to fill the gap
between
technological
innovation
and
its
implementation in digital financial services.
This study offers a new approach by combining digital
innovation strategies and direct member satisfaction
analysis, providing deeper insights into the impact of
mobile applications on fee-based revenue and member
loyalty. In addition, this study also highlights the
importance of digital education and member digital
capacity development in supporting the digital
transformation of Islamic cooperatives (Nuriya &
Bakhri, 2023). By integrating these two aspects, it is
hoped that a better understanding can be created of
how digital technology can improve member
performance and satisfaction, while driving
cooperative
revenue
growth.
This
digital
transformation does not only focus on the
implementation of technology, but also on the
development of human resources who are able to
utilize technology optimally. Through this approach,

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Islamic cooperatives can be better prepared to face
challenges in the digital era and increase their
competitiveness in the financial industry.
Some relevant studies in the context of digital
innovation and member satisfaction include a study by
Kotler and Keller (2016) which examined the effect of
digital marketing on customer satisfaction. They found
that the right marketing strategy can increase customer
engagement, which has an impact on loyalty.
Furthermore, a study by Chaffey (2020) examined the
relationship between mobile applications and business
performance. The results showed that mobile
applications can increase fee-based revenue and
facilitate member interaction.
Research by Prahalad and Ramaswamy (2004) is also
relevant, where they explore co-creation in the context
of customer experience. They emphasize the
importance of involving members in innovation to
create value. Meanwhile, a study by Bhattacharya and
Sen (2003) shows that member loyalty can be
influenced by the social value built by the organization.
Research by McKinsey (2021) highlights the
importance of digital education in enhancing member
capacity. By understanding the impact of mobile
applications and the importance of digital education,
this study aims to provide deeper insights into how
Islamic cooperatives can transform digitally and
increase member satisfaction and loyalty.
Several studies are relevant to analyzing the impact of
mobile applications on Islamic cooperatives and the
relationship between digital technology and member
satisfaction. Research by Aji and Sari (2020) focuses on
the impact of using mobile applications in improving
the operational efficiency of Islamic cooperatives. They
found that this application can speed up the transaction
process and improve services to members. Then,
research by Rahmawati (2021) examined the use of
digital technology in increasing the participation of
Islamic cooperative members. The results showed that
members more involved with digital technology tended
to be more satisfied with the services they received.
Furthermore, research by Setiawan (2022) explored
the relationship between member satisfaction and the

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use of mobile applications in sharia cooperatives. The
results of this study indicate that there is a positive
correlation between the two. Meanwhile, research by
Nugroho (2019) examined the factors influencing the
adoption of digital technology in sharia cooperatives
and found that members' lack of understanding of
technology was a barrier. Another study by Lestari
(2020) highlighted the importance of training for
members in using mobile applications to increase
satisfaction. Overall, these studies indicate a need to
better understand the impact of digital technology on
sharia cooperatives, especially in the context of
member satisfaction.
This study has significant differences compared to
previous studies, especially focusing on mobile
applications as a transformation tool, while previous
studies were more general. To obtain more
comprehensive data, this study adopted a mixed
method that included in-depth interviews and member
surveys, resulting in a deeper understanding of the
challenges and opportunities faced by Islamic
cooperatives. In addition, this study provides more
specific practical implications for managing Islamic
cooperatives in the digital era, which is very relevant to
current technological developments. In conclusion, this
study contributes to understanding the role of digital
innovation in the business transformation of Islamic
cooperatives by emphasizing the importance of a
comprehensive digital strategy, member capacity
development, and business model adjustment. Thus,
this study aims to enhance the value proposition of
Islamic cooperatives, enabling them to adapt and
compete effectively in the ever-evolving digital era.

2. METHODS
2.1 Research Design
This study employs a mixed-methods approach
characterized by an explanatory sequential design. It
integrates quantitative and qualitative methodologies
to achieve a holistic understanding of how mobile
application
implementation
influences
Sharia
cooperative members' financial performance and
satisfaction (see Figure 1).

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Figure 1. Research Design Mobile App

Initially, quantitative data will be collected and
analyzed to identify trends and patterns regarding
financial metrics and member satisfaction levels.
Following this, qualitative methods, such as interviews
and focus groups, will delve deeper into the
experiences and perceptions of the members regarding
the mobile application. This sequential approach allows
for a richer interpretation of the quantitative findings,
providing context and depth to the statistical data.
Recent research indicates that mixed methods can
enhance the reliability and validity of findings in
financial studies, particularly in cooperative
environments (Smith & Jones, 2021; Ahmad & Rahman,
2022). By combining these methodologies, this study
aims to contribute valuable insights into the critical
role of technology in improving financial outcomes and
member satisfaction within Sharia cooperatives,
ultimately paving the way for more effective strategies
in financial management and member engagement in
the Islamic Finance sector.
2.2 Population and Sample
The study’s population was all KSPPS BMT UGT
Nusantara members. The sample was taken using a
purposive sampling technique, focusing on members
who had used the mobile application for at least 6
months. The sample size was determined using the
Slovin formula with a 95% confidence level.
2.3 Data Collection Techniques
Data collection for this study employed a multi-faceted
approach to ensure comprehensive insights into user
satisfaction and the financial performance of the mobile
application. Firstly, an online survey was disseminated
among members to gauge their satisfaction levels and
overall experience with the application, which is a
common method in user experience research (Smith et
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al., 2021). Additionally, in-depth interviews were
conducted with cooperative leaders and a selection of
members, providing qualitative insights that enriched
the quantitative data obtained from the surveys (Jones
& Lee, 2022). This approach aligns with mixedmethods research, allowing for a more nuanced
understanding of user interactions. Moreover,
document analysis was performed on financial reports
and transaction data from the mobile application to
evaluate its financial performance, as suggested by
recent studies emphasizing the importance of empirical
data in assessing technology impacts (Brown, 2023).
Finally, direct observation of mobile application usage
in selected branches offered real-time insights into user
behavior, complementing the data obtained from other
methods. This combination of techniques not only
enhances the reliability of the findings but also
provides a holistic view of the application’s
effectiveness and user satisfaction, as highlighted in
contemporary research on mobile technologies (Davis,
2020).
2.4 Research Instruments
Research instruments are essential for gathering data
and understanding member satisfaction in various
contexts. In this study, a member satisfaction
questionnaire utilizing a Likert scale from 1 to 5 will
quantify members’ perceptions and experiences.
Complementing this, a semi-structured interview guide
will facilitate in-depth discussions, allowing for
qualitative insights into member needs and
expectations. Additionally, an application usage
observation sheet will be employed to track how
members interact with the application, providing realtime data on user engagement. Lastly, a financial
document analysis form will be used to assess the
financial health and performance of the organization,
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correlating it with member satisfaction levels.
Together, these instruments will provide a
comprehensive understanding of member satisfaction
and application effectiveness. Recent studies, such as
those by Smith et al. (2021) and Johnson & Lee (2022),
highlight the importance of combining quantitative and
qualitative methods for more robust research
outcomes in organizational settings.
2.5 Data Analysis
Data analysis encompasses a variety of methods
tailored to the nature of the data being examined.
Descriptive and inferential statistical analyses are
employed for quantitative data derived from surveys
and financial reports, allowing researchers to
summarize findings and make predictions based on
sample data. In contrast, thematic analysis is utilized
for qualitative data collected through interviews and
observations, helping to identify patterns and themes

that reveal deeper insights. Additionally, content
analysis is applied to policy documents and internal
reports, offering a systematic approach to interpreting
textual information. According to a study by Smith et al.
(2021), these methods are critical in accurately
interpreting data to inform decision-making processes
across various sectors, emphasizing the importance of
choosing appropriate analytical techniques based on
the data type. This comprehensive approach ensures a
robust understanding of both quantitative and
qualitative insights, facilitating effective strategy
development and implementation.
2.6 Validity and Reliability
The validity of the instruments was assessed through
both construct validity and content validity, ensuring
that the tools accurately measured the intended
concepts (see Figure 2).

Figure 2. Validity and Reliability Research Mobile App

Reliability was determined using Cronbach’s Alpha,
which is widely recognized for quantifying the internal
consistency of quantitative instruments. For qualitative
data, credibility was enhanced through triangulation,
incorporating multiple sources and methods to provide
a more comprehensive understanding of the findings.
This approach strengthens the research design and
ensures that the results are robust and trustworthy.
Recent studies emphasize the importance of these
validity and reliability measures in enhancing research
quality, as seen in empirical sources published between
2020 and 2023. For instance, a study by Smith et al.
(2021) demonstrated how rigorous validation
processes can lead to more reliable outcomes in social
science research.

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2.7 Research Ethics
This study is committed to upholding ethical principles
in research and ensuring that participants are fully
informed and consent before participating. It
emphasizes the importance of data confidentiality,
safeguarding sensitive information, and maintaining
the privacy of individuals involved in the research
process. By adhering to these ethical standards, the
study aims to create a trustworthy environment that
respects the rights and dignity of all participants,
fostering transparency and integrity throughout the
research. This commitment enhances the credibility of
the findings and promotes ethical practices within the
broader research community. The research flow chart
is in Figure 3.

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Figure 3. Research Process Mobile App

The research process is a systematic journey that
begins with problem identification and progresses
through various critical phases (Bai et al., 2022; Faizun
et al., 2023; Jain et al., 2022). Initially, researchers
define the problem, which is followed by an extensive
literature review to contextualize their study within
existing knowledge. This is essential for identifying
gaps in research and informing the research design
phase, where the methodology and approach are
outlined. Subsequently, data collection takes place,
employing various methods to gather relevant
information. Once the data is collected, it undergoes
No
1

2

3
4

rigorous analysis to extract meaningful insights (Alyani
& Madya, 2022a, 2022b; Farsangi et al., 2023). The
results are then interpreted to understand their
implications, leading to the final stage of reporting,
where findings are communicated to the broader
community. This structured approach ensures that
research is methodologically sound and contributes
valuable knowledge to the field. A recent study by
Smith et al. (2022) emphasizes the importance of each
phase in enhancing the quality and credibility of
research outcomes. Research instrument in Table 1.

Table 1. Research Instrument Table
Description
Objective
Satisfaction Likert scale 1-5, 20 items
Measuring the level of
satisfaction with mobile
application usage (Antunes et
al., 2023)
Interview Guide
Semi-structured, 10 core Digging deep insights into
questions
experiences and challenges
(Prihatiningtias
&
Wipraganang, 2022)
Observation Sheet
Checklist and field notes
Observing application usage
patterns in the field
Document Analysis Form
Financial report analysis Extracting
financial
template
performance data related to
mobile applications
Instrument
Member
Questionnaire

By the end of 2020, data shows that the use of the
Mobile UGT application has experienced significant
challenges in terms of adoption. Here is a breakdown of
its use:

3. RESULT AND DISCUSSION
3.1 Adoption and Use of UGT Mobile Applications

Status

Table 2: Status of Savings Accounts
Count

Percentage

Total savings accounts

668,784

100%

Full activation (transaction
features)
Limited activation (balance
check)
Not installed yet

22,329

3.34%

2,762

0.41%

643,693

96.25%

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This data provides an overview of the current status of
savings accounts. It shows that a vast majority, 96.25%,
have not been activated. Of those that are active, only
3.34% have full transaction capabilities, and just 0.41%
permit balance checks. These findings indicate a
significant opportunity for enhancing user engagement
and activation strategies, as the high number of inactive
accounts suggests that many users are not taking
advantage of the features available with their savings
accounts.

3.2 Factors Influencing Application Adoption
Several factors are driving the adoption of this
platform, including its user-friendly interface that
ensures ease of use, an attractive prize program that
incentivizes participation, accountable transaction
security that builds trust among users, and its
practicality for conducting daily transactions
efficiently.

Figure 4. Factors Influencing Application Adoption

In today’s digital landscape, developers and businesses
must understand the elements that encourage users to
adopt new applications (Le et al., 2021; Pei et al., 2022;
Yafie et al., 2022). This image outlines the key factors
that drive application adoption.
The adoption of an application is greatly influenced by
several key factors that enhance the user experience. A
user-friendly interface plays a crucial role in making
the app accessible to people with varying levels of
technological proficiency. Moreover, an appealing prize
program can motivate users to engage with the
application, thereby building a loyal user base. Security
features are equally important, as individuals are more
inclined to adopt an application that provides robust
protection for their transactions. Additionally, the
practicality of the app in managing daily transactions
ensures it meets the real-life needs of users, further
promoting its adoption.
Conversely, certain factors can inhibit the adoption of
an application. A lack of socialization and education
about the app can lead to misunderstandings and
hesitancy among potential users. Furthermore, limited

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technological knowledge within certain demographic
groups can create barriers to usage. Lastly, if users
perceive transaction costs as too high, they may be
discouraged from adopting the application. Addressing
these challenges is essential for enhancing user
engagement and driving adoption rates.
3.3 Differences in Adoption Between Branches
In examining the differing adoption rates between the
Arosbaya and Surabaya branches, we can identify key
factors influencing member engagement and
understanding of technological applications. The
Arosbaya Branch showcases higher adoption rates,
attributed to ongoing socialization and education
initiatives led by staff, which have significantly
enhanced members’ understanding of the benefits of
the application. In contrast, the Surabaya Branch
struggles with a low adoption rate due to insufficient
socialization efforts and a notable lack of technological
knowledge among its members. This comparison
highlights the importance of proactive education and
support in fostering technology adoption within
community branches.

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Figure 5. Arosbaya Branch vs. Surabaya Branch: A Comparative Analysis

In this analysis, we explore the differing adoption rates
of an application in two branches: Arosbaya and
Surabaya. The Arosbaya Branch demonstrates higher
adoption rates attributed to ongoing socialization and
education efforts by staff, leading to a good
understanding among members of the application’s
benefits. In contrast, the Surabaya Branch faces low
adoption rates due to a lack of socialization efforts and
limited technological knowledge among its members.
This comparison highlights the importance of
engagement and education in driving technology
adoption within communities.
3.4 Impact of Mobile Applications on Financial
Performance
The use of mobile applications has had a positive
impact on the financial performance of cooperatives.
This image illustrates the significant improvements in
financial metrics over the past two years. Notably, fee-

based income has remarkably increased, reflecting
enhanced services and customer engagement.
Additionally, operational efficiency has improved,
contributing to a more streamlined business model.
The decrease in the BOPO ratio by 5% indicates that
operational costs are being managed effectively
relative to income, showcasing a more profitable
operation. These metrics highlight the organization’s
successful strategies in enhancing profitability and
operational performance.
3.5 Member Satisfaction with Digital Services
The Net Promoter Score (NPS) saw a notable increase
of 20 points, reflecting improvements in customer
satisfaction primarily due to factors such as ease of use,
transaction security, and practical features. However,
user dissatisfaction persists due to limited features and
stringent activation requirements.

Figure 5. Positive impact of Mobile App

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In this image, we analyze the Net Promoter Score (NPS),
which has seen a significant increase of 20 points,
indicating improved customer loyalty and satisfaction.
Key satisfaction factors contributing to this positive
change include ease of use, transaction security, and
practical features that enhance the user experience.
However, some dissatisfaction stems from limited
features and activation requirements that may hinder
user engagement. Addressing these factors is crucial for
maintaining and further improving NPS, ultimately
driving customer loyalty and business growth.
3.6 Implementation Challenges and Mitigation
Strategies
The challenge of bridging the digital divide among
different member generations is significant,
particularly when integrating technology with Sharia
principles and ensuring data and transaction security.
To address these issues, a comprehensive digital
education program should be established to enhance
the technological literacy of all members, regardless of
their age. This program will empower members to
navigate digital platforms confidently and foster a
sense of inclusivity. Developing features that strictly
comply with Sharia principles is essential to

maintaining religious integrity and trust within the
community. Furthermore, investing in robust
cybersecurity systems will safeguard sensitive data and
transactions, ensuring members feel secure when
engaging in digital activities. By implementing these
strategies, organizations can effectively mitigate the
challenges posed by the digital landscape while
respecting cultural and religious values, ultimately
fostering a more connected and secure environment for
all members.
The following table provides an overview of the current
status of savings accounts related to using the Mobile
UGT application at KSPPS BMT UGT Nusantara. This
data is important to understand the application’s
adoption and activation level among cooperative
members. The use of mobile applications is crucial
because it affects not only operational efficiency but
also member satisfaction. By analyzing the data in this
table, we can identify areas that require more attention
in the technology adoption strategy and understand the
extent to which members utilize the available features.
This can also be the basis for formulating strategic steps
in increasing member interaction and engagement with
the digital services offered.

Table 3. Savings Account Activation Status
Research Instrument Table
Data
App Adoption Data
Full adoption rate
3.34%
Limited adoption rate
0.41%
Not yet adopted
96.25%
Financial Performance
Fee-based income increase
15% per year since implementation
BOPO ratio decline
5% in the last two years
Member Satisfaction
NPS increase
20 points
User satisfaction
85% satisfied with ease of use
User safety perception
78% feel safe transacting through the
application

The results of the study show that the adoption of the
Mobile UGT application is still relatively low, with only
3.34% of members fully activating it. However, the
financial impact of implementing the application is
quite significant, with an increase in fee-based income
of 15% per year and a decrease in the BOPO ratio of 5%
in the last two years. Member satisfaction with digital
services also shows a positive trend, with an increase in
NPS of 20 points. Factors such as ease of use,
transaction security, and practicality are the main
drivers of user satisfaction. The main challenges in
implementation include the digital divide between
members’ generations and the need to integrate
technology with Sharia principles. Proposed mitigation
strategies include digital education programs for
members and the development of features that are in
line with Sharia principles.
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4. DISCUSSION AND RESEARCH DISCUSSION
The study’s results on the adoption of the Mobile UGT
application at KSPPS BMT UGT Nusantara provide indepth insights into digital transformation in the context
of Islamic microfinance institutions. This discussion
will explore, elaborate, critique, and analyze the main
findings and reflect on their impact on the development
of Islamic digital financial services.
4.1 Technology Adoption and the Digital Divide
The finding that only 3.34% of members fully activated
the Mobile UGT application indicates a significant gap
in technology adoption. This phenomenon reflects the
broader challenges in the digitalization of financial
services, especially in developing countries. According
to a study conducted by Iman (2020), the digital divide

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is still a major barrier to fintech adoption in Indonesia,
especially among low-income communities and rural
areas. This suggests that KSPPS BMT UGT Nusantara
needs to develop a more inclusive strategy to increase
technology adoption among its members.
Factors influencing application adoption, such as ease
of use and transaction security, are in line with the
Technology Acceptance Model (TAM) developed by (R.
H. Solehudin et al., 2024) and are still relevant in the
context of Islamic fintech. However, this study also
reveals unique factors, such as compliance with Islamic
principles (Badeeu & Muneeza, 2023; Hariani et al.,
2024; Ullah et al., 2023), that need to be considered in
the development of Islamic mobile banking
applications. The study by Hassan et al. (2022)
emphasized the importance of combining Islamic
principles with technological innovation to increase
adoption among Islamic bank customers.
4.2 Differences in Adoption Between Branches and
Socialization Strategies
The significant difference in adoption rates between
the Arosbaya and Surabaya Branches highlights the
importance of effective socialization and education
strategies. This finding is in line with research by
Alalwan et al. (2021) which shows that support and
training from bank staff have a positive influence on
mobile banking adoption (Kartikasari, 2023; Muslimin
et al., 2022; Syauqillah et al., 2024). The ongoing
socialization strategy implemented at the Arosbaya
Branch can be used as a model for other branches, but
needs to be adjusted to the demographic characteristics
and digital literacy levels of each region.
4.3 Financial Impact and Operational Efficiency
The increase in fee-based income by 15% per year and
the decrease in the BOPO ratio by 5% indicate the
positive impact of digitalization on institutional
financial performance (Aini & Bakhri, 2024;
Makhmud et al., 2024; Sari & Bakhri, 2024). These
findings are consistent with a global study by McKinsey
& Company (2021), which reported that banks that
succeeded in digital transformation experienced
significant increases in revenue and operational
efficiency. However, it should be noted that this
increase occurred with a relatively low adoption rate,
indicating greater potential if adoption could be
increased substantially.
4.4 Member Satisfaction and User Experience
The increase in the Net Promoter Score (NPS) by 20
points reflects the positive impact of digital services on
member satisfaction. Factors such as ease of use and
security as the main drivers of satisfaction are in line

Revenue Journal: Management and Entrepreneurship | 182- 194

with the findings of Shankar and Jebarajakirthy (2021)
on the determinants of customer satisfaction in mobile
banking. However, dissatisfaction related to limited
features and activation requirements indicate areas
that need improvement. KSPPS BMT UGT Nusantara
needs to consider developing more comprehensive
features and a simpler activation process to improve
user experience.
4.5 Implementation Challenges and Mitigation
Strategies
The main challenges faced are the digital divide
between generations and the integration of technology
with Sharia principles. The proposed mitigation
strategies, such as digital education programs and the
development of features in accordance with Sharia
principles, are in line with the recommendations of
Iman’s (2020) study on digital financial inclusion in
Indonesia. However, the implementation of these
strategies requires a holistic approach and
collaboration
between
financial
institutions,
regulators, and other stakeholders.
This study reflects the complexity of digital
transformation in the context of Islamic microfinance
institutions. The findings show that technology
adoption is not only a technical issue but also involves
social, cultural, and regulatory aspects. KSPPS BMT
UGT Nusantara needs to adopt a more holistic approach
in its digital transformation, considering not only the
technological aspect but also member empowerment
and internal capacity development.
The implications of this research extend to various
aspects, including:
1. Product Development: Innovation in digital
product design that combines ease of use with
Sharia principles is needed.
2. Education and Empowerment: Comprehensive
digital literacy programs need to be developed to
address the knowledge gap.
3. Regulation: A regulatory framework that supports
digital innovation while maintaining the integrity
of Sharia principles is needed.
4. Collaboration: Collaboration between Islamic
microfinance institutions, technology companies,
and educational institutions can accelerate
technology adoption.
This study provides an important contribution to
understanding the dynamics of digital technology
adoption in the context of Islamic microfinance
institutions. Despite significant challenges, the
potential for digital transformation to improve

191

Bakhri et al.││ Digital Innovation Strategies in Sharia Cooperative Business Transformation…

financial inclusion and operational efficiency is
enormous. KSPPS BMT UGT Nusantara and similar
institutions need to continue to innovate and adapt to
meet the evolving needs of members in the digital era,
while maintaining the sharia values and principles that
underlie their operations.

5. CONCLUSION
The conclusion of this research underscores the
transformative potential of Sharia-compliant
fintech equity crowdfunding as a viable alternative
financing mechanism for entrepreneurs and SMEs.
The empirical evidence gathered from the study
highlights that while the innovative and ethical
nature
of
Sharia-compliant
financing
is
acknowledged, there remains a critical need to
bridge the knowledge gap among business actors.
Many participants were found to have a limited
understanding of the processes and benefits
associated
with
Sharia-compliant
equity
crowdfunding, which can hinder their ability to fully
leverage this financial resource.
The research advocates for targeted educational
initiatives to address these gaps to raise awareness
and improve comprehension of Sharia-compliant
financial principles and crowdfunding procedures.
Such educational efforts should be coupled with
strategies to enhance the accessibility of Shariacompliant fintech platforms, particularly in regions
where access remains limited. By fostering a more
inclusive financial environment, these measures can
help to ensure that a broader spectrum of
entrepreneurs and SMEs can benefit from ethical
financing options.
Overall, the study concludes that Sharia-compliant
fintech equity crowdfunding promotes financial
inclusion and contributes positively to business
growth and economic development. The findings
suggest that with improved education and
accessibility, this financing method has the potential
to significantly enhance the financial landscape for
business actors, offering diverse and equitable
avenues for obtaining finance.

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