THE DIGITAL TRANSFORMATION OF AKAD RAHN IN ISLAMIC BANKING: CHALLENGES RELATED TO SHARIA COMPLIANCE AND REGULATION, AND OPPORTUNITIES FOR SERVICE INNOVATION

Abstract

The development of the digital economy has brought significant changes to various sectors, including Islamic banking. One of the main products undergoing transformation is the rahn (Islamic pawn) contract, which is now shifting from a manual to a digital system. This study aims to analyze the challenges and opportunities for rahn digitalization in Islamic banking in the digital era. The method used is a qualitative approach with case studies, supported by literature analysis and research trend mapping using VOSviewer. The results show that rahn digitalization offers significant opportunities, including operational efficiency, expanded financial inclusion, contract transparency, and product innovation that can reach a wider community, including MSMEs and the millennial generation. The use of cutting-edge technologies such as blockchain, artificial intelligence (AI), and integration with Islamic fintech further strengthens the potential for digital rahn development. However, there are challenges that must be overcome, including low digital literacy, limited infrastructure, data security risks, and regulations that are not yet fully adaptive. In conclusion, the successful implementation of digital rahn requires synergy between sharia financial institutions, regulators, fintech and the community, while maintaining compliance with the principles of fiqh muamalah and maqasid sharia. Thus, digital rahn has the potential to become a financing instrument that is modern, inclusive, efficient, and remains in line with Islamic values.