In this arbitration text I will discuss "why Islamic banks are difficult to develop and grow" so Islamic banks are banks that carry out their business and operational activities based on Islamic or Islamic principles which are governed by the Indonesian Ulama Council (MUI). Just like conventional banks, Islamic banks in Indonesia are also overseen by the Financial Services Authority (OJK). The supervision system of the OJK is different from conventional bank supervision, its supervision will be adjusted to the performance and principles of sharia
Why do Islamic banks in Indonesia slow down? According to my argument, several things make Islamic banks slowdown. First, many Islamic banks have not been able to use m-banking in the era of advanced technology. This can all be done only through smartphones. who have made m-banking applications so that customers are more practical in conducting transactions while some Islamic banks do not yet have m banking or already have m-banking but the features are not as complete as conventional m-banking therefore many Muslims in Indonesia prefer conventional bank. .
Lack of financial assistance from the government for the development of Islamic banks. Many Islamic banks still need capital to develop features and performance in the work of the bank. The impact of Islamic banks can't open branch offices to expand the reach and enlarge the scope of marketing so that users or customers of Islamic banks can increase. And also the infrastructure of Islamic banks is still inadequate and also in terms of services are still far behind conventional banks, therefore customers still choose conventional banks than Islamic banks.
Next, in my opinion, Islamic banks are less interested because there are still many Muslims in Indonesia who do not know what are the advantages of using Islamic banks and what are the products of Islamic banks. Therefore, Islamic banks must hold an introduction to products and businesses so that people can find out and be interested in what are the advantages of using Islamic banks as we will avoid usury. This is the main function of sharia banks to avoid usury that is forbidden in Islamic teachings. And also the lack of awareness of Muslims, still use conventional products and banks because it is more profitable and features that are very complete but in conventional banking there is an element of usury that is forbidden by Islam.
The quality of human resources is still inadequate. So there is still a lack of people who help the development of Islamic banks and services that are still lacking. The lack of human resources in Islamic banking causes the quality of Islamic banks cannot develop due to lack of ideas and input. HR greatly influences the progress of Islamic banks if Islamic banks have highly competent, creative and high-performance human resources, Islamic banks will be able to advance in terms of services, technology, efficiency and development.
Indeed, currently Islamic banks in Indonesia are still far from expectations to develop more rapidly. Not one of the Islamic banks but the ignorance of the Islamic community in Indonesia who do not want to learn and use Islamic banks to avoid usury that is forbidden from the above factors Indonesia has been able to rank 9th out of 10 other Islamic countries, in terms of assets of the Islamic financial services industry. It states that not all people are ignorant of Islamic banks. They are still willing to save and use products from Islamic banks so that Islamic banks can progress and develop. Therefore we as Muslims let us use Islamic banks to avoid usury.
