Implementation and Challenges of Wadi'ah Contracts in Islamic Banking with a View to Future Prospects

Objective: Analyze the implementation, challenges, and prospects for the development of wadi'ah contracts in Islamic banking in Indonesia. Theoretical framework: The theoretical framework used involves the principles of wadi'ah contracts in muamalah fiqh and Islamic financial theory, including aspects of sharia compliance, risk management, and the dynamics of competition between Islamic and conventional banking. Literature review: A literature study discusses the concept of wadi'ah contracts in the Islamic financial literature, Islamic banking practices in Indonesia, as well as relevant operational and regulatory challenges, including the development of financial technology (fintech) and blockchain. Method: A descriptive-analytical qualitative method with data collection techniques through interviews, observations, and documentation studies. Results: The implementation of wadi'ah contracts is going well but faces challenges such as operational risks, sharia compliance, and product competition. Transparency and innovation, as well as the use of technologies such as blockchain and fintech, are needed to increase efficiency and customer trust. Implications: This research contributes to the development of policies and strategies for Islamic banking products, especially related to technology-based innovation and strengthening the competitiveness of wadi'ah products. Novelty: Highlighting the opportunities for the adoption of blockchain and fintech technology in strengthening the implementation of wadi'ah contracts, which have not been explored much in previous studies.