DefinePK

Abstract

This study explores the effectiveness of revised zakat distribution through digital transformation in poverty alleviation efforts. Along with developing financial technology and digital inclusion, the traditional zakat distribution mechanism faces new challenges and opportunities in improving efficiency, transparency, and beneficiary outreach. Therefore, this research focuses on how digital transformation can optimize zakat distribution to improve mustahik welfare. Second, the factors that become obstacles and opportunities in implementing the digitalization of zakat distribution in various zakat management institutions are also studied. This research uses a qualitative approach with a case study method on several zakat institutions in Indonesia, and countries with developed digital zakat ecosystems. Data were collected through in-depth interviews, analysis of policy documents, and observation of the implementation of digital platforms in zakat distribution. In addition, this research also uses SWOT analysis to identify internal and external factors that affect the effectiveness of the digitalization of zakat distribution. The results show that the digitalization of zakat distribution contributes to improving the efficiency of fund allocation, accelerating the distribution process, and increasing transparency and accountability. However, challenges such as limited digital literacy of mustahik, resistance from traditional zakat managers, and data security issues need to be overcome. The study highlights the importance of integrating technology with traditional practices while addressing digital inequality to ensure the broader impact of zakat on poverty alleviation. Moreover, the research suggests that collaboration among various stakeholders, including the government, zakat institutions, and technology providers, is critical to the successful implementation of digital zakat systems.