This study analyzes the dynamic influence of digitalization and macroeconomic

variables on the financial performance of BMT UGT Nusantara during 2020

–

2025

using a Vector Error Correction Model framework. The results confirm a long

-

run

equilibrium relations

hip among digitalization, macroeconomic conditions, and BMT

financial performance. Digitalization emerges as the dominant driver, where digital

user adoption strongly drives intermediation efficiency while digital transaction

volume generates the most pers

istent contribution to asset growth. Macroeconomic

variables exert minimal direct causal influence, though inflation poses a more

persistent threat to intermediation efficiency than interest rate movements. A

fundamental asymmetry is identified in that bre

adth and depth of digitalization operate

through distinct institutional channels. BMT management is encouraged to develop

digitally accessible financing products to convert active transactors into productive

financing participants. For regulators, this stu

dy provides empirical justification for

policies facilitating digital transformation across Islamic microfinance cooperatives to

strengthen financial inclusion and institutional resilience.