The Challenges of FinTech Inclusion and Digitization of SMEs in Indonesia

2022 ◽  
pp. 118-134
Author(s):  
Syafrizal Helmi Situmorang
Keyword(s):  
Financial Literacy ◽  
Digital Literacy ◽  
Business Performance ◽  
Vital Role ◽  
Digital Economy ◽  
Financial Inclusion ◽  
Digital Ecosystem ◽  
Capital Financing ◽  
Financial Arrangements

The COVID-19 pandemic has changed people's digital behavior and caused giant leaps in various digital businesses. SMEs face various challenging factors in the transformation of their business into a digital ecosystem. Currently, Indonesia is the country with the fastest-growing digital economy and FinTech in ASEAN. Fintech plays a vital role in the digital economy, especially helping SMEs go digital and accelerate their business performance, such as venture capital financing, digital payment services, and financial arrangements. However, the role of fintech has not been maximized in increasing financial inclusion. There are still various obstacles and challenges such as technology adoption, financial literacy, digital literacy, financial inclusion, and fintech inclusion, and various program efforts from all stakeholders to bring SMEs into the digital ecosystem. Without cooperation, increasing financial literacy and financial inclusion and fintech inclusion will be challenging to achieve.

scholarly journals The effect of digital marketing, digital finance and digital payment on finance performance of Indonesian SMEs

2022 ◽  
Vol 6 (1) ◽  
pp. 37-44 ◽  
Author(s):  
Ibrahim Daud, Dewi Nurjannah ◽  
Achmad Mohyi ◽  
Titiek Ambarwati ◽  
Yoyok Cahyono ◽  
Andrean Eko Haryoko ◽  
...  
Keyword(s):  
Data Analysis ◽  
Financial Literacy ◽  
Digital Literacy ◽  
Structural Equation ◽  
Business Performance ◽  
Quantitative Methods ◽  
Digital Marketing ◽  
Equation Modeling ◽  
Snowball Sampling

The purpose of this study is to analyze the effect of digital finance, digital marketing and digital payment variables on finance performance. This study uses quantitative methods and data analysis techniques is performed based on Structural Equation Modeling using SmartPLS 3.0 software. The method of selecting the sample using the snowball sampling methods. Online questionnaires were sent to 190 SMEs respondents in the province of Banten Indonesia and evaluated the returned questionnaires. The results of data analysis show that the digital finance had a positive and significant effect on the finance performance, the digital payment had a positive and significant effect on the finance performance and the digital marketing had a positive and significant effect on the finance performance. The findings of this research can provide benefits for MSME actors in developing their business to improve business performance, by paying attention to aspects of MSME digitization and financial literacy of MSME entrepreneurs. Keep in mind, the important role of information technology in business activities requires entrepreneurs to improve their digital literacy.

scholarly journals INKLUSI KEUANGAN DAN LITERASI KEUANGAN TERHADAP KINERJA DAN KEBERLANGSUNGAN SEKTOR USAHA MIKRO KECIL MENENGAH

2021 ◽  
Vol 10 (1) ◽  
pp. 135-152
Author(s):  
Mei Ruli Ninin Hilmawati ◽  
Rohmawati Kusumaningtias
Keyword(s):  
Financial Literacy ◽  
Business Performance ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Least Square ◽  
Sustainable Business ◽  
Great Opportunity ◽  
Independent Variables ◽  
Dependent Variables ◽  
Least Square Approach

Abstrak: Inklusi Keuangan dan Literasi Keuangan terhadap Kinerja dan Keberlangsungan Sektor Usaha Mikro Kecil Menengah. Suatu kinerja unggul dan bisnis yang berkelanjutkan dapat terwujud apabila terdapat upaya-upaya strategis yang dilakukan. Jawa Timur merupakan salah satu provinsi dengan jumlah UMKM yang cukup banyak memiliki peluang yang besar untuk meningkatkan perekonomian Indonesia. Penelitian ini dilakukan untuk menganalisis pengaruh inklusi keuangan dan literasi keuangan terhadap kinerja dan keberlangsungan sektor UMKM yang terdapat di Kota Surabaya. Penelitian ini merupakan penelitian kuantitatif dengan inklusi keuangan (INKA) dan literasi keuangan (LIKA) sebagai variabel independen, serta kinerja usaha (KIUS) dan keberlangsungan usaha (KEUS) sebagai variabel dependen. Sampel pada penelitian ini berjumlah 113 UMKM yang kemudian dilakukan analisis dengan pendekatan Partial Least Square. Hasil penelitian menyimpulkan bahwa inklusi keuangan tidak berpengaruh terhadap kinerja dan keberlangsungan sektor UMKM. Sedangkan literasi keuangan memiliki pengaruh yang terhadap kinerja dan keberlangsungan sektor UMKM.Kata kunci: Inklusi Keuangan, Literasi Keuangan, Kinerja Bisnis, Keberlangsungan Bisnis, UMKMAbstract: Financial Inclusion and Financial Literacy on the Performance an Sustainability of the MSMEs. Excellent performance and sustainable business can be realized if there are strategic efforts. East Java, as one of the Province with a large number of MSMEs that have a great opportunity to improve the Indonesian economy. This study was conducted to analyze the effect of financial inclusion and financial literacy on the performance and sustainability of MSMEs in Surabaya. This research is a quantitative study with independent variables are financial inclusion (INKA) and financial literacy (LIKA), and the dependent variables are business performance (KIUS) and business continuity (KEUS). The sample in this study amounted to 113 MSMEs which were then analyzed using the Partial Least Square approach. this study concludes that financial inclusion has no effect on the performance and sustainability of MSMEs. while financial literacy has a influence on the performance and sustainability of MSMEs. Keywords: Financial Inclusion, Financial Literacy, Business Performance, Sustainability, MSMEs

scholarly journals Financial Technology (Fin-Tech): Revolutionizing the Indian Agrarian Sector

2020 ◽  
Vol 8 (12s3) ◽  
pp. 1-8
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Risk Sharing ◽  
Financial Inclusion ◽  
Indian Government ◽  
Agricultural Finance ◽  
Agricultural Growth ◽  
Two Factors ◽  
Financial Technology

Agriculture is the largest employer of India which constitutes 50% of its workforce and also a contributor to 17-18% in its GDP. Still, it is one of the most disorganized and disjointed sector.Somewhere this sector has not been given due attention and itcan be proven with the fact that the GDP contribution of this sector has fallen from 43% to 18% (1970- 2018).Though the Indian Government is digitally driving to provide financial inclusion to more than 145 million households that are not having access to banking services but still the farmers aremajorlyusing traditional credit for their basic and main two factors; Production & Consumption (Distribution). The financial segment has an important role to make agriculture aprime contributorto the economic growth of the country and also in reducing poverty. A fast-evolving technological landscape is bringing up new potential to focus&provide credit, risk-sharing, and to explore technology to enhance agricultural productivity. Our paper firstly examines agricultural finance in the Indian context and then discusses how financial technology (Fin-Tech) can drive new products in credit and risk markets in India. We evaluate the role of mobile banking, financial literacy, digital financial services, digital financial technology, and block-chain technology. The paper is concluded with a discussion of policy takeaways for Fin-Tech in agriculture to promote agricultural growth, enhance financial inclusion, and improve regional economic integration through agriculture.

Financial Literacy for Financial Inclusion Using Mobile Technology in India

2021 ◽  
pp. 637-650
Author(s):  
Smriti Ashish Pathak ◽  
Shreya Virani
Keyword(s):  
Mobile Technology ◽  
Financial Literacy ◽  
Digital Literacy ◽  
Financial Information ◽  
Financial Inclusion ◽  
Successful Implementation ◽  
Rural Poor ◽  
Rural People ◽  
Good Opportunity ◽  
Related Information

According to the RBI governor, technology-enabled financial information will spread financial literacy in an efficient and secure manner. India needs inclusive growth to pull millions out of poverty and mobile phone penetration can be a good opportunity. Consumers are exposed to a plethora of financial products but the knowledge is either not there or limited to make judicious choices. The successful implementation of financial literacy services would benefit rural people but it is a challenge to all stakeholders today. One-hundred twenty-five people all over India were selected for a survey and results point that rural poor accept mobile technology for banking related information but do not want to adopt the technology. There are various challenges for financial literacy in India discussed in the chapter. Also, opportunities are many for digital literacy and can be achieved if the challenges are overcome. All the stakeholders should put in concerted efforts at all levels to achieve financial inclusion through mobile technology disruption.

scholarly journals Peran Modal Sosial Sebagai Mediator Literasi Keuangan dan Inklusi Keuangan Pada Kaum Muda di Indonesia (Studi Kasus pada Komunitas Investor Saham Pemula)

2017 ◽  
Vol 10 (3) ◽  
pp. 243
Author(s):  
Rachmat Simbara Saputra ◽  
Andrieta Shintia Dewi
Keyword(s):  
Social Capital ◽  
Sample Size ◽  
Direct Effect ◽  
Financial Literacy ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Probability Sampling ◽  
Younger Generation ◽  
The Relationship

Currently the level of financial literacy and financial inclusion in Indonesian people, especially the younger generation, is still considered very low. Therefore, the role of social capital for improving financial literacy and financial inclusion in society need special attention. Social capital is expected to become a mediator for improving financial literacy and financial inclusion. This study aims to decide the role of social capital as a mediator of the relationship between financial literacy and financial inclusion. In addition, this study also examined the direct effect of financial literacy on financial inclusion. The population of this study were all members of the Investor Saham Pemula Community a number of 320 members. Making sample of this research using non-probability sampling technique with a sample size of 180 samples. This study adopts and uses Sobel and Kenny and Baron test to test the effect of mediation of social capital in the relationship between financial literacy and financial inclusion. The finding in this study is a proven social capital mediates the relationship between financial literacy and financial inclusion and there are no direct effect between financial literacy and financial inclusion. 

scholarly journals PENGARUH LITERASI KEUANGAN TERHADAP PERILAKU KEUANGAN MAHASISWA

2021 ◽  
pp. 127
Author(s):  
Wayan Tari Indra Putri ◽  
Kadek Nita Sumiari
Keyword(s):  
Regression Analysis ◽  
Financial Literacy ◽  
Financial Management ◽  
Linear Regression Analysis ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Test Results ◽  
Simple Linear Regression ◽  
Literacy Knowledge

Having knowledge of financial literacy is a must in order to have a prosperous life. Currently the OJK is working to improve financial inclusion and literacy, especially among students. This step is a form of effort to increase the role of students in the Indonesian economy. As the next generation, a student must have knowledge related to personal financial management. This knowledge will be very useful for students to manage their finances in the future. Four diploma students majoring in Accounting at the Bali State Polytechnic have obtained courses related to finance and investment so that they should have a good level of financial literacy knowledge. The purpose of this research is to examine the effect of financial literacy on student financial behavior. Respondents in this study amounted to 95 people. The data in this study were analyzed using simple linear regression analysis. The results of this study are that there is an influence between financial literacy variables on student financial behavior. The test results show that the better the knowledge or understanding of financial literacy possessed by students, the better the student's ability to implement good financial behavior.

scholarly journals Energy Strategy for Sustainable Development of Rural Areas Based on the Analysis of Sustainable Digital Economy

2021 ◽  
Vol 12 ◽  
Author(s):  
Zhuonan Wang ◽  
Yan Zhao
Keyword(s):  
Sustainable Development ◽  
Rural Areas ◽  
Sustainable Development Goals ◽  
Vital Role ◽  
Digital Economy ◽  
Energy Resources ◽  
It Professionals ◽  
The Sustainable Development ◽  
Development Goals

Technology has played a vital role in modifying the lifestyle of individuals and the emerging countries are progressing so fast as no one has ever thought before. With the progression of technology boosting, the pattern of energy resources consumption has also been the center of attention for researchers in this decade. China has been one of those countries that have adopted such energy strategies in its industrial regime. The economists and information technology (IT) working together have done wonders in digitalizing and sustaining the economies that will lead to sustainable development goals. This study has been an effort to understand the role of technology and the availability of affordable energy resources in obtaining a sustainable digital economy with the mediating role of sustainable development. The population of this study was IT professionals and economists. The survey data were collected from 285 respondents selected based on purposive sampling. The software adopted for data analysis was SmartPLS 3.3.3. This study showed that technology utilization had been an important predictor of sustainable development, contributing to a sustainable digital economy. Similarly, low operational cost also moderated the relationship of sustainable development and sustainable digital economy that has been the major focus of developing countries. Moreover, the strategy of cutting down the operation costs to bring it down to the level of affordability is a major challenge for the economies such as China that have been among the low production cost. Studies on the sustainable digital economy with respect to technological use are very limited. Hence, this study will find many advantages for economists and IT professionals in the future with respect to devising the strategies taking into account the sustainable development goals and the achievement of a sustainable digital economy.

PERAN MODAL SOSIAL SEBAGAI MEDIATOR LITERASI KEUANGAN DAN INKLUSI KEUANGAN PADA USIA PRODUKTIF DI KABUPATEN GUNUNGKIDUL

2020 ◽  
Vol 15 (1) ◽  
pp. 27
Author(s):  
Elizabeth Fiesta Clara SB ◽  
Astrie Krisnawati
Keyword(s):  
Social Capital ◽  
Financial Literacy ◽  
Poverty Alleviation ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
The Other ◽  
Probability Sampling ◽  
The Relationship ◽  
Determinant Factor

ABSTRACT Financial inclusion is proven to decrease poverty and social gap if it is done maximally. Gunungkidul regency as one of all regency with the poorest population in Daerah Istimewa Yogyakarta. The determinant factor in successful financial inclusion is financial literacy toward the population themselves. Furthermore, the other factor to accelerate poverty alleviation is the role of the productive population.This research aims to discover the role of social capital as the financial literacy and financial inclusion mediator of Gunungkidul’s Regency productive population. With social capital is expected to be a mediator in improving literacy and inclusion finance.The population in this research is 729.364 productive ages of Gunungkidul’s Regency population and the sample was taken by non-probability sampling technique which produced 424 samples. This study adopted Sobel test also Kenny and Baron method to examine the effect of mediaton of social capital in the relationship between financial literasion and financial inclusion. The result of this study found that social capital proved to partially mediate the association beteen financial literacy and financial inclusion of productivity age in Gunungkidul Regency. Keywords: Poverty, Financial Literacy, Financial Inclusion, Social Capital, Partially Mediation, Gunungkidul Regency. ABSTRAK Gunungkidul termasuk Kabupaten dengan jumlah warga miskin Yogyakarta. Inklusi keuangan dipercaya dapat menurukan kemiskinan apabila dilakukan secara maksmial serta dapat mengurangi kesenjangan sosial. Salah satu faktor penentu keberhasilan inklusi keuangan adalah adanya literasi keuangan pada masyarakat itu sendiri, faktor lain yang dapat mempercepat pengentasan kemiskinan adalah peran masyarakat produktif. Penelitian ini bertujuan untuk mengetahui peran modal sosial sebagai mediator literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul yang diharapkan dapat meningkatkan literasi keuangan dan inklusi keuangan itu sendiri. Populasi penelitian ini adalah masyarakat Kabupaten Gunungkidul berusia produktif sebesar 729.364 jiwa. Pengambilan sampel dengan teknik non-probability sampling menghasilkan sampel sejumlah 424 jiwa. Penelitian mengadopsi dan menggunakan tes Sobel serta metode Baron dan Kenny dalam pengujian pengaruh mediasi modal sosial pada hubungan literasi keuangan dan inklusi keuangan. Hasil penelitian menemukan bahwa modal sosial terbukti secara parsial memediasi hubungan antara literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul. Kata kunci: Usia Produktif, Literasi Keuangan, Inklusi Keuangan, Modal Sosial, Kabupaten Gunungkidul.

scholarly journals Desa Digital dan Tingkat Literasi Keuangan Aparatur Desa: Studi Kasus Kabupaten Aceh Tamiang

2021 ◽  
Vol 21 (2) ◽  
pp. 220-234
Author(s):  
Fitriansyah Fitriansyah ◽  
Chaikal Nuryakin
Keyword(s):  
Local Government ◽  
Financial Literacy ◽  
Digital Literacy ◽  
Financial Inclusion ◽  
Social Benefits ◽  
Level Of Education ◽  
The Poor ◽  
Digital Services ◽  
The Government ◽  
The Village

Since 2014, to reach the poor for increasing financial inclusion, the government of Indonesia has been digitizing social benefits. Recently, local government has also been pushed to build a “Digital Village.” We argue that for such a program to succeed, a good level of financial and digital literacy of the village officials is necessary. We surveyed the village officials in 60 out of 215 Aceh Tamiang to examine their financial, digital, and DFS literacy. We find that the literacy of the village officials, on average, is low. The factors contributing to low financial literacy are age, level of education, and accessibility to financial and digital services. --------------------------------- Sejak tahun 2014, Pemerintah mendorong inklusi keuangan bagi masyarakat berpendapatan rendah melalui digitalisasi bantuan sosial. Perkembangan terbaru, pemerintah daerah juga didorong untuk membangun “Desa Digital”. Keberhasilan program ini menurut penulis, membutuhkan literasi keuangan dan literasi digital aparatur desa. Studi ini melakukan survei mengenai literasi keuangan, digital, dan keuangan digital dari aparatur desa di 60 desa dari 213 desa di Kabupaten Aceh Tamiang. Hasil penelitian menunjukkan bahwa secara rata-rata tingkat literasi masih rendah, bahkan cenderung kurang. Penelitian ini menemukan bahwa faktor usia, tingkat pendidikan, dan akses terhadap keuangan digital memengaruhi tingkat literasi keuangan aparatur desa.

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