The Impact of Financial Literacy and Financial Technology on Financial Inclusion in Special Region of Yogyakarta, Indonesia

Abstract

Someone who has appropriate knowledge toward financial literacy (well literate) will be faster to learn about how financial institution works. Unfortunately, the level of financial literacy in Indonesia is only reached 29 percent. However, the goventment target on financial literacy itself is reached up to 75 percennt. Since the knowledge on how to manage the personal budget is quite important, people need to know to overcome the financial problem that could be occur in the future endeavors. This research aim to identificate the level of influence financial literacy toward financial inclusion in Special Region of Yogyakarta, Indonesia as part of the impact by financial technology usage. This study was used quantitative apprach using 133 respondents in Special Region of Yogyakarta. The data were obtained from spreading the questionnaire and interviews with respondents. Data analysis in this study used multiple linear regression using SPSS ver. 22. The result of this study shows that only financial technology which supported to influence financial Inclusion.

Industry 4.0 in Finance, Digital Financial Services and Digital Financial Inclusion in Developing Countries: Opportunities, Challenges, and Possible Policy Responses

“…Pal et al (2020b) andKusumawati et al (2022) outline the hindrances to DFI in developing countries. These include the lack of access to DFS (due to costs, the digital divide, and digital and financial exclusion), literacy challenges (digital literacy, financial literacy, and digital financial literacy, which exposes consumers to financial fraud and cybercrimes leading to mistrust toward DFSs reducing digital penetration and DFI) and the lack of digital infrastructure as well as risks.Pal et al (2020b) group the risks into privacy risks, security risks, and performance risks.…”