Financial technology could be an effective tool to achieve financial inclusion. However, it needed a certain level of readiness of society. In this paper, we investigated the determinants of readiness in the implementation of digital financial services which led to cashless society. We did a survey on 993 adults in a province in Indonesia using proportional sampling technique. Estimated using ordinary least square, our empirical results showed that readiness perception had high correlation with the quality of supporting infrastructure. By taking into account some demographic factors, we found that more educated and younger people had high spirit to adopt this system. Evidence showed that men were more enthusiastic in using such technological-based system. However, we did not find an evidence on the difference of readiness perception between those living in rural and those living urban areas. Abstrak Teknologi keuangan dapat menjadi suatu alat yang efektif untuk mencapai inklusi keuangan. Namun, itu memerlukan tingkat kesiapan masyarakat yang cukup. Dalam paper ini, kami meneliti determinan dari kesiapan implementasi layanan keuangan digital yang mendorong pada masyarakat non-tunai. Kami melakukan survei pada 993 orang dewasa in suatu provinsi di Indonesia dengan menggunakan metode pengambilan sampel proporsional. Diestimasi menggunakan ordinary least square, hasil empiris kami menunjukkan bahwa persepsi kesiapan berkorelasi tinggi dengan kualitas dari infrastruktur pendukung. Dengan memasukkan beberapa faktor demografi, kami menemukan bahwa orang yang lebih teredukasi dan lebih muda bersemangat untuk mengadopsi sistem ini. Sedikit bukti ditemukan bahwa laki-laki lebih antusias untuk menggunakan sistem berbasis teknologi tersebut. Namun demikian, kami tidak menemukan bukti mengenai perbedaaan persepsi kesiapan antara mereka yang tinggal di daerah pedesaan dan perkotaan.
This paper is part of research that aims to investigate whether Organisasi Pengelola Zakat (OPZ)
A substantial part of households and micro enterprises, particularly in developing countries including Indonesia, did not have access to formal financial institutions which then lead them to borrow money from illegal loan providers. Using an experimental study, we tested whether predatory loan, an illegal short-term loan with high interest rate, was preferable or not by comparing with pawnshop loan, bank loan and household's limited saving when households confront with financial distress. We divided the participants into three groups: lower low, low, and upper low income. We found that predatory loan was preferable especially for lower low and low income group. Result also confirmed that even if the predatory loan charge was increased, the lower low-and low-income groups still prefer to ease their financial distress through predatory loans. Moreover, the longer the duration of the predatory loan, the higher its probability to be chosen as a funding source in times of household financial distress. ABSTRAKSebagian kelompok rumah tangga dan usaha mikro khususnya di negara-negara berkembang termasuk Indonesia tidak memiliki akses ke lembaga-lembaga keuangan formal yang kemudian meminjam uang di pemberi pinjaman yang illegal. Dengan menggunakan metode eksperimen, kami menguji apakah pinjaman rentenir, suatu bentuk pinjaman jangka pendek yang illegal dengan tingkat bunga yang sangat tinggi, lebih dipilih atau tidak dibandingkan dengan pegadaian, pinjaman bank dan tabungan terbatas dari rumah tangga ketika suatu rumah tangga sedang menghadapi kesulitan keuangan. Kami membagi partisipan menjadi 3 grup yaitu pendapatan sangat rendah, rendah, di atas rendah. Kami menemukan bahwa pinjaman rentenir lebih dipilih khususnya oleh kelompok pendapatan sangat rendah dan rendah. Hasil penelitian ini juga mengkonfirmasi bahwa meskipun bunga pinjaman rentenir dinaikkan, kelompok pendapatan sangat rendah dan rendah masih memilih untuk mengatasi kesulitan keuangan dengan pinjaman rentenir. Lebih lanjut, semakin lama durasi dari pinjaman rentenir, semakin tinggi probabilitasnya untuk dipilih sebagai sumber pendanaan ketika ada kesulitan keuangan keluarga.
Digital-based financial innovation has grown rapidly in recent times along with internet and smartphone penetration. The emergence of fintech and the existence of digital-based innovations carried out by incumbents in the financial services sector, in this case banking, are expected to increase financial inclusion. Furthermore, financial inclusion will encourage the growth of the real sector through increasing new entrepreneurs and also increasing the scale of existing micro and small businesses so that it will ultimately drive economic output growth. However, to achieve this goal, joint efforts are needed to increase the digital financial literacy of the community, especially the younger generation so that digital financial presence can be used for productive activities. This article discusses community service programs within the framework of developing digital financial literacy to encourage the growth of new entrepreneurs and increase the scale of existing micro and small businesses, especially by utilizing technology..
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