ABILITY OF FINANCIAL TECHNOLOGY IN MEDIATING FINANCIAL LITERACY TOWARDS FINANCIAL INCLUSION

Solihatun Nisak; Hwihanus Hwihanus

doi:10.31539/costing.v7i6.12804

Solihatun Nisak Universitas 17 Agustus 1945
Hwihanus Hwihanus Universitas 17 Agustus 1945, Surabaya

DOI: https://doi.org/10.31539/costing.v7i6.12804

Keywords: Financial Literacy, Financial Inclusion, Fintech, financial Awareness, Financial Experience, Financial Skills

Abstract

The purpose of this study is to determine the effect of financial literacy through 3 concepts, namely financial awareness, financial experience and financial skills on financial inclusion which has not been widely studied before. This study also aims to determine the ability of financial technology in mediating the effect of financial literacy on financial inclusion. This study is a quantitative study to test the hypothesis. The population selected in this study were household. The sample was selected using the random sampling method with the number of samples using the lemeshow method, samples in this test is 100 person. Data were analyzed using path analysis with the SmartPLS4 analysis tool. From the results of data testing, it was obtained that financial awareness, experience and financial technology had a significant effect on financial inclusion, while financial skills had no significant effect. Financial experience and financial skills had a significant effect on financial technology, while financial awareness did not have a significant effect on financial technology. Indirect testing showed that financial technology was able to mediate the effect of financial experience and financial skills on financial inclusion. However, financial technology was unable to mediate the effect of financial awareness on financial inclusion.

References

Al-Shami, S.A., Damayanti, R., Adil, H., & Farhi, F. (2024). Financial and digital financial literacy through social media use towards financial inclusion among batik small enterprises in Indonesia.Helion,10(15).
Bhegawati, DAS, & Novarini, NNA (2023). Accelerating financial inclusion for increasing economic growth, more inclusive, and equitable in the G20 presidency era. Journal of Accounting, Management, Business and Technology,3(1), 14-31.
Bongomin et al. (2016) Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy Vol. 26 No. 2
Dewi, VI, E. Febrian, N. Efendi, M. Anwar, and SR Nidar. 2020. Financial literacy and its variables: The evidence from Indonesia. Economics & Sociology 13 (3): 133– 154.
Elouaourti, Z., & Ezzahid, E. (2024). Factors of regional financial inclusion in Morocco. Regional Science Policy and Practice, 16(3).https://doi.org/10.1111/rsp3.12516
Frijns, B., A. Gilbert, and A. Tourani-Rad. 2014. Learning by doing: The role of finance experience in financial literacy. Journal of Public Policy 34(1): 123–154.
Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in online shopping: An integrated model.MIS quarterly, 51-90.
Geriadi, MAD, Sawitri, NPYR, Wijaya, BA, & Putri, IGAPT (2023). The Influence of Financial Literacy on Financial Inclusion Through Financial Technology.Journal of Management and Business Studies,10(2), 178-187.
Hijir, PS (2022). The influence of financial literacy on financial behavior with financial technology (fintech) as an intervening variable in SMEs in Jambi City.Journal of Applied Management and Finance,11(01), 147-156.
Hutabarat, F. 2018. The Influence of Financial Literacy and Financial Technology on Financial Inclusion Finance in Jabodetabek society. Bogor Agricultural Institute.
Holle, MH (2019). Financial inclusion; poverty alleviation solutions for competitiveness the nation's economy.Amal: Journal of Islamic Economics,1(02).
Kusuma, INP (2020). The Influence of Financial Literacy on Financial Inclusion through Financial Technology in MSMEs in Bandar Lampung.Journal of Business Management and Entrepreneurship,4(5), 247-252.'
Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy.Journal of Financial Services Marketing,29(1), 122-137.
Lusardi, A., and OS Mitchell. 2011. Financial literacy around the world: An overview. Journal of Pension Economics & Finance 10(4): 497–508.
Marini, M., Linawati, L., & Putra, RE (2020). The Role of Fintech in Financial Inclusion on South Tangerang UMKM. Sustainability: Journal of Management and Journal Accounting, 5(2), 91–95.https://doi.org/10.32493/sustainability.v5i2 .y2020.p91- 104
Mindra & Moya (2017) Financial self-efficacy: a determinant of financial inclusion.
Morgan, P. J., & Trinh, L. Q. (2019). Fintech and Financial Literacy in the Lao PDR. SSRN Electronic Journal, 933.
Mulasiwi, CM, & Julialevi, KO (2020). Optimization of Financial Technology (Fintech) Towards Increasing Financial Literacy and Inclusion of Middle Schools in Purwekerto. Performance: Journal of Personnel, Financial, Operations, Marketing and Information Systems, 27(1), 12–20.
Prameswari, S., Nugroho, M., & Pristiana, U. (2023). The Influence of Financial Literacy, Financial Awareness, Income Towards Financial Well-being with Financial Behavior and Financial Inclusion.IMWI Repository Horizon,6(1), 505- 516.
Priyadharshini, H. 2015. From financial literacy to financial well-being: A study of the levels of financial literacy of women teaching faculty in educational institutions in coimbatore region. Coimbatore: Bharathiar University
Pulungan, Delyana Rahmawani and Amelyana Ndruru. 2019. The Influence of Financial Literacy and Social Capital on Financial Inclusion of Students. SAMBIS. 2685-1474
Riyanto, S., & Hermawan, AA (2020). Quantitative Research Methods. Yogyakarta: Deepublish.
Safira, N., & Dewi, AS (2019). The Role of Social Capital as a Mediator of Financial Literacy And Financial Inclusion In Padang City.Management Partner Journal,3(1), 29-43.
Saputra, RS, & Dewi, AS (2017). The Role of Social Capital as a Mediator of Literacy Finance and Financial Inclusion Among Young People in Indonesia (Case Study on Beginner Stock Investor Community).Journal of Theory and Applied Management,10(3), 243.
Septiani, RN, & Wuryani, E. (2020). The Influence of Financial Literacy and Financial Inclusion On the Performance of MSMEs in Sidoarjo. 9(8), 3214–3236.
Syahrani, T., & Pradesa, E. (2023). The Role of Financial Literacy and Financial Inclusion in Increasing the Use of Financial Technology in MSMEs.Economy, Finance, Investment and Sharia (EQUITY),4(3), 1003-1010.
Sugiyono. (2020). Qualitative Quantitative Research Methods and R&D (Sutopo, Ed.; 2nd ed.). ALPHABET.
Okaro, C.S. (2016). Financial inclusion and Nigerian economy (1990-2015). Journal of Policy and Development Studies, 289(5400), 1-16
Wicaksono, E. Divarda, (2015). “The Influence of Financial Literacy on Payment Behavior Credit Cards for Employees in Surabaya”. FINESTA. Vol.03, No.01, pp:85-90. https:// publication.petra.ac.id/index.php/manajemen-keuangan/article/view/2971/0