FINANCIAL LITERACY CAPABILITIES IN INCREASING FINANCIAL INCLUSION THROUGH SHARIA FINTECH

Financial Literacy Capabilities In Increasing Financial Inclusion Through Sharia Fintech.

https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/832 

FINANCIAL LITERACY CAPABILITIES IN INCREASING FINANCIAL INCLUSION 

THROUGH SHARIA FINTECH

INTRODUCTION

Recent trends in the sector and financial services increasingly emphasize the importance of financial literacy because a lack of financial knowledge will lead to bad financial choices and decisions that can ultimately result in unwanted financial consequences and economic conditions. Financial literacy helps economic development in dealing with economic complexity and instability. Financial well-being and financial literacy are two important factors in determining an individual's quality of life.

Accumulative OJK consumer service statistics (data as of 1 January 2013 to 30 September 2021) show that the trend of OJK consumer services, including questions, information and complaints, tends to increase from 2013 to 2021. This is an interesting finding considering the literacy and inclusion index. Indonesian public finance increased from 2013, 2016 to 2019. Data on the level of literacy and public financial inclusion and public awareness regarding financial products and services.

METHOD

Financial literacy

OJK (2021) says that Financial literacy is knowledge, skills and beliefs that influence attitudes and behavior to improve the quality of decision-making and financial management in order to achieve prosperity. further Reserve Bank of India (2020) defines financial literacy as a combination of awareness, knowledge, skills, attitudes and behavior related to finance needed to make good financial decisions and ultimately achieve individual financial well-being.

Financial technology

According to Santi (2017) financial Technology, The National Digital Research Center (NDRC), in Dublin, Ireland, defines fintech as innovation in financial services or "innovation in fintech financial services which is an innovation in the financial sector that gets a touch of modern technology. Financial transactions through fintech include payments, investments, borrowing money, transfers, financial plans and comparisons of financial products. Meanwhile, according to Bank Indonesia circular letter No.18/22/DKSP concerning the Implementation of Digital Financial Services (2016) it explains that digital financial service activities are the use of mobile-based or web-based technology in payment and financial system service activities carried out in collaboration with third parties. in the context of financial inclusion.

Financial inclusion

According to Halim (2016) financial inclusion is defined as an effort to reduce all forms of price and non-price barriers to public access in utilizing financial services. Furthermore, the Global Financial Development Report (2014) financial inclusion is a situation where most individuals can use available financial services and minimize the existence of groups of individuals who do not understand the benefits of access to finance through access that is already available without high costs.

Conclusion

The results of this study conclude that the large ability of financial literacy in increasing the level of use of Islamic financial technology in increasing financial inclusion in Bank Aceh is very influential and significant, directly financial literacy is also able to increase financial inclusion, but the use of Islamic financial technology not all people can understand it In this study, financial technology is not able to increase financial inclusion, seen from the lack of public understanding accompanied by people's behavior that does not attach importance to digital technology, which can now easily help all household needs and needs. The implications of this research end in the study of changes in behavior patterns and attitudes of the community in determining financial goals. Currently, Bank Aceh's customers are more oriented to their daily basic needs and to sustain life. However, it is hoped that this understanding of financial literacy towards financial inclusion will add to an even more important understanding in setting financial goals such as saving, making investments, increasing loan ceilings, looking for work, preparing financial plans and developing independent businesses. The results of this study are also still limited in the provision of data, time and use of analytical tools. It is possible in the future to be able to use more valid data by using more accurate analytical tool models. However, it is hoped that this understanding of financial literacy towards financial inclusion will add to an even more important understanding in setting financial goals such as saving, making investments, increasing loan ceilings, looking for work, preparing financial plans and developing independent businesses. The results of this study are also still limited in the provision of data, time and use of analytical tools. It is possible in the future to be able to use more valid data by using more accurate analytical tool models. However, it is hoped that this understanding of financial literacy towards financial inclusion will add to an even more important understanding in setting financial goals such as saving, making investments, increasing loan ceilings, looking for work, preparing financial plans and developing independent businesses. The results of this study are also still limited in the provision of data, time and use of analytical tools. It is possible in the future to be able to use more valid data by using more accurate analytical tool models. The results of this study are also still limited in the provision of data, time and use of analytical tools. It is possible in the future to be able to use more valid data by using more accurate analytical tool models. The results of this study are also still limited in the provision of data, time and use of analytical tools. It is possible in the future to be able to use more valid data by using more accurate analytical tool models.

Acknowledge

In this research, it is necessary to express gratitude to the Bank of Aceh who is pleased and allowed me to conduct this research, gratitude to the Directorate General of Research, Technology and Higher Education in the Beginner Lecturer Research program, LPPM UNIKI and the publisher who wants to publish this article.

 

References

[1]. Alamsyah Halim, (2016). “Pentingnya Keuangan Inklusif dalam Meningkatkan Akses Masyarakat dan UMKM terhadap Fasilitas Jasa Keuangan Syariah”.

[2]. Ernama Santi, pengawasan otoritas jasa keuangan terhadap financial technology ( peraturan otoritas jasa keuangan nomor 77/pojk.01/2016, diponegoro law journal, Volume 6, Nomor 3, Tahun 2017.

[3]. Irma Muzdalifa, Inayah Aulia Rahma, Bella Gita Novalia. Peran Fintech Dalam Meningkatkan Keuangan Inklusif Pada Umkm Di Indonesia (Pendekatan Keuangan Syariah). Jurnal Masharif al- Syariah: Jurnal Ekonomi dan Perbankan Syariah Vol. 3, No. 1, 2018 ISSN: 2527 - 6344 (Print) ISSN: 2580 - 5800 (Online)

[4]. Global Financial Development Report 2014 : Financial Inclusion. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/16238 License: CC BY 3.0 IGO.