ENHANCING DIGITAL FINANCIAL INCLUSION THROUGH DIGITAL LITERACY PROGRAM

• Main Author: Pramesti Anindito, Irischa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/76456
• Institution: Institut Teknologi Bandung

As a result of the Covid-19 pandemic and the completion of the Palapa Ring "sky highway," there has been a significant increase in internet penetration in Indonesia, which reached 78.19% of the total population by 2023. Furthermore, there has been a shift in behavior associated with the use of the Internet, including the way that individuals access financial services. Accessing financial services and products via the Internet is evidence that the development of information and communication technology has transformed the landscape of the financial industry, such that financial services can now be accessed in a more efficient, cost-effective way without having to visit a physical location. Nevertheless, despite the fact that increased access to technology is frequently associated with greater use of digital financial services, there is empirical evidence indicating barriers to sustainable digital financial inclusion, such as poor network connectivity and low levels of digital literacy. Although there has been a rise in the deployment of internet infrastructure and services in Indonesia in recent years, the digital divide remains a significant obstacle. This is particularly felt by rural and disadvantaged communities. This study aims to explain financial and digital behavior and determine whether the use of local community-based internet infrastructure in the form of a digital literacy program conducted by Common Room in Sukadana, North Lombok can mediate the role of financial literacy and inclusion of the participants' level of digital financial inclusion. Quantitative data were analyzed using descriptive statistics and multiple linear regression in this mixed-methods study. The objective of the qualitative analysis is to validate the quantitative findings. The findings of this study indicate that digital literacy can facilitate the shift from financial inclusion to digital financial inclusion. However, digital literacy has not been able to mediate the relationship between financial literacy and digital financial inclusion. As a result, a financial literacy education program needs to be developed in addition to the present digital literacy program.