EFFECT OF FINANCIAL TECHNOLOGY ON CASH HOLDING IN INDONESIA USING AUTOREGRESSIVE DISTRIBUTED LAG (ARDL)
The rapid proliferation of financial technology (Fintech) has revolutionized the landscape of financial services globally, presenting digital alternatives to conventional banking and payment methods. Indonesia has emerged as a noteworthy adopter of Fintech, driven by the widespread usage of smartpho...
Saved in:
| Main Author: | |
|---|---|
| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/76895 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The rapid proliferation of financial technology (Fintech) has revolutionized the landscape of financial services globally, presenting digital alternatives to conventional banking and payment methods. Indonesia has emerged as a noteworthy adopter of Fintech, driven by the widespread usage of smartphones and government initiatives aimed at fostering financial inclusion. Nonetheless, the empirical research concerning the association between Fintech adoption and cash holding behavior in Indonesia remains limited. This study endeavors to explore the influence of Fintech on individuals' cash holding patterns in the country, considering direct indicators such as debit cards, credit cards, electronic money, mobile banking, and internet banking. A time-series analysis covering the period from M5 2013 to M3 2023, based on secondary data from the Bank Indonesia Statistic Database, is employed to achieve this research objective. The analytical framework involves the utilization of the Autoregressive Distributed Lag (ARDL) bounds testing approach, which accounts for the concurrent and lagged effects of the explanatory variables. The empirical findings reveal a significant positive relationship between the usage of debit card, mobile banking, and internet banking in the short- term cash holding behavior. In contrast, credit card usage exhibits a negative and statistically significant association with long-term cash holding. These results contribute to a comprehensive understanding of how Fintech adoption shapes cash holding behavior in Indonesia and provide valuable insights into the country's transition toward a cashless society. |
|---|