Financial Inclusion and Financial Self-Efficacy in Indonesia

DOI

10.2991/icoi-19.2019.95How to use a DOI?

Keywords

Financial Self-Efficacy, Financial Inclusion, SEM, Financial Behavior, Financial Exclusion

Abstract

Financial inclusion is a strategy used by the Indonesian government to reduce financial exclusion. A person's inability to access formal financial services is an obstacle to the realization of the financial inclusion. Financial inclusion can be realized if the community is able to understand formal financial services very well. This study wants to find out whether financial self-efficacy can stimulate individual financial behavior in terms of using formal financial products to realize financial inclusion. Hypothesis testing of this study will be carried out using structural equation modeling (SEM), and the object of research is the people who live in Bogor-West Java. This study finds that there is an influence of financial self-efficacy on financial inclusion. Formal financial service providers must pay attention to the quality of services provided to their customers. Apart from improving the quality of services directly, every formal financial service company must be able to develop products that are easier to reach and understand. The influence of financial self-efficacy on financial inclusion can provide an explanation that the independence of each individual from the side of income owned will have an impact on account ownership in banking. In addition, an increase in the ability of each individual in managing his personal finances must be done. This increase in capacity can be done with an understanding of good financial literacy.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Richy Wijaya
AU  - Hartini
AU  - Farah Margaretha Leon
PY  - 2019/10
DA  - 2019/10
TI  - Financial Inclusion and Financial Self-Efficacy in Indonesia
BT  - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019)
PB  - Atlantis Press
SP  - 543
EP  - 547
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoi-19.2019.95
DO  - 10.2991/icoi-19.2019.95
ID  - Wijaya2019/10
ER  -