Digital Finance For Improving Financial Inclusion Indonesians’ Banking

Abstract

A digital finance service breakthrough is essential to get better financialassistance to optimize financial inclusion, and the effectivenessrequires technological support in banking financial services. Thestudy investigates the effect of digital finance on financial inclusionin Indonesians’ banking industry. We develop the new measurement,namely average digital finance (ADF), and use loan transactionsto proxy financial inclusion. The samples are six banking during2013-2019, and we use panel data regression to test the hypothesisand do a robustness check. Our result confirms that ADF positivelyimpacts financial inclusion and finds evidence of bank size’s role indigital finance and financial inclusion. It implicates banks’ strategyfor optimizing financial inclusion based on its characteristics suchas age, profitability, and efficiency. It contributes to digital finance’sgovernment policy for using explored internet banking and mobilebanking stimulatingly.Widarwati, E., Solihin, A., & Nurmalasari, (2022). Digital Finance For Improving Financial Inclusion Indonesians’ Banking. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 17-30. https://doi.org/10.15408/sjie.v11i1.17884.