The Influence of Financial Technology on the Advancement of Financial Inclusion in Micro, Small, and Medium Enterprises (MSMEs) in West Java

Ajeng Andriani Hapsari; Devy Mawarnie  Puspitasari

doi:10.62207/5v4t9q48

Authors

Ajeng Andriani Hapsari Universitas Pradita Author
Devy Mawarnie Puspitasari Universitas Mercubuana Author

DOI:

https://doi.org/10.62207/5v4t9q48

Abstract

The aim of composing this article is to investigate how a whole lot of impact on fintech (risk and investment management, market provisioning, and cashless society) has on financial inclusion (financial knowledge, financial behavior and financial attitudes) in MSMEs in West Java. The research completed is a kind of quantitative study. The population of this research is the MSME industry in West Java with a focus on the usage of archival statistics. This research uses descriptive evaluation and classical assumption exams. The results indicate that the financial technology variables (risk and investment and market provisioning) have no effect on economic inclusion (financial knowledge, financial behavior and financial attitudes) while the fintech variables (cashless society) have an impact on financial inclusion (financial knowledge, financial behavior and financial attitudes).

References

Allen, F., Carletti, E., & Marquez, R. (2011). Credit market competition and capital regulation. Review of Financial Studies, 24(4), 983-1018.

Allen, F., Demirgüç-Kunt, A., Klapper, L., & Peria, M. S. M. (2016). The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts. Journal of Financial Intermediation, 27, 1-30.

Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution of Fintech: A New Post-Crisis Paradigm? University of Hong Kong Faculty of Law Research Paper, (2015/034).

Bandung.

Bambang Purwoko, M. B. A., & Ec Hartati Kanti Astuti, M. M. (2017). 1. Pengaruh KEPUSAN DAN KEPERCAYAAN terhadap komitmen relasional dan loyalitas NASABAH BANK MANDIRI SURABAYA. Economics and Sustainable Development, 2(2), 1-1.

Beck, T., & Cull, R. (2014). SME finance in Africa. Journal of African Economies, 23(5), 583-613.

Beck, T., Chen, T., Lin, C., & Song, F. M. (2015). Financial innovation: The bright and the dark sides. Journal of Banking & Finance, 52, 56-70.

Bose, I. (2018). FinTech-led banking transformation: A regulatory perspective. Information Systems Frontiers, 20(2), 217-225.

Cooperatives, S. K., and SMEs. D. (2017). Policy Direction for Cooperatives and Micro, Small and Medium Enterprises. MSP Policy Direction for Cooperatives and Micro, Small and Medium Enterprises.

Demirgüç-Kunt, A., Klapper, L., Singer, D., & Van Oudheusden, P. (2015). The Global Findex Database 2014: Measuring Financial Inclusion around the World. World Bank Policy Research Working Paper, (7255).

Drasch, B. J., Schweizer, A., dan Urbach., N. (2018). Integrating the ‘Troublemakers’: A taxonomy for cooperation between banks and fintechs. Journal of Economics and Business, 04(100): 26-42. Fromhttps://ideas.repec.org/a/eee/jebusi/v100y2018icp26-42.html.

Financial Stability Board (FSB). 2017a. FinTech credit : Market structure, business model and financial stability Implications.

Gai, K., Qiu, M., & Sun, X. (2019). Fintech and SMEs Financing: Evidence from China. Finance Research Letters, 31, 116-120.

Gamal, A., & Bambang Purwoko, M. B. A. (2017). 3. PENGARUH MANAJERIAL DAN PENDANAAN TERHADAP PROFITABILITAS PADA PERUSAHAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2012-2015. Economics and Sustainable Development, 2(2), 25-25.

Hendrawan, A., Kuswantoro. F., and Sucahyawati, H. (2019). Dimensions of Creativity and Development of Micro, Small and Medium Enterprises (MSMEs).HUMMANCY Journal (Humanities, Management, Accountancy), 2(1): 25-36. From https://stikomyos.ac.id/journal/index.php/jurnalhummansi/article/view/ 194

Hidayatullah, A and Ainy. R.N. (2019). Increasing Financial Accountability of the Aisyiah Bantul MSME Group through bookkeeping and taxation training.Journal of National Seminar Results of Community Service. 681–686. Fromhttp://seminar.uad.ac.id/index.php/senimas/article/view/ 2307/626

Honohan, P., & King, M. (2009). Financial Development, Economic Growth and Poverty: A Review. Trinity Economic Papers Series, (0903).

Husein, U. (2013). Research Methods for Theses and Theses. Rajawali. Jakarta.

Isnawati, M. R. M. A. K. W. (2019). Ijab Qabul Business Unit Profit Sharing System.Journal Education Case Innovation Economy, 03(02): 25–30. Fromhttp://ejournal.umm.ac.id/index.php/skie/article/view/8760

Jaya, I. M. L. M. 2019. The Impact of Financial Inclusion on Public Financial Services Education through Financial Technology in Sleman Regency, Indonesia. Essence: Journal of Business and Management.9(2): 155 – 174. From https://doi.org/10.15408/ess.v9i2.13576

Katadata, A. (2016). MSMEs Mirage 97 % Employee Indonesia . https://databoks.katadata.co.id/datapublish/2016/11/23/umkmserap- 97-employeeIndonesia

Kumala, A. N and Susanti. (2017). The Influence of Financial Management Learning, Financial Literacy, AndRisk Tolerance Regarding the Investment Behavior of Students at the Faculty of Economics, Surabaya State University.Journal of Education Accountancy 7(2):197-203.From https://jurnalmahasiswa.unesa.ac.id/index.php/jpak/article/view/30047

Kunt, B.D then. Peria. M. (2004,2005,then 2006).Banking the Poor (2009c), Studies on access to financial services: Brazil (2004), India (2006c), Nepal (2007b), and Pakistan (2009b).

Latifa, T.G. (2015). The Influence of the Less Cash Lifestyle on the BCA Flazz Purchasing Decision Process in Bandung City in 2015.Thesis. Telkom University. Bandung.

Laucereno, S. F. (2018). Fintech Can Potentially Increase GDP by IDR 25 Trillion. detikFinance. From https://finance.detik.com/berita- Ekonomi-bisnis/d- 4186162/fintech-bisa-berpotensi-angkat-pdb-rp-25-triliun.

Li, Y., Spigt, R., & Swinkels, L. (2017). Fintech and Financial Inclusion: Evidence from China. SSRN Electronic Journal.

Manyika, J. (2015).The Internet of Things: Mapping The Value Beyond The Hype.

Mas, I., & Kumar, S. (2008). Banking on Mobiles: Why, How, for Whom? CGAP Focus Note, (48).

McKinsey Global Institute.

Muzdalifa, I., Rahma., I. A. and Novalia. B. G. (2018). The Role of Fintech in Increasing Financial Inclusion for MSMEs in Indonesia (Sharia Financial Approach).Masharif al-Syariah Journal: Journal of Economics and Banking Sharia, 3(1): 1-24. Fromhttp://103.114.35.30/index.php/Mas/article/download/1618/1306.

Nengsih, W. (2015). A comparative study on market basket analysis and apriori association technique. In 2015 3rd International Conference on Information and Communication Technology (ICoICT), 461-464.

OECD. (2012). PISA 2012 Results in Focus: What 15 year-Olds Know And What They Can Do With What They Know. Columbia University. New York.

Purwoko, B. (2015). Influence of service quality and customer satisfaction and loyalty trust foreign tourists visit the attractions in East Java Indonesia. European Journal of Business and Management. ISSN, 2222-1905.

Purwoko, B. (2021). Analysis Of The Effect Of Inflation On Exports Of Non-Oil And Gas Commodities Through The Port Of Tanjung Perak Surabaya. Eduvest-Journal of Universal Studies, 1(7), 577-584.

Putra, I. P. S., Ananingtiyas. H., Sari. D.R., Dewi. A. S., and Silvy. M. (2016). The influence of financial literacy level, experienced regret, and risk tolerance on choosing the type of investment.Journal of Business and Banking, 5(2): 271- 282. From https://journal.perbanas.ac.id/index.php/jbb/article/view/707.

Qiang, C. Z., Kuek, S. C., Dymond, A., & Esselaar, S. (2011). Mobile applications for agriculture and rural development. Information Technologies & International Development, 7(2), 18-32.

Rasyid, M. A.Z and Setyowati, R. I. (2017). Sharia Crowdfunding For

Saadiah, R. (2019). The Role of Financial Institutions in the Development of MSMEs in Cities Poor. Journal Creator, 2(1): 321–332From https://jurnalpangripta.malangkota.go.id/index.php/PANGRIPTA/article/v iew/49.

Saptia, Y. (2018). Financial Technology (FinTech) as an Alternative to Financial Services for MSMEs: Future Challenges. Jakarta. Indonesian Institute of Sciences

Sharia Banking Product Development from a Shariah Compliance Perspective.Diponegoro Law Journal6(4), 1–16. From https://ejournal3.undip.ac.id/index.php/dlr/article/view/19778.

Suasridewi, D. G., Prihartanti, W., Purwoko, B., & Rahmanto, A. (2023). Peran Efektivitas Penerimaan PAD Via Online Dalam Meningkatkan Pendapatan Asli Daerah Kota Surabaya. Madani: Jurnal Ilmiah Multidisiplin, 1(10).

Sugiyono. (2007).Quantitative Qualitative Research Methods and R&D. Alphabet.

World Bank. (2018). Global Financial Development Report 2017/2018: Bankers without Borders. Washington, DC: World Bank