Intention to Use Digital Finance MSMEs: The Impact of Financial Literacy and Financial Inclusion
Abstract
The purpose of this study is determine financial literacy affects intention to use digital finance and financial inclusion affects intention to use digital finance. Collecting data using questionnaires and PLS analysis method. The results show the intention to use digital finance is influenced by financial literacy with medium significance and financial inclusion with a very strong significance. This finding contributes for fintech knowledge, because the intention to use digital finance’s research is rare expecially for MSME actors, so this results provide suggestions for disseminating financial knowledge and services that have impact on usage intentions to end up with better market and MSME development. This research focuses on the intention to use digital finance for MSMEs, which is important because it requires adjustment to the times that lead to digitalization. The city of Bandung as a city with a fairly large number of MSMEs has attracted the attention of researchers
Keywords: financial inclusion, financial literacy, intention to use digital finance
Downloads
Download data is not yet available.
References
Abdillah, W., & Hartono, J. (2015). Partial Least Square (PLS) Alternatif Structural Equation Modeling (SEM) dalam Penelitian Bisnis. Yogyakarta: CV. ANDI OFFSET.
Abduh, T. (2017). Strategi Internasionalisasi UMKM. Makasar: CV. Sah Media.
Agarwal, T. (2016). An Analysis of the Twin Pillars of the Banking in India: Financial Literacy and Financial Inclusion. Gavesana Journal of Management, 8(1&2). Retrieved from https://search.proquest.com/openview/4ecd051122f97a63c203ae566bb2c26d/1?pq-origsite=gscholar&cbl=2044546
Alwi, S., Salleh, M. N. M., Alpandi, R. M., Ya’acob, F. F., & Abdullah, S. M. M. (2021). Fintech As Financial Inclusion: Factors Affecting Behavioral Intention To Accept Mobile E-Wallet During Covid-19 Outbreak. Turkish Journal of Computer and Mathematics Education, 12(7), 2130–2141.
Arun, T., & Kamath, R. (2015). Financial inclusion: Policies and practices. IIMB Management Review, 27(4), 267–287. https://doi.org/10.1016/j.iimb.2015.09.004
Azam, M. S. (2015). Diffusion of ICT and SME Performance. https://doi.org/10.1108/S1069-096420150000023005
Badan Pusat Statistik. (2019). Statistik Telekomunikasi Indonesia. Retrieved from https://www.bps.go.id/publication/2020/12/02/be999725b7aeee62d84c6660/statistik-telekomunikasi-indonesia-2019.html
Bagozzi, R. P., & Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science, 16(1), 74–94.
Bayrakdaroğlu, F., & Bayrakdaroğlu, A. (2017). A Comparative Analysis Regarding The Effects of Financial Literacy and Digital Literacy on Internet Entrepreneurship Intention. Journal of Entrepreneurship and Development, 12(2), 27–38.
Bongomin, G. O. C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2017). Financial literacy in emerging economies. Managerial Finance, 43(12), 1310–1331. https://doi.org/10.1108/MF-04-2017-0117
Bongomin, G. O. C., Ntayi, J. M., Munene, J. C., & Nkote Nabeta, I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072
Braunstein, S., & Welch, C. (2002). Financial literacy: An overview of practice, research, and policy. Fed. Res. Bull, 88, 445.
C.O, I. E., C, E. G., C, O. M., C.O, O. O., & P, O. I. (2020). Digital Finance and Financial Inclusion in Nigeria: Lessons From Other Climes. Nigerian Journal of Banking and Finance, 12(1), 97–105.
Chiwaula, L., Matita, M., Kamwanja, T., Cassim, L., & Agurto, M. (2020). Combining Financial-Literacy Training and Text-Message Reminders to Influence Mobile-Money Use and Financial Behavior among Members of Village Savings and Loan Associations: Experimental Evidence from Malawi.
Damayanti, S. M., Murtaqi, I., & Pradana, H. A. (2018). The Importance of Financial Literacy in a Global Economic Era. The Business and Management Review, 9, 435–441. Retrieved from https://cberuk.com/cdn/conference_proceedings/2019-07-14-11-03-17-AM.pdf
Deka, P. P. (2015). Financial literacy and financial inclusion for women empowerment: A study. International Journal of Applied Research, 1(9), 145–148. Retrieved from http://www.allresearchjournal.com/archives/2015/vol1issue9/PartC/1-9-19.pdf
Donner, J. (2008). Research Approaches to Mobile Use in the Developing World: A Review of the Literature. The Information Society, 24(3), 140–159. https://doi.org/10.1080/01972240802019970
Gerrard, P., Barton Cunningham, J., & Devlin, J. F. (2006). Why consumers are not using internet banking: a qualitative study. Journal of Services Marketing, 20(3), 160–168. https://doi.org/10.1108/08876040610665616
Go, F. M., & Govers, R. (2011). International Place Branding Yearbook 2011 (Managing Reputational Risk). New York: Palgrave Macmillan.
Gunardi, A., Ridwan, M., & Sudarjah, G. M. (2017). The Use of Financial Literacy for Growing Personal Finance. Jurnal Keuangan Dan Perbankan, 21(3), 446–458.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Herdinata, C. (2020). The Effect of Regulation, Collaboration, and Financial Literacy on Financial Technology Adoption. Expert Journal of Business and Management, 8(2), 131–138.
Hermawan, A., Gunardi, A., & Agustine, W. M. I. (2018). Understanding the Determinants of Financial Literacy: A quantitative Study on Students. Advances in Economics, Business and Management Research, 65.
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Jawlik, A. A. (2016). Statistics from A to Z Confusing Concepts ClarifieJawlik, A. A. (2016). Statistics from A to Z Confusing Concepts Clarified. Canada: John Wiley & Sons Inc.d. Canada: John Wiley & Sons Inc.
Kartawinata, B. R., & Mubaraq, M. I. (2018). Pengaruh Kompetensi Keuangan Terhadap Literasi Keuangan Bagi Wanita di Makassar. Oikos: Jurnal Kajian Pendidikan Ekonomi Dan Ilmu Ekonomi, 2, 87–100.
Leng, S. Y., Talib, A., & Gunardi, A. (2018). Financial Technologies: A Note on Mobile Payment. Jurnal Keuangan Dan Perbankan, 22(1), 51–62.
Leyshon, A., Thrift, N., & Pratt, J. (1998). Reading Financial Services: Texts, Consumers, and Financial Literacy. Environment and Planning D: Society and Space, 16(1), 29–55. https://doi.org/10.1068/d160029
Lumenta, U. Z., & Worang, F. G. (2019). The Influence of Financial Inclusion on The Performance of Micro Small and Medium Enterprises in North Sulawesi. Jurnal EMBA, 7, 2910–2918. Retrieved from https://ejournal.unsrat.ac.id/index.php/emba/article/view/24034/23721
Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5–44.
Melubo, K. D., & Musau, S. (2020). Digital Banking and Financial Inclusion of Women Enterprises in Narok County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 2(1), 28–41.
Myeni, S., Makate, M., & Mahonye, N. (2020). Does mobile money promote financial inclusion in Eswatini? International Journal of Social Economics, 47(6), 693–709. https://doi.org/10.1108/IJSE-05-2019-0310
Nkundabanyanga, S. K., Kasozi, D., Nalukenge, I., & Tauringana, V. (2014). Lending terms, financial literacy and formal credit accessibility. International Journal of Social Economics, 41(5), 342–361. https://doi.org/10.1108/IJSE-03-2013-0075
Nugroho, A. P., & Apriliana, R. M. (2021). Islamic Financial Literacy and Intention to Use Gopay in Yogyakarta: Extended Theory of Acceptance Models. International Conference on Islamic Studies and Social Sciences (ICONISSS) 2021. Yogyakarta.
Otoritas Jasa Keuangan. (2016). POJK regulation Number 76/POJK.07/2016.
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
Qian, W. X. (2019). Determinants and Consequences of the Use of Digital Finance Platform for Personal Financial Management in Rural China (Curtin University). Retrieved from https://espace.curtin.edu.au/handle/20.500.11937/76185
Salkind, N. J. (Ed.). (2007). Encyclopedia of Measurement and Statistics. California: Sage Publications, Inc.
Senyo, P., & Osabutey, E. L. C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98, 102155. https://doi.org/10.1016/j.technovation.2020.102155
Senyo, P., Osabutey, E. L. C., & Seny Kan, K. A. (2020). Pathways to improving financial inclusion through mobile money: a fuzzy set qualitative comparative analysis. Information Technology & People, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ITP-06-2020-0418
Shen, Y., Hu, W., & Hueng, C. J. (2018). The Effects of Financial Literacy, Digital Financial Product Usage and Internet Usage on Financial Inclusion in China. MATEC Web of Conferences, 228, 05012. https://doi.org/10.1051/matecconf/201822805012
Siddik, M. N. A., Sun, G., Yanjuan, C., & Kabiraj, S. (2014). Financial Inclusion through Mobile Banking: A Case of Bangladesh. Journal of Applied Finance & Banking, 4(6), 109–136.
Sina, P. G. (2017). Financial Contemplation Part 1. Bogor: Guepedia.
Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in FinTech innovation in Germany. Information & Computer Security, 26(1), 109–128. https://doi.org/10.1108/ICS-06-2017-0039
Yanti, W. I. P. (2019). Pengaruh Inklusi Keuangan dan Literasi Keuangan Terhadap Kinerja UMKM di Kecamatan Moyo Utara. Jurnal Manajemen Dan Bisnis, 2. Retrieved from http://jurnal.uts.ac.id/index.php/jmb/article/view/305
Zhou, T., Lu, Y., & Wang, B. (2010). Integrating TTF and UTAUT to explain mobile banking user adoption. Computers in Human Behavior, 26(4), 760–767. https://doi.org/10.1016/j.chb.2010.01.013
Abduh, T. (2017). Strategi Internasionalisasi UMKM. Makasar: CV. Sah Media.
Agarwal, T. (2016). An Analysis of the Twin Pillars of the Banking in India: Financial Literacy and Financial Inclusion. Gavesana Journal of Management, 8(1&2). Retrieved from https://search.proquest.com/openview/4ecd051122f97a63c203ae566bb2c26d/1?pq-origsite=gscholar&cbl=2044546
Alwi, S., Salleh, M. N. M., Alpandi, R. M., Ya’acob, F. F., & Abdullah, S. M. M. (2021). Fintech As Financial Inclusion: Factors Affecting Behavioral Intention To Accept Mobile E-Wallet During Covid-19 Outbreak. Turkish Journal of Computer and Mathematics Education, 12(7), 2130–2141.
Arun, T., & Kamath, R. (2015). Financial inclusion: Policies and practices. IIMB Management Review, 27(4), 267–287. https://doi.org/10.1016/j.iimb.2015.09.004
Azam, M. S. (2015). Diffusion of ICT and SME Performance. https://doi.org/10.1108/S1069-096420150000023005
Badan Pusat Statistik. (2019). Statistik Telekomunikasi Indonesia. Retrieved from https://www.bps.go.id/publication/2020/12/02/be999725b7aeee62d84c6660/statistik-telekomunikasi-indonesia-2019.html
Bagozzi, R. P., & Yi, Y. (1988). On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science, 16(1), 74–94.
Bayrakdaroğlu, F., & Bayrakdaroğlu, A. (2017). A Comparative Analysis Regarding The Effects of Financial Literacy and Digital Literacy on Internet Entrepreneurship Intention. Journal of Entrepreneurship and Development, 12(2), 27–38.
Bongomin, G. O. C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2017). Financial literacy in emerging economies. Managerial Finance, 43(12), 1310–1331. https://doi.org/10.1108/MF-04-2017-0117
Bongomin, G. O. C., Ntayi, J. M., Munene, J. C., & Nkote Nabeta, I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072
Braunstein, S., & Welch, C. (2002). Financial literacy: An overview of practice, research, and policy. Fed. Res. Bull, 88, 445.
C.O, I. E., C, E. G., C, O. M., C.O, O. O., & P, O. I. (2020). Digital Finance and Financial Inclusion in Nigeria: Lessons From Other Climes. Nigerian Journal of Banking and Finance, 12(1), 97–105.
Chiwaula, L., Matita, M., Kamwanja, T., Cassim, L., & Agurto, M. (2020). Combining Financial-Literacy Training and Text-Message Reminders to Influence Mobile-Money Use and Financial Behavior among Members of Village Savings and Loan Associations: Experimental Evidence from Malawi.
Damayanti, S. M., Murtaqi, I., & Pradana, H. A. (2018). The Importance of Financial Literacy in a Global Economic Era. The Business and Management Review, 9, 435–441. Retrieved from https://cberuk.com/cdn/conference_proceedings/2019-07-14-11-03-17-AM.pdf
Deka, P. P. (2015). Financial literacy and financial inclusion for women empowerment: A study. International Journal of Applied Research, 1(9), 145–148. Retrieved from http://www.allresearchjournal.com/archives/2015/vol1issue9/PartC/1-9-19.pdf
Donner, J. (2008). Research Approaches to Mobile Use in the Developing World: A Review of the Literature. The Information Society, 24(3), 140–159. https://doi.org/10.1080/01972240802019970
Gerrard, P., Barton Cunningham, J., & Devlin, J. F. (2006). Why consumers are not using internet banking: a qualitative study. Journal of Services Marketing, 20(3), 160–168. https://doi.org/10.1108/08876040610665616
Go, F. M., & Govers, R. (2011). International Place Branding Yearbook 2011 (Managing Reputational Risk). New York: Palgrave Macmillan.
Gunardi, A., Ridwan, M., & Sudarjah, G. M. (2017). The Use of Financial Literacy for Growing Personal Finance. Jurnal Keuangan Dan Perbankan, 21(3), 446–458.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Herdinata, C. (2020). The Effect of Regulation, Collaboration, and Financial Literacy on Financial Technology Adoption. Expert Journal of Business and Management, 8(2), 131–138.
Hermawan, A., Gunardi, A., & Agustine, W. M. I. (2018). Understanding the Determinants of Financial Literacy: A quantitative Study on Students. Advances in Economics, Business and Management Research, 65.
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Jawlik, A. A. (2016). Statistics from A to Z Confusing Concepts ClarifieJawlik, A. A. (2016). Statistics from A to Z Confusing Concepts Clarified. Canada: John Wiley & Sons Inc.d. Canada: John Wiley & Sons Inc.
Kartawinata, B. R., & Mubaraq, M. I. (2018). Pengaruh Kompetensi Keuangan Terhadap Literasi Keuangan Bagi Wanita di Makassar. Oikos: Jurnal Kajian Pendidikan Ekonomi Dan Ilmu Ekonomi, 2, 87–100.
Leng, S. Y., Talib, A., & Gunardi, A. (2018). Financial Technologies: A Note on Mobile Payment. Jurnal Keuangan Dan Perbankan, 22(1), 51–62.
Leyshon, A., Thrift, N., & Pratt, J. (1998). Reading Financial Services: Texts, Consumers, and Financial Literacy. Environment and Planning D: Society and Space, 16(1), 29–55. https://doi.org/10.1068/d160029
Lumenta, U. Z., & Worang, F. G. (2019). The Influence of Financial Inclusion on The Performance of Micro Small and Medium Enterprises in North Sulawesi. Jurnal EMBA, 7, 2910–2918. Retrieved from https://ejournal.unsrat.ac.id/index.php/emba/article/view/24034/23721
Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5–44.
Melubo, K. D., & Musau, S. (2020). Digital Banking and Financial Inclusion of Women Enterprises in Narok County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 2(1), 28–41.
Myeni, S., Makate, M., & Mahonye, N. (2020). Does mobile money promote financial inclusion in Eswatini? International Journal of Social Economics, 47(6), 693–709. https://doi.org/10.1108/IJSE-05-2019-0310
Nkundabanyanga, S. K., Kasozi, D., Nalukenge, I., & Tauringana, V. (2014). Lending terms, financial literacy and formal credit accessibility. International Journal of Social Economics, 41(5), 342–361. https://doi.org/10.1108/IJSE-03-2013-0075
Nugroho, A. P., & Apriliana, R. M. (2021). Islamic Financial Literacy and Intention to Use Gopay in Yogyakarta: Extended Theory of Acceptance Models. International Conference on Islamic Studies and Social Sciences (ICONISSS) 2021. Yogyakarta.
Otoritas Jasa Keuangan. (2016). POJK regulation Number 76/POJK.07/2016.
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
Qian, W. X. (2019). Determinants and Consequences of the Use of Digital Finance Platform for Personal Financial Management in Rural China (Curtin University). Retrieved from https://espace.curtin.edu.au/handle/20.500.11937/76185
Salkind, N. J. (Ed.). (2007). Encyclopedia of Measurement and Statistics. California: Sage Publications, Inc.
Senyo, P., & Osabutey, E. L. C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98, 102155. https://doi.org/10.1016/j.technovation.2020.102155
Senyo, P., Osabutey, E. L. C., & Seny Kan, K. A. (2020). Pathways to improving financial inclusion through mobile money: a fuzzy set qualitative comparative analysis. Information Technology & People, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ITP-06-2020-0418
Shen, Y., Hu, W., & Hueng, C. J. (2018). The Effects of Financial Literacy, Digital Financial Product Usage and Internet Usage on Financial Inclusion in China. MATEC Web of Conferences, 228, 05012. https://doi.org/10.1051/matecconf/201822805012
Siddik, M. N. A., Sun, G., Yanjuan, C., & Kabiraj, S. (2014). Financial Inclusion through Mobile Banking: A Case of Bangladesh. Journal of Applied Finance & Banking, 4(6), 109–136.
Sina, P. G. (2017). Financial Contemplation Part 1. Bogor: Guepedia.
Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in FinTech innovation in Germany. Information & Computer Security, 26(1), 109–128. https://doi.org/10.1108/ICS-06-2017-0039
Yanti, W. I. P. (2019). Pengaruh Inklusi Keuangan dan Literasi Keuangan Terhadap Kinerja UMKM di Kecamatan Moyo Utara. Jurnal Manajemen Dan Bisnis, 2. Retrieved from http://jurnal.uts.ac.id/index.php/jmb/article/view/305
Zhou, T., Lu, Y., & Wang, B. (2010). Integrating TTF and UTAUT to explain mobile banking user adoption. Computers in Human Behavior, 26(4), 760–767. https://doi.org/10.1016/j.chb.2010.01.013
Published
2022-01-22
How to Cite
HERMAWAN, Atang; GUNARDI, Ardi; SARI, Lira Mustika.
Intention to Use Digital Finance MSMEs: The Impact of Financial Literacy and Financial Inclusion.
Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 17, n. 1, p. 171-182, jan. 2022.
ISSN 2303-1018.
Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/80641>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.24843/JIAB.2022.v17.i01.p12.
Issue
Section
Articles
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
