Digital Finance For Improving Financial Inclusion Indonesians’ Banking

Estu Widarwati, Asep Solihin, Nunik Nurmalasari


A digital finance service breakthrough is essential to get better financial assistance to optimize financial inclusion, and the effectiveness requires technological support in banking financial services. The study investigates the effect of digital finance on financial inclusion in Indonesians’ banking industry. We develop the new measurement, namely average digital finance (ADF), and use loan transactions to proxy financial inclusion. The samples are six banking during 2013-2019, and we use panel data regression to test the hypothesis and do a robustness check. Our result confirms that ADF positively impacts financial inclusion and finds evidence of bank size’s role in digital finance and financial inclusion. It implicates banks’ strategy for optimizing financial inclusion based on its characteristics such as age, profitability, and efficiency. It contributes to digital finance’s government policy for using explored internet banking and mobile banking stimulatingly.

Widarwati, E., Solihin, A., & Nurmalasari, (2022). Digital Finance For Improving Financial Inclusion Indonesians’ Banking. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 17-30.


financial services; digital finance; mobile banking; internet banking; financial inclusion.

Full Text:



Ahmad, A. A., Green, C., & Jiang, F. (2020). Mobile Money, Financial Inclusion and Development: A Review Concerning African Experience. Journal of Economic Survey, 34(4), 753-792.

Agyekum, F., Locke, S., & Hewa, N. W. (2016). Financial Inclusion and Digital Financial Services: Empirical evidence from Ghana. MPRA Paper No. 82885.

Bank Indonesia. (2016). Digital Financial Inclusion in Indonesia. Bank Indonesia. Jakarta

David-West, O., Adetunji, O., Ajai, O, Aluko, T., Iheanachor, N., Iyoha, F., Kelikume, I., Muritala, O., Nwagwu, I., Salami, A., Taiwo, I., & Umukoro, I. (2018). Digital Financial Services in Nigeria: State of The Market Report. Lagos Business School,

Pan-Atlantic University. Retrieved from

Dabla-Noris, E., Ji, Y., Townsend, R., & Filiz, D.U. (2015). Identifying to Financial Inclusion and Their Impact n GDP and Inequity: Structural Framework for Policy. International

Monetary Fund, No.15/22. International Monetary Fund. Washington DC.

Donovan, K. (2011). Mobile Money for Financial Inclusion. World Bank. Washington DC.

Gas, S. A. (2019). Mobile Money, Cashless Society and Financial Inclusion: Case Study on Somalia and Kenya. Retrieved from

Gabor, D., & Brooks, S. (2017). Digital Revolution in Financial Inclusion: International Development in The FinTech Era. New Political Economy, 22(4), 423-436.

Gomber, P., Alexander, J. K., & Siering, M. (2017). Digital Finance and FinTech: Current Research and Future Research Directions. Journal of Business Economics, 87, 537-580.

GPFI. (2011). The First G20 Global Partnership For Financial Inclusion ( GPFI ) Forum. Retrieved from

Honohan, P., & Beck, T. (2007). Making Finance Work for Africa. World Bank. Washington DC.

Salam Dz, A. (2018). Inklusi Keuangan Perbankan Syariah Berbasis Digital-Banking: Optimalisasi dan Tantangan. Al-Amwal: Jurnal Kajian Ekonomi dan Perbankan Syariah, 10(1), 63-80.

Kithinji, E. (2017). Effect of Digital Banking Strategy on Financial Inclusion Among Commercial Bank in Kenya. (Unpublished Thesis). University of Nairobi, Kenya.

Chavan, A. L., Arora, S., & Koppula, P. (2009). How Mobile Money can Drive Financial Inclusion for Women at the Bottom of the Pyramid (BOP) in Indian Urban Centers. Proceeding HCI International 2009.

Li, J., Wu., Y., & Xiao, J. J. (2020). The Impact of Digital Finance on Household Consumption: Evidence from China. Economics Modelling, 86, 317-326.

Mago, S., & Chitokwindo, S. (2014). The Impact of Mobile Banking on Financial Inclusion in Zimbabwe. Mediterranean Journal of Social Sciences, 5(9), 221-230.

Ozil, P. K. (2018). Impact of Digital Finance on Financial Inclusion and Stability. Borsa Istanbul Review, 18(4), 329-340.

Peruta, M. D. (2015). Mobile Money Adoption and Financial Inclusion Objective: A Macroeconomic Approach through a Cluster Analysis, GREDEG Working Paper No. 2015-49. Retrieved from

Raj, S. D. (2015). Financial Inclusiveness: The Role of Mobile Money and Digital Financial Services. Socrates, 3(1), 95-112.

Senyo, P. K., & Osabutey, E. L. C. (2020). Unearthing Antecedents to Financial Inclusion Through FinTech Innovations. Technovation, 98, 102155.

Sahay, R., Cihak, M., N’Diaye, P., Barajas, A., Mitra, S., Kyobe, A., Nian Y. M., & Reza S.Y. (2015). Financial Inclusion: Can it Meet Multiple Macroeconomics Goals? International Monetary Fund, No.15/17. International Monetary Fund. Washington DC.

Son, T. H., Liem, N. T., & Khong, N.V. (2020). Mobile Money, Financial Inclusion and Digital Payments: The Case of Vietnam. International Journal of Financial Research,

(1), 417-424.

Singh, A. S., Venkataramani, B., & Ambarkhane, D. (2014). Role of Mobile Banking in Financial Inclusion. Retrieved from

Warjiyo, P. (2021). Outlook Ekonomi 2021 dan Bauran Kebijakan Bank Indonesia Untuk Percepatan Pemulihan Ekonomi Nasional. Bank Indonesia. Jakarta.

World Bank Group. (2016). FinTech and Financial Inclusion. World Bank. Washington DC.

DOI: Abstract - 0 PDF - 0


  • There are currently no refbacks.

View My Stats