Financial Literacy, Individual Characteristic and Financial Inclusion: A Study on Lecturers in Palembang

Fransiska Soejono,Anastasia Sri Mendari

doi:10.11594/ijmaber.03.02.12

Abstract

This study aims to analyze the effect of financial literacy, gender, age, income, and education on financial inclusion. This research involves university lecturers in the city of Palembang. The snowball sampling technique was used in this study and a total of 153 questionnaire forms were returned and could be processed. Hypothesis testing using multiple linear regression and SPSS assistance. The results showed that financial literacy and income had a positive and significant effect on financial inclusion, while other variables, namely gender, age, and education had no significant effect on financial inclusion. The implication is that the government through the Financial Services Authority (OJK) still needs to educate university lecturers in Palembang, especially those with below-average income, with the hope that the financial literacy of lecturers in Palembang will increase and all lecturers, especially those with low incomes, so that they have sufficient knowledge. to take the decision to have a financial product from a formal financial institution.

Highlights

The results of the 2017 executive opinion survey show that Indonesia's competitiveness ranking is currently 36th and still lagging behind Singapore, Thailand and Malaysia (Schwab, 2017)
The average financial inclusion is 2.35, which means that each person has an average of 2.35 financial products
The significance value for the variables of gender, age, and education is above 5%, this means that the variables of gender, age, and education have no significant effect on financial inclusion

Summary

Introduction

The results of the 2017 executive opinion survey show that Indonesia's competitiveness ranking is currently 36th and still lagging behind Singapore, Thailand and Malaysia (Schwab, 2017). One of the third highest barriers to competitiveness is having limited access to financial institutions. This causes the acquisition of business capital from financial institutions to be an obstacle for the community. The World Bank states that access to finance is the initial stage for achieving wider financial inclusion. This provides greater opportunities for the public to carry out transactions such as depositing, sending and paying money. Indonesia's global competitiveness ranking decreased to 45 in 2018 and fell again to 50 in 2019 and still lags behind Singapore, Malaysia

Objectives

Methods

Results

Conclusion