THE INFLUENCE OF FINTECH AND FINANCIAL LITERACY ON INCLUSION FINANCE IN DKI JAKARTA

Abstract

Along with the changing times, technological developments are now starting to grow rapidly. This rapid technological development was then able to change the cultural order and mindset of society. With technological developments in the financial sector, on July 30 2019 OJK conducted a press release regarding youth financial literacy and inclusion. OJK seeks to increase financial literacy and inclusion, especially for the younger generation and is expected to be able to drive the economy and society so that they are more literate about financial literacy. Based on regional strata, for urban areas the financial literacy index reached 41.41% and the financial inclusion of urban communities was 83.60%, while the financial literacy and inclusion indexes for rural communities were 34.53% and 68.49%. The rapid development of Fintech is certainly very useful for society. It is noted that fintech developments include fintech payments and lending. In May 2019, lending reached IDR 33.2 trillion, while fintech payment transactions reached IDR 47.1 trillion in 2018. Based on data from the Legal Aid Institute (LBH) in June 2019, there were 4,500 cases that had been reported related to Fintech Lending. In addition, it was reported that there were 683 illegal Fintech P2P lending entities. The type of research used in this study was quantitative research. The quantitative research method is a type of research whose specifications are systematic, planned and clearly structured from the start to the creation of the research design. The research was conducted on the people of DKI JAKARTA by selecting the sample using a purposive sampling technique. The selected sample is people aged more than 20 years and domiciled in Jakarta, a total of 200. The data obtained through questionnaires is distributed to respondents. The data is analyzed met the requirements of validity and reliability testing. Hypothesis testing is done by multiple regression analysis. The findings obtained from the research above are that Financial Technology has a positive and significant effect on Financial Inclusion, Financial Literacy has a positive and significant effect on Financial Inclusion. positive impact on financial inclusion in DKI Jakarta. This can be interpreted that the better the financial knowledge, behavior and attitude possessed by the community and the more use of financial technology or fintech in society, this can actively enjoy public financial inclusion in DKI Jakarta.