The Impact of Financial Literacy, Social Capital, and Financial Technology on Financial Inclusion of Indonesian Students

TL;DR

This study investigates how financial literacy, social capital, and financial technology influence financial inclusion among Indonesian students, highlighting the importance of improving financial literacy and promoting financial technology use.

Contribution

It provides empirical evidence on the positive impact of financial literacy, social capital, and financial technology on financial inclusion among students in Indonesia.

Findings

Financial literacy, social capital, and financial technology significantly influence financial inclusion.

Financial literacy needs enhancement to bridge the gap with financial inclusion.

Students should become advocates and users of financial technology to promote financial inclusion.

Abstract

This study aims to analyze the impact of financial literacy, social capital and financial technology on financial inclusion. The research method used a quantitative research method, in which questionnaires were distributed to 100 active students in the economics faculty at 7 private colleges in Tangerang, Indonesia. Based on the results of data processing using SPSS version 23, it results that financial literacy, social capital and financial technology partially have a positive and significant influence on financial inclusion. The results of this study provide input that financial literacy needs to be increased because it is not yet equivalent to financial inclusion, and reducing the gap between financial literacy and financial inclusion is only 2.74%. Another benefit of this research is to give an understanding to students that students should be independent actors or users of financial technology products and that students should become pioneers in delivering financial knowledge, financial behavior and financial attitudes to the wider community.