Proceedings of the 5th International Conference on New Ideas in Management, Economics and Accounting
The Role of Financial Technology Toward Financial Inclusion in Indonesia: Chance and Challenge
Lino Harsih Khaerunnisa
The trend of financial technology has been increase significantly for the last two years. It can be measured by the number of total transaction which reached USD 15.022 billion and the players in the Industry which grow up to 78 percent. The number of mobile banking user in Indonesia also increases higher than other Asian Country and even global average. Based on Indonesia Gross Domestic Product (GDP), financial service becomes the highest sector growth. However, the benefits of all this development have not spread evenly among Indonesian society. This is reflected on Gini coefficient that has risen over the past decade. Indonesia is still within the catchup phase of economic development. Improving financial inclusiveness may assist this regard. Access to financial sector believed could lead people to better opportunity and help them out of poverty. To enhance financial inclusion, more attention could be given to less costly methods of services provision such as mobile phone banking or mobile money. This is absolutely brings chance and challenge for financial technology industry. It includes product characteristic, regulation, industry competitiveness and customers.
Keywords: Financial Technology, Financial Inclusion, Internet of Thing.