IDEAS home Printed from https://ideas.repec.org/p/lpe/wpaper/201936.html
   My bibliography  Save this paper

Financial Technology in Indonesia: A Fragmented Instrument for Financial Inclusion?

Author

Listed:
  • Chaikal Nuryakin

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

  • Lovina Aisha
  • Natanael Waraney Gerald Massie

Abstract

This study aims to delve deeper into the discussion on how the ?nancial inclusion progress in Indonesia could be affected by the growing ?ntech industry. We shall comprehensively discuss the current state of the platforms in the country, including the potential bene?ts and challenges. Such af?ictions include the hugely-concentrated deposit market, to begin with and the discrepancies between regulators and the technological changes, while the high internet and mobile phone penetration are only one of the many advantages the country are endowed with. The study aims to highlight the challenges faced in increasing ?nancial inclusion before the ?ntech platforms begin to ?ourish and how they differ to the current condition. Novel and relevant policy recommendations are also provided in the latter parts of the discussion.

Suggested Citation

  • Chaikal Nuryakin & Lovina Aisha & Natanael Waraney Gerald Massie, 2019. "Financial Technology in Indonesia: A Fragmented Instrument for Financial Inclusion?," LPEM FEBUI Working Papers 201936, LPEM, Faculty of Economics and Business, University of Indonesia.
    • Handle: RePEc:lpe:wpaper:201936
    as

    Download full text from publisher

    File URL: https://www.lpem.org/repec/lpe/papers/WP201936.pdf
    File Function: First version, 2019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre-Olivier Gourinchas & Jonathan A. Parker, 2001. "The Empirical Importance of Precautionary Saving," American Economic Review, American Economic Association, vol. 91(2), pages 406-412, May.
    2. Chaikal Nuryakin & Prani Sastiono & Faradina Alifia Maizar & Pyan Amin & Nanda Puspita & Wahyu Pramono & Christine Tjen, 2018. "Toward Higher Financial Inclusion Rate: Service Quality, Costs Of Access, And Awareness," LPEM FEBUI Working Papers 201821, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jul 2018.
    3. Finke, Michael S. & Huston, Sandra J., 2013. "Time preference and the importance of saving for retirement," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 23-34.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sugandi, Eric Alexander, 2021. "The COVID-19 Pandemic and Indonesia’s Fintech Markets," ADBI Working Papers 1281, Asian Development Bank Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Butler, Monika & Teppa, Federica, 2005. "Should You Take a Lump-Sum or Annuitize? Results from Swiss Pension Funds," CEPR Discussion Papers 5316, C.E.P.R. Discussion Papers.
    2. Xiaoqin Sun & Yuhai Su & Honglei Liu & Chengyou Li, 2022. "The Impact of House Price on Urban Household Consumption: Micro Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    3. Aysit Tansel & Ceyhan Ozturk & Erkan Erdil, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," Koç University-TUSIAD Economic Research Forum Working Papers 2118, Koc University-TUSIAD Economic Research Forum.
    4. Audrey Desbonnet & Jean-Olivier Hairault, 2010. "Inégalité de patrimoine et progressivité de l'impôt," Economie & Prévision, La Documentation Française, vol. 0(2), pages 21-41.
    5. Edouard Challe & Xavier Ragot, 2016. "Precautionary Saving Over the Business Cycle," Economic Journal, Royal Economic Society, vol. 126(590), pages 135-164, February.
    6. Sebastian Barnes & Garry Young, 2003. "The rise in US household debt: assessing its causes and sustainability," Bank of England working papers 206, Bank of England.
    7. Chaigneau, Pierre, 2013. "Explaining the structure of CEO incentive pay with decreasing relative risk aversion," Journal of Economics and Business, Elsevier, vol. 67(C), pages 4-23.
    8. AJ A. Bostian & Christoph Heinzel, 2018. "Comparative precautionary saving under higher-order risk and recursive utility," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 43(1), pages 95-114, May.
    9. Chris Elbers & Jan Willem Gunning & Bill Kinsey, 2007. "Growth and Risk: Methodology and Micro Evidence," The World Bank Economic Review, World Bank, vol. 21(1), pages 1-20.
    10. Lorenzo Pozzi, 2011. "The Time-Varying Volatility of Earnings and Aggregate Precautionary Savings," Tinbergen Institute Discussion Papers 11-144/2, Tinbergen Institute.
    11. Feigenbaum James A. & Li Geng, 2012. "Life Cycle Dynamics of Income Uncertainty and Consumption," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-49, May.
    12. Hannah Zillessen, 2022. "Uncertainty, Citizenship & Migrant Saving Choices," Economics Series Working Papers 1008, University of Oxford, Department of Economics.
    13. Du, Houyang & Guo, Ye & Liu, Xuan, 2018. "How does the timing of markets affect optimal monetary and fiscal policy in sticky price models?," Economic Modelling, Elsevier, vol. 72(C), pages 237-248.
    14. H. Youn Kim & José Alberto Molina & Ka Kei Gary Wong, 2022. "Durable Goods and Consumer Behavior with Liquidity Constraints: Evidence from Norway," Boston College Working Papers in Economics 1047, Boston College Department of Economics.
    15. Maude Toussaint‐Comeau, 2021. "Liquidity constraints and debts: Implications for the saving behavior of the middle class," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 479-493, July.
    16. Mairead Roiste & Apostolos Fasianos & Robert Kirkby & Fang Yao, 2021. "Are Housing Wealth Effects Asymmetric in Booms and Busts?," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 578-628, May.
    17. Primiceri, Giorgio E. & van Rens, Thijs, 2009. "Heterogeneous life-cycle profiles, income risk and consumption inequality," Journal of Monetary Economics, Elsevier, vol. 56(1), pages 20-39, January.
    18. Wilson, Bonnie, 2003. "Diversification of risk and saving," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(4), pages 697-712.
    19. Richard M. H. Suen, 2011. "Concave Consumption Function and Precautionary Wealth Accumulation," Working papers 2011-23, University of Connecticut, Department of Economics.
    20. Mauro Mastrogiacomo & Rob Alessie, 2015. "Where are the retirement savings of self-employed? An analysis of 'unconventional' retirement accounts," DNB Working Papers 454, Netherlands Central Bank, Research Department.

    More about this item

    Keywords

    ?nancial inclusion — ?nancial technology — Indonesia — digital divide;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:wpaper:201936. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arianto Patunru (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.