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Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countriesfrom Online Transaction in Developing-8 Countries Abstract: The world has reached the industry 4.0, where technological developments have been widely applied to electronic payment, with no exception on Muslim countries. This study aims to investigate association between sociodemographic and financial inclusion in country D-8 in the probability of using online financial transactions. Using The Global Findex 2017 from D-8 Organization for Economic Cooperation included in OIC countries and the logistic regression, this study explores the effect of sociodemographic namely gender, education, income status and working status on online financial transactions users. Using control variables such as Gross Domestic Product (GDP), Inflation and Exchange reta, results show that, there is a gender imbalance between men and women in using online transaction to access formal services. On the other hand, individuals who have higher level of education, upper-middle income and high-income, and those who work are more financially inclusive in using online transaction. In conclusion, those with higher sociodemographic status are more likely to use online transaction to access formal financial services. The government and third parties can use this study as policy recommendations for expanding online transaction as well as financial inclusion in developing Muslim countries

Author

Listed:
  • Dyah Titis Kusuma Wardani

    (Universitas Muhammadiyah Yogyakarta)

  • Navi'ah Khusniati

    (Universitas Gadjah Mada)

  • Susilo Nur Aji Cokro Darsono

    (Universitas Muhammadiyah Yogyakarta)

Abstract

No abstract is available for this item.

Suggested Citation

  • Dyah Titis Kusuma Wardani & Navi'ah Khusniati & Susilo Nur Aji Cokro Darsono, 2023. "Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countriesfrom Online Transaction in Developing-8 Countries Abstract: The world has reached the ind," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 67-86, Juni.
    • Handle: RePEc:lpe:efijnl:202305
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    More about this item

    Keywords

    financial inclusion; online financial services; individual characteristics; socio-economic status; Muslim countries;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General

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