"Financial technology is expected to be able to improve standards of living since we can conduct transactions in a more modern, easier, and efficient manner," a lecturer from the University's Economy and Business Faculty, Prof. Ilya Avianti, said during a webinar on the 'Fintech Ecosystem in Indonesia' on Saturday.
According to Avianti, financial inclusion is important since it is tied to the prosperity of citizens in a country.
The higher the financial inclusion index of a nation, the more prosperous its citizens are, she explained.
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The National Survey of Financial Literacy and Inclusion by the Financial Services Authority (OJK) in 2019 pegged the nation's financial inclusion index at 76.19 percent, an increase from 67.8 percent in 2016.
Despite this increase, Indonesia is still behind several countries in the Southeast Asian region, such as Thailand, which has a financial inclusion level of 82 percent, Avianti said.
In addition to financial inclusion, financial literacy is also important amid the growth of the financial technology sector, she added. The OJK survey also indicated that financial literacy in Indonesia reached 38.03 percent in 2019, an increase from 29.7 percent in 2016, she noted.
Despite the fact that there are still many Indonesians who do not know how to use financial services, the need to use financial technology has been increasing since the emergence of COVID-19 in Indonesia, such as the use of digital wallets for online shopping, Avianti pointed out.
This sector is projected to continue to grow, triggered by innovation and advancement of digital technology, in addition to the people's needs amid the ongoing pandemic, she added.
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Translator: Natisha A, Fadhli Ruhman
Editor: Suharto
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