Friday
April 16
2021

Analysis: Grassroot Strategy to Realize Financial Inclusion in Indonesia

By Sudibyo Wiradji

Many Indonesians, especially those living in rural areas, remain unbanked or have yet to become part of financial inclusion.

Being unbanked means not having access to financial products and services such as transactions, payments, savings accounts, credit and insurance.

Data shows that unbanked citizens account for an estimated 66 percent of the country’s 275 million population.

Given the large number of people with no financial accounts, breakthrough efforts must aim for greater financial inclusion. It has been proven that financial inclusion can help the poor and most vulnerable in society break out of poverty, reduce inequality, develop entire communities and drive economic growth.

One of the breakthrough ways is by utilizing financial technology (fintech) to expand financial inclusion to reach unbanked people, with a grassroots approach.

Photo courtesy of Jan Truter.

Source: The Jakarta Post (link opens in a new window)

Categories
Finance, Technology
Tags
financial inclusion, financial services, fintech, LMICs, technology