Discovering Branchless Banking Adoption under Inclusive Financial Plan in Indonesia

Abstract

Indonesia has devised a financial inclusion plan that envisage for all society layers to be served by financial instruments which possess good quality, accessibility, and affordability. One of the programs is called LAKU PANDAI that allows customers to use agents as intermediary channel. Societies face financial exclusion because of access, marketing, condition, price, and self-exclusion with regards to financial services and/or institutions. This study explores the fundamental reasons why financial exclusion occurs in Indonesia and how is their willingness to try branchless banking from banked and unbanked perspectives. This study also explores customers who live in urban and rural areas by using qualitative methodology. This study found that financial exclusion occurs to both customers who live in rural and urban areas. Customers were also found to have intention of willingness to try to branchless banking based on convenience, familiarity, and perceived risk towards the service.