Empowering Marginalized Unbanked Communities Through Financial Inclusion in Indonesia
DOI:
https://doi.org/10.22225/jj.13.1.2026.208-221Keywords:
financial inclusion, marginalized communities, unbanked populations, financial self-efficacy, financial behavior, financial knowledgeAbstract
Financial inclusion has emerged as a strategic solution for empowering marginalized communities in Indonesia, who often face significant barriers in accessing formal financial services. Challenges such as low financial literacy, limited infrastructure, and unstable income hinder their ability to utilize financial products effectively. Financial Self-Efficacy (FSE), defined as an individual’s belief in their capacity to manage financial matters, plays a crucial role in enhancing their engagement with financial services. A financial inclusion approach that integrates financial literacy, digital technology, and institutional support has proven effective in improving both access to and the usability of financial services for these populations. This study synthesizes various strands of literature to identify best practices in promoting financial inclusion among marginalized groups in Indonesia. The findings highlight that technology-driven financial education programs, inclusive financial products, and collaborative efforts between the government and private sector yield significant positive outcomes. Furthermore, improvements in financial literacy and FSE are associated with healthier financial behaviors, such as consistent saving habits and responsible debt management. An integrated strategy for financial inclusion can reduce socio-economic disparities, enhance individual well-being, and contribute to inclusive economic growth. The study recommends a holistic approach that encompasses education, innovation, and cross-sector collaboration as key strategies to advance financial inclusion in Indonesia.
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