Millennials Financial Inclusion, the Catalyst for the Increases Financial Inclusion in Indonesia

Indonesia already had National Strategy for Financial Inclusion (SNKI) as the national strategy to increases financial inclusion level in Indonesia. One of the objectives is to achieve financial inclusion index at 90% by 2024. Financial inclusion index itself can be defined as the percentage of population that already had access to formal financial services. To know the percentage of achievement, every year National Council for Financial Inclusion (DNKI) held National Survey for Financial Inclusion.

The results of national survey of financial inclusion show the progression over the years. For the account usage indicator, in 2013 only 59,74% but in 2021 already achieved 83,6% with the positive trends and for the account ownership indicator, in 2014 only 31,3% but in 2021 the realization 65,4%.

The big question is who can create this significant improvement?

In my opinion, the millennials are the game changer for these significant improvements. Based on Indonesia Millennials Report 2022, 90% of millennials already have a bank account, with the usage of internet banking services 22% and digital bank accounts 11%. No wonder millennials have the significance for the financial inclusion because they have access to technology and the breadwinners for the family.

The next question is, what’s next?

I think for millennials, we should increase the cashless transaction to increases the efficiency money flow. There are 72% of millennials already own cashless financial products, with 46% have e-wallet and 4% have e-money. Maybe for e-money with the card based, we have the difficulties to increases the usage due to limitation facilities. But for e-wallet or e-money with the server based, I think we can increase the usage, because there are the tremendous innovations in Indonesia called QRIS (QR Code Indonesian Standard). By using QRIS, the flow of money become very fast. We can use every providers of e-wallet or e-money server based by using one QR (QRIS). We should promote QRIS more massive so the number of users can significantly increase.

 

Jakarta, December 14^th 2022,

@Raynaldoith