nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2019‒07‒08
two papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. FinTech in the Pacific Island Countries: Challenges and Opportunities By Tientip Subhanij; Ralph Chow Wen Kang
  2. Financial Technology in Indonesia: A Fragmented Instrument for Financial Inclusion? By Chaikal Nuryakin; Lovina Aisha; Natanael Waraney Gerald Massie

  1. By: Tientip Subhanij (Macroeconomic Policy and Financing for Development Division, ESCAP); Ralph Chow Wen Kang (Macroeconomic Policy and Financing for Development Division, ESCAP)
    Abstract: Each of Pacific island countries share similar challenges and opportunities as small and remote island economies, with limited natural resources, narrowly-based economies, large distances away from major markets, and vulnerable to external shocks. Yet these countries are committed to the promotion of financial inclusion to its citizens via the harnessing of digital technology and believe that financial education plays an important role in skills transfer through the improvement of digital and financial literacy. Many Pacific Island countries have worked with agencies such as the Pacific Financial Inclusion Programme (PFIP) to fund innovative financial services
    Date: 2019–03
  2. By: Chaikal Nuryakin (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia); Lovina Aisha; Natanael Waraney Gerald Massie
    Abstract: This study aims to delve deeper into the discussion on how the ?nancial inclusion progress in Indonesia could be affected by the growing ?ntech industry. We shall comprehensively discuss the current state of the platforms in the country, including the potential bene?ts and challenges. Such af?ictions include the hugely-concentrated deposit market, to begin with and the discrepancies between regulators and the technological changes, while the high internet and mobile phone penetration are only one of the many advantages the country are endowed with. The study aims to highlight the challenges faced in increasing ?nancial inclusion before the ?ntech platforms begin to ?ourish and how they differ to the current condition. Novel and relevant policy recommendations are also provided in the latter parts of the discussion.
    Keywords: ?nancial inclusion — ?nancial technology — Indonesia — digital divide
    JEL: G21 G28
    Date: 2019–05

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