ECONOMIC BEHAVIOR OF MICRO AND SMALL BUSINESS HOUSEHOLDS IN A BRANCHLESS BANKING SYSTEM
https://doi.org/10.22146/jieb.31493 Ktut Silvanita Mangani(1*), Yusman Syaukat(2), Bustanul Arifin(3), Mangara Tambunan(4)
(1) School of Business, Institut Pertanian Bogor; Department of Magister of Management, Graduate Program, Universitas Kristen Indonesia, Indonesia
(2) Faculty of Economics and Management, Institut Pertanian Bogor, Indonesia
(3) Faculty of Agricultural, Universitas Lampung, Indonesia
(4) Faculty of Economics and Management, Institut Pertanian Bogor, Indonesia
(*) Corresponding Author
Abstract
Introduction: This study aims to analyze how the existence of branchless banking in rural areas affects the economic behavior of the micro and small business households, and vice versa. Background Problem: Within the framework at inclusive finance program, Indonesia has implemented the branchless banking model. However, the impact of the branchless banking system to micro and small business household has not discussed yet. Research Method: The research was conducted in Bogor District, with many remote villages adjacent to Jakarta, a capital city of Indonesia. A total of 97 samples of micro and small business households were selected from 13 sub-districts. The estimation was conducted using 2SLS method. The model describes the existing condition that explains the uniqueness of the economic behavior of the micro and small business households in a branchless banking system. Novelty: Studies related to branchless banking generally analyzed from the perspective of banking institutions. However, this study focusses on supply side, namely it analyzDe the household economic behavior using simultaneously equation model. Findings: The results show that the presence of branchless banking agents, as measured by the value of the transactions conducted by the households, have little effect on the economic behavior of the micro and small business households. On the other hand, the economic behavior variables which are expected to affect the value of the transactions do not occur. The results explain that the utilization of the banking services provided through agents in the branchless banking system is in the form of payment transactions. In addition, the presence of branchless banking in rural areas has not affected production activities and vice versa. Conclusion: This study suggests a further study to find out the factors that make business actors unwilling to perform financial transactions related to their production activities through branchless banking agents.
Keywords
Full Text:
PDFReferences
Azriani, Z., (2008). Peranan Bank Perkreditan Rakyat Binaan Bank Nagari terhadap kinerja usaha kecil di Sumatera Barat [master thesis]. Bogor (ID): Institut Pertanian Bogor.
Bagi, F.L., and I.J. Singh, I, (1974). A microeconomic model of farm decisions in LDC: A simultaneous equation approach. Economics and Sociology Occasional Paper No. 207. Department of Agricultural and Rural Sociology. The Ohio State University. Columbus, Ohio.
Bank Indonesia, (2014). Booklet keuangan inklusif bank Indonesia. Available at: http://www.bi.go.id/id/perbankan/keuanganinklusif/edukasi/Contents/Buku%20Saku%20Keuangan%20Inklusif.pdf, accessed on September 25th, 2015.
Chuchuen, C., (2016). The perception of mobile banking adoption: The study of behavioral, security, and trust in Thailand. International Journal of Social Science and Humanity. 6(7):547.
Derosari, B.B., (2014). Pengaruh kredit dan bantuan modal pada perilaku ekonomi dan kesejahteraan rumahtangga tani di provinsi Nusa Tenggara Timur [ The effect of credit and capital aid on the economic behavior and welfare of household household in East Nusa Tenggara province ]. Unpublished Dissertation, Graduate School. Bogor: IPB.
Firpo, J., (2005). Banking the unbanked: Technology’s role in delivering accessible financial services to the poor. SEMBA Consulting, Oakland, CA. available at: http://www. sevaksolutions. org/docs/Banking% 20the% 20Unbanked. Pdf.
Frani, O., (2017). Dampak branchless banking sebagai strategi inklusi keuangan terhadap tingkat kompetisi industri perbankan Indonesia. Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya 5(2):1-7.
Gujarati, D.N., (1988). Basic econometrics. Second Edition. McGraw-Hill Book Company, New York .
Heatubun, A.B., (2001). Pemberdayaan dan kegiatan petani multikomoditi [Empowerment and activity of multi commodity farmers]. Unpublished Masters Thesis, Graduate School. Bogor: IPB.
Hishigsuren, G., (2006). Information and communication technology and microfinance: Options for Mongolia (No. 42). ADB Institute Discussion Papers.
Ivatury, G., and Mas, I., (2008). The early experience with branchless banking. Focus Note 46. Washington, D.C.: CGAP.
Jain, C.S., (2015). A study of banking sector's initiatives towards financial inclusion in India. Journal of Commerce and Management Thought, 6(1), 55.
Khanan, Pujiyono., (2016). Aspek yuridis keberadaan agen dalam model branchless banking di sistem perbankan Indonesia. Jurnal Privat Law IV (1):13-20.
Khattab, I., Balola, Y. and Eldabi, T., (2012). Factors influencing branchless banking for microfinance in Sudan: Theoretical perspectives and future directions. European, Mediterranean and Middle Eastern conference on information systems. Available at: http://www.iseing.org/emcis/emcis2012/EMCISWebsite/proceedings/154. pdf
Koutsoyiannis, A., (1977). Theory of Econometrics. Basingstoke (GB): Palgrave Macmillan Limited.
Kumar, N., (2013). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5(1), 4-19
Mas, I. (2009). The economics of branchless banking. Innovations: Technology, Governance, Globalization, 4(2), 57-75.
McKay, C. and Pickens, M., (2010). Branchless banking 2010: Who’s served? At what price? What’s next? (Vol. 66). CGAP Focus Note.
Montazemi AR, Qahri-Saremi H. 2015. Factors affecting adoption of online banking: A meta-analytic structural equation modeling study. Information & Management 52(2):210–226.
Otoritas Jasa Keuangan, (2015). Laporan kinerja OJK 2015. Tersedia pada http://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/laporan-kinerja-ojk-2015/FA_Laporan kinerjaOJK2015rev070116_II.pdf, accessed on April 10th, 2016.
Phanthanukitithaworn, C., Sellitto, C., and Fong, M., (2015). User intentions to adopt mobile payment services: A study of early adopters in Thailand. The Journal of Internet Banking and Commerce. 20(1):1-29.
Permadi, A.D., (2017). Persepsi masyarakat desa Pendem Berbah terhadap teknologi branchless banking. [mini thesis]. Yogyakarta (ID): Universitas Negeri Yogyakarta.
Sanjaya, I., (2014). Inklusi keuangan dan pertumbuhan inklusif sebagai strategi pengentasan kemiskinan di Indonesia [Inclusion of finance and inclusive growth as a poverty reduction strategy in Indonesia]. Unpublished Masters Thesis, Graduate School. Bogor: IPB.
Sayaka, B., K.K. Dewa, S. Herman, S.R. Rudy, Supriyati, and A. Askin., (2011). Peningkatan akses petani terhadap permodalan di daerah lahan marjinal [Increasing farmers access to capital in marginal land areas]. Unpublished Research Seminar Paper. Center for Socioeconomic and Agricultural Policy (PSEKP). Agency for Agricultural Research and Development, Ministry of Agriculture.
Secioktaviany, Z.A., (2016). Optimalisasi manajemen risiko sebagai upaya preventif risiko hukum pada bank penyelenggara branchless banking di Indonesia. Privat Law 4(2):87-93.
Sinaga, B.M., (2011). Metode Pengumpulan Data [Method of collecting data]. Agricultural Economics Study Program. Faculty of Economics and Management of Graduate School. Bogor: IPB.
Singh, I., L. Squire, and J. Strauss, (1986). The basic model: theory, empirical results, and policy conclusions. Agricultural household models: Extensions, applications, and policy, 17-47. Baltimore: The Johns Hopkins University Press.
Siregar, H., (2009). Makro-Mikro Pembangunan [Macro-Micro of Development]. Collection of Papers and Essays. Bogor: Institut Pertanian Bogor Press.
Untoro, P.R. Widodo, W. Yuwana, K. Dewi, and R. Cristina, (2014). Layanan keuangan digital: Hambatan dan faktor-faktor penentu keberhasilan [Digital financial services: Constraints and critical success factors]. Working Paper. Bank Indonesia.
Weber, D.M., (2012). The impact of information and communication technology on intermediation, outreach, and decision rights in the microfinance industry. ProQuest LLC. 789 East Eisenhower Parkway, PO Box 1346, Ann Arbor, MI 48106.
Wibowo, P.P., (2013). Branchless banking setelah multilisence: ancaman atau kesempatan bagi perbankan nasional. Makalah Persyaratan Sekolah Staf Pimpinan Bank Indonesia (SESPIBI) Angkatan XXXI, Jakarta (ID): SESPIBI.
World Bank, (2014). Global financial development report 2014. http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTGLOBALFINREPORT/0,,contentMDK:23489619~pagePK:64168182~piPK:64168060~theSitePK:8816097,00.html, accessed on June 25th, 2015.
Yuwono, M., (2017). Strategi penigkatan minat petani menggunakan produk dan jasa keuangan formal dalam rangka keuangan inklusif [dissertation] Bogor (ID): Institut Pertanian Bogor.
DOI: https://doi.org/10.22146/jieb.31493
Article Metrics
Abstract views : 4875
| 
views : 4414
Refbacks
- There are currently no refbacks.
Copyright (c) 2019 Journal of Indonesian Economy and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
| Journal of Indonesian Economy and Business |
| The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License |
| © 2019 Journal of Indonesian Economy and Business | Visitor Statistics |