GoTo Financial, a subsidiary of the GoTo Group, is the Gateway to Indonesia's Financial Inclusion

As a developing country, one of the benchmarks for economic and community welfare can be measured through the level of financial literacy and inclusion. Unfortunately, this is still a homework, when the government's target is to set financial inclusion to reach 90% It is predicted that this will only be achieved in 2024.

More specifically, according to President Joko Widodo, digital financial literacy in Indonesian society today only reached 35,5%. On the other hand, Indonesia's financial inclusion index also lags behind other ASEAN countries. In 2019, the financial inclusion index in Indonesia reached 76%, lower than Singapore at 86%, Malaysia at 85%, and Thailand at 82%.

This lag can be boosted in various ways. From the regulator's point of view, OJK has issued The roadmap which focuses on accelerating regional financial access in the period 2021-2025. Another way that should also be taken into account is the innovations produced by technology industry players through the implementation of digital-based financial solutions that are able to reach the wider community efficiently and optimally. Like GoTo Financial, which is able to appear as an ecosystem driving financial inclusion in the country.

GoTo Financial is a technology group that is part of GoTo, which has services to support public financial activities through GoPay and GoPaylater, as well as providing business solutions for business actors ranging from MSMEs to large companies. These business solutions include Midtrans (the leading payment gateway), Moka and GoBiz Plus (the largest point of sales network in Indonesia), to the GoBiz and Selly platforms that can improve online business efficiency.

The development of technology financial services encourages financial inclusion

Indeed, the evolution of financial services always follows the times and people's lives. Along with this evolution, challenges after challenges that occur around us have become "normal" which are usually resolved with technological developments. One example of the existing challenges is the habitual behavior with cash, and the "foreignness" of banking facilities for rural and low-income people.

This condition then encourages the need for comprehensive and innovative steps from various parties, such as those carried out by fintech players who seek to produce innovations that make it easier for the public to be able to take advantage of digital payments as the initial gateway for other financial services.

As a digital payment provider, GoPay is also here to accelerate this. Moreover, in the near future, GoPay will integrate services with Bank Jago. The integration plan is a real example of GoPay, which started from 'micro' payments to become the community's initial gateway to enter 'macro' financial services or formal financial services promoted by Bank Jago.

GoTo Financial's work to finalize financial inclusion

Back to discussing GoTo Financial, in research released by the Demographic Institute FEB UI, GoTo Financial is seen as one of the most comprehensive digital financial ecosystems in promoting financial inclusion.

Survey data shows that the GoPay e-wallet platform is claimed to be the first gateway for people to recognize digital-based non-cash payments, or as a percentage, as many as 46% of consumers rely on GoPay as their first cashless payment transaction.

Furthermore, GoPay helps people who have not previously been exposed to banking and non-banking products and services (unbanked & underbanked society) to be able to access formal financial services. Based on research, 1 in 5 GoPay consumers do not have or do not actively use a bank account.

Not only that, GoPay has also succeeded in educating and encouraging inclusion in financial services for communities that were previously unreachable by banking, as seen from the interest of users to open bank accounts through GoPay (unbanked to banked society). The survey from LD-FEB UI stated that 1 in 4 consumers want to open a bank account via GoPay.

Furthermore, the LD-FEB UI survey stated, GoPay has succeeded in becoming a pintu consumers in utilizing other financial services. It is said, users use GoPay for various things from financial management to digital investment.

Consumers from various educational, employment and income backgrounds equally use GoPay for digital investments, such as mutual funds and gold. This breaks the perception that investment can only be accessed by people with income and higher education.

Looking at the intensive moves above in growing significant financial inclusion —as GoTo Financial does — to achieve the target expected by the government was not a difficult matter.

After this, the most important thing is to maintain a much better commitment and synergy among stakeholders to create a financially literate society as a whole. If achieved, it is possible that the developments built from this collaboration can advance the potential for economic recovery for the people of Indonesia.

This article is endorsed by Midtrans.