Financial and digital financial literacy through social media use towards financial inclusion among batik small enterprises in Indonesia.

Batik, an Indonesian textile art form, holds immense economic and cultural importance. Small and medium enterprises (SMEs) specialising in batik play a crucial role in Indonesia's economic growth and cultural preservation, contributing significantly to the gross domestic product (GDP) and preserving the nation's heritage. Nevertheless, these enterprises face several challenges, such as slow growth and limited access to credit. The batik industry also lags in financial literacy and the adoption of digital marketing strategies, hindering its development. This quantitative study aims to investigate the relationship between financial literacy, digital financial literacy, and financial inclusion in batik SMEs and also examined the moderating effect of online social networks. A survey was conducted involving 535 managers, owners, and financial officers of small batik enterprises. Subsequently, the SmartPLS statistical analysis method was employed for data analysis. The results demonstrate that financial literacy and digital financial literacy play a significant role in accessing financial inclusion for batik small enterprises. Moreover, the utilisation of social media was found to moderate these relationships, amplifying the impact of financial and digital literacy on financial inclusion. The findings contribute to the existing knowledge, provide insights for enhancing batik small enterprises, and propose a digital financial model to promote financial inclusion.

Developing the capability of digital financial literacy in developing countries: A Case of online loan for small entrepreneurs.

The rapid growth of digital financial services especially during the COVID-19 outbreak, is a factor accelerating the use of online loan applications that inevitably require the knowledge of digital finance. This study used the behavior change theory and digital financial literacy to identify relevant and correlated variables to confirm positive motivational factors on digital financial skills and capability. Structure equation modeling (SEM) and path analysis were applied to find the correlation and confirm the proposed hypotheses presented. There were 400 samples of small entrepreneurs from different provinces, and online questionnaires were used for data collection. The findings showed that the knowledge and motivation variables were related and had a positive effect. It contributes to continuously building up the skills and capabilities of small entrepreneurs who need to develop their capabilities in digital financial literacy adequately in line with the changes in business and technology after the outbreak of COVID-19. This concept can apply to online loan policy for small entrepreneurs trained with motivating courses who accepted digital finance literacy's usefulness.