The Role of Financial Inclusion in Improving the Welfare of Rural Communities: A Study in West Java Province

Asep Sutisna; Rudi Budiman

Authors

Asep Sutisna Faculty of Economics and Business, International Islamic University of Indonesia
Rudi Budiman Faculty of Economics and Business, International Islamic University of Indonesia

Keywords:

Financial Inclusion, Welfare, Rural Communities, West Java, Formal Financial Services

Abstract

This study aims to examine the role of financial inclusion in improving the welfare of rural communities in West Java Province. Using a quantitative approach through surveys and a qualitative approach through semi-structured interviews, this study identifies various barriers that hinder rural communities' access to formal financial services. The results show that access to savings, credit, insurance, and digital payments contribute positively to community welfare. However, barriers such as low financial literacy, limited infrastructure, negative perceptions of formal financial institutions, and high transaction costs remain major challenges. This study suggests the need for more effective strategies to expand access to financial services in rural areas through strengthening financial literacy, infrastructure development, and formulating more inclusive policies.

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