EFFECT OF FINANCIAL LITERACY ON FINANCIAL INCLUSION WITH SOCIAL CAPITAL AS MEDIATOR (Survey on society of productive age in Regency Bandung)

Abstract

The level of financial literacy and financial inclusion of Indonesian society especially productive age is still very low compared to 3 ASEAN member states (Thailand, Malaysia and Singapore). Therefore, the government through the Financial Services Authority (OJK) focuses on increasing financial literacy and financial inclusion especially productive population. Bandung Regency is one of the districts whose population is dominated by productive age. Social capital is expected to be a mediator in increasing financial literacy and financial inclusion. This study aims to determine the role of social capital as a mediator between financial literacy and financial inclusion as well as research the direct impact of financial literacy on financial inclusion. The population of this study is the entire population of productive age in Bandung regency amounted to 2,379,411 inhabitants. Research from this study using the technique of non-probability sampling with amount sample of 400 people. This study adopted and used Sobel and Kenny and Baron tests to examine the effects of social capital in the relationship between financial literacy and financial inclusion. The results of this study found that financial literacy has a significant effect on financial inclusion with social capital as mediation in productive age society in Bandung regency.