Abstract :
This study evaluates how financial literacy, digital literacy, internet penetration, and consumer confidence influence retail industry growth in Indonesia, emphasizing the mediating role of fintech. In the era of industry 4.0, technology, especially fintech, has transformed conventional financial business models into digital ones, accelerating transactions and financial inclusion. The Covid-19 pandemic has further driven digitalization, although it has posed major challenges for the retail industry. This study aims to determine the actual impact of the development of fintech applications including the influence of financial literacy, digital literacy, internet penetration and consumer confidence levels on the development or growth of retail in Indonesia. This study uses a quantitative method with a focus on analyzing the relationship between financial literacy, digital literacy, internet penetration, and consumer confidence levels in the growth of the retail industry, both directly and through the mediation of fintech growth. The data used are secondary data that include information on the financial literacy index, digital literacy index, internet penetration level, consumer confidence index, fintech adoption level, and retail performance indicators. To overcome incomplete data, imputation and proxy variable methods are used. The analysis was conducted using multiple linear regression to identify direct relationships between variables, and structural equation modeling (SEM) to comprehensively evaluate the influence of fintech mediation. This study shows that financial literacy, digital literacy, and consumer confidence levels have a significant influence on retail growth, both with and without fintech growth mediation. Digital literacy and consumer confidence levels have a positive impact, reflecting that understanding of digital technology and consumer confidence contribute to retail development. Conversely, financial literacy shows a negative influence. Internet penetration does not show a significant influence on retail growth, either directly or through fintech mediation.
Keywords :
Consumer confidence level, Digital Literacy, Financial Literacy, Financial Technology, Internet penetration, Retail.References :
- Agustina, A., Saputra, A. S., Indranika, D. B., Suryoto, Kusumaningsih, O., Mamuri, J., & Pazqara, E. W. (2022). Increasing Digital Literacy in Realizing Golden Indonesia. East Asian Journal of Multidisciplinary Research, 1(10), 2091–2108. https://doi.org/10.55927/eajmr.v1i10.1920
- Annur, C. M. (2023). Literasi Digital Indonesia Naik pada 2022, tapi Budaya Digital Turun. Https://Databoks.Katadata.Co.Id/Datapublish/2023/02/01/Literasi-Digital-Indonesia-Naik-Pada-2022-Tapi-Budaya-Digital-Turun. Diakses Tanggal 23 April 2024. Pukul 18:00 WIB, 1–3.
- Atkinson, A., Mckay, S., Kempson, E., & Collard, S. (2006). Levels of Financial Capability in the UK: Results of a baseline survey.
- Cahyono, T. D., & Rizqi, R. M. (2024). The Impact of Digital Marketing, Financial Literacy, And Digital Literacy on Purchasing Intent for Online Products. Indonesian Business Review, 7(2), 83. https://doi.org/10.21632/ibr.7.2.83-93
- D’Esclapon, T. de R. (2021). A Journal of the COVID Year in Fintech: Payments Edition. Banking & Finance Law Review, 36(3), 389–418.
- Ferdi, M., Amri, M., & Zaenal, M. (2022). Literasi dan Inklusi Keuangan dalam Perekonomian Indonesia : Suatu Aplikasi Panel Data. Jurnal Eknomika Dan Dinmika Sosial, 1 (2)(2829–2324), 51–70.
- Financial Source. (2024). Understanding Retail Sales. https://financialsource.co/retail-sales/
- Geriadi, M. A. D., Sawitri, N. P. Y. R., Wijaya, B. A., & Tri Putri, I. G. A. P. (2023). Pengaruh Literasi Keuangan Terhadap Inklusi Keuangan Melalui Financial Technology. Jurnal Studi Manajemen Dan Bisnis, 10(2), 178–187. https://doi.org/10.21107/jsmb.v10i2.23401
- Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84–96. https://doi.org/https://doi.org/10.1016/j.worlddev.2018.06.020
- Imansyah, R. (2018). Impact of internet penetration for the economic growth of Indonesia. Evergreen, 5(2), 36–43. https://doi.org/10.5109/1936215
- Kartika, D., & Ratnamiasih, I. (2023). Pengaruh Literasi Digital dan Orientasi Kewirausahaan Terhadap Kinerja Usaha Di Sentra Industri Rajut Binong Jati Bandung. Brainy: Jurnal Riset Mahasiswa, 4(2), 82–97. https://doi.org/10.23969/brainy.v4i2.74
- Kemp, S. (2024). Digital 2024: Indonesia. https://datareportal.com/reports/digital-2024-indonesia
- Kristianti, L., & Adi, R. (2024). Indonesia’s internet penetration hits 79.5 percent, trend continues. Antara. https://en.antaranews.com/news/304593/indonesias-internet-penetration-hits-795-percent-trend-continues
- Lewbel, A. (2012). Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models. Journal of Business & Economic Statistics, 30(1), 67–80. https://doi.org/https://doi.org/10.1080/07350015.2012.643126
- Lusardi, A., & Mitchell, O. S. (2023). The Importance of Financial Literacy: Opening a New Field. Journal of Economic Perspectives, 37(4), 137–154. https://doi.org/10.1257/jep.37.4.137
- Mitch, F. (2024). The Long-Term Impacts of Financial Illiteracy. Planned Future. https://plannedfuture.co.uk/the-long-term-impacts-of-financial-illiteracy/
- Mourtzis, D. (2021). Towards the 5th industrial revolution: A literature review and a framework for process optimization based on big data analytics and semantics. Journal of Machine Engineering, 21(3), 5–39.
- https://doi.org/10.36897/jme/141834
- Nazzal, A., Thoyib, A., Zain, D., & Hussein, A. S. (2022). The Effect of Digital Literacy and Website Quality on Purchase Intention in Internet Shopping through Mediating Variable: The Case of Internet Users in Palestine. Webology, 19(1), 2414–2434. https://doi.org/10.14704/web/v19i1/web19163
- Pangestu, S., & Karnadi, E. B. (2020). The effects of financial literacy and materialism on the savings decision of generation Z Indonesians. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1743618
- Prasad, S., Kiran, R., & Sharma, R. K. (2021). Influence of financial literacy on retail investors’ decisions in relation to return, risk and market analysis. International Journal of Finance and Economics, 26(2), 2548–2559. https://doi.org/10.1002/ijfe.1920
- Rahman, D. F. (2021). Consumer Confidence, Retail Sales Recover from Delta Impact. https://www.thejakartapost.com/news/2021/11/09/consumer-confidence-retail-sales-recover-from-delta-impact.html
- Rakib, M., Azis, M., Najib, M., & Isma, A. (2024). Impact of Digital Literacy, Business Innovation, Competitive Advantage on the Existence of SMEs: A quantitative study in Makassar City, Indonesia. Quality – Access to Success, 25(198), 277–283. https://doi.org/10.47750/QAS/25.198.30
- Rani, G. M., & Desiyanti, R. (2016). PENGARUH LITERASI KEUANGAN, INKLUSI KEUANGAN, DAN DIGITAL PAYMENT TERHADAP KINERJA. 1–23.
- Sahay, R., Eriksson, U., Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., & Beatin, K. (2020). Promise of Fintech Financial Inclusion in the Post COVID-19 Era. International Monetary Fund.
- Santoso, V., & Nainggolan, R. (2023). Technology Acceptance Model (Tam): The Effect Of Financial Literacy On Effectiveness Of Using Qris On Msme Owners In Indonesia. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 7(4), 1770–1779. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
- Seu, K., Kang, M.-S., & Lee, H. (2022). An Intelligent Missing Data Imputation Techniques: A Review. 6(May). www.joiv.org/index.php/joiv
- Simangunsong, Y. S., & Rozaini, N. (2023). Pengaruh Nilai Transaksi Bisnis E-Commerce Dan Jumlah Pengguna Internet Terhadap Pertumbuhan Ekonomi Di Indonesia (Studi Kasus Tahun 2012-2022). Jurnal Ilmiah Multidisipline, 1(4), 49–58.
- Smith, M., & Zentner, A. (2021). Internet Effects on Retail Markets. Coercion, Survival, and War, 1–10. https://doi.org/10.1515/9780804795074-003
- Sugandi, E. A. (2021). ADBI Working Paper Series THE COVID-19 PANDEMIC AND INDONESIA’S FINTECH MARKETS Asian Development Bank Institute.
- Suherdi, D., Syarifah Fadillah Rezky, S. K. M. K., Dicky Apdilah, S. T. M. K., Junus Sinuraya, S. T. M. K., Andi Sahputra, S. E. M. M., Dinur Syahputra, S. T. M. K., & Dewi Wahyuni, S. K. M. K. (2021). Peran Literasi Digital Di Masa Pandemi. CATTLEYA DARMAYA FORTUNA. https://books.google.co.id/books?id=gs5DEAAAQBAJ
- Sung, A., Leong, K., Sironi, P., O’Reilly, T., & McMillan, A. (2019). An exploratory study of the FinTech (Financial Technology) education and retraining in UK. Journal of Work-Applied Management, 11(2), 187–198. https://doi.org/https://doi.org/10.1108/JWAM-06-2019-0020
- Susetyo, D. P., & Firmansyah, D. (2023). Literasi Ekonomi, Literasi Keuangan, Literasi Digital dan Perilaku Keuangan di Era Ekonomi Digital. Economics and Digital Business Review, 4(1), 261–279.
- Syafrial, H. (2019). Literasi Digital. In Sustainability (Switzerland) (Vol. 11, Issue 1). http://scioteca.caf.com/bitstream/handle/123456789/1091/RED2017-Eng-8ene.pdf?sequence=12&isAllowed=y%0Ahttp://dx.doi.org/10.1016/j.regsciurbeco.2008.06.005%0Ahttps://www.researchgate.net/publication/305320484_SISTEM_PEMBETUNGAN_TERPUSAT_STRATEGI_MELESTARI
- Tatli, H., & Koc, B. (2021). the Relationship Between Sales Volume and Consumer Confidence Index in the Turkish Retail Industry. Bingöl Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 22, 773–790. https://doi.org/10.29029/busbed.940072
- Xiao, J. J., & O’Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712–721. https://doi.org/https://doi.org/10.1111/ijcs.12285
- Yushita, A. N. (2017). Pentingnya Literasi Keuangan Bagi Pengelolaan Keuangan Pribadi. Nominal, Barometer Riset Akuntansi Dan Manajemen, 6(1). https://doi.org/10.21831/nominal.v6i1.14330
- Yuslin, H. (2022). Determinan Indeks Keyakinan Konsumen Terhadap Kondisi Perekonomian Indonesia. IEB JOURNAL Islamic Economics and Busines Journal, 4(1), 81–95.