Boosting financial inclusion through social assistance reform: evidence-based approach in selecting a payment system

Q4 Social Sciences

Enterprise Development and Microfinance Pub Date : 2020-12-01 DOI:10.3362/1755-1986.20-00013

Hilman Palaon, S. Wiryono, Taufik Faturohman

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Abstract

Digitizing social assistance for the poor has been proven to increase financial inclusion. The Indonesian Government initiated reform for non-cash social assistance disbursement in 2016. Evidence-based policy approach is an effective technique for informing the government on appropriate new regulations. A pilot project involving 4,295 participants was conducted to evaluate the following payment systems: debit card, mobile money, QR code (quick response), and NFC (near field communication). Beneficiaries utilized the funds for cash withdrawals and food purchases at bank agents. Quantitative and qualitative methods were employed in the analysis. The government decided to use debit card with multiple wallet features. A new regulation was made to support the implementation in 2017, and by the end of 2019, the government provided more than 12 million new savings accounts to the poor. Potential future improvements are proposed for the sustainability of the solution, which include a disbursement providers’ revenue model, broader financial services involvement, bank agents’ inventory system, and optimizing the latest innovations.

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通过社会援助改革促进金融包容性：选择支付系统的循证方法

事实证明，对穷人的社会援助数字化可以提高金融包容性。印度尼西亚政府于2016年启动了非现金社会援助支付改革。基于证据的政策方法是向政府通报适当新法规的有效技术。进行了一个涉及4295名参与者的试点项目，以评估以下支付系统：借记卡、移动货币、二维码（快速响应）和NFC（近场通信）。受益人利用这笔资金在银行代理处提取现金和购买食品。分析采用定量和定性方法。政府决定使用具有多种钱包功能的借记卡。2017年制定了一项新的法规来支持实施，截至2019年底，政府为穷人提供了1200多万个新的储蓄账户。为解决方案的可持续性提出了未来的潜在改进，包括支付提供商的收入模式、更广泛的金融服务参与、银行代理的库存系统以及优化最新创新。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Enterprise Development and Microfinance Social Sciences-Development

CiteScore

0.60

自引率

0.00%

发文量

期刊介绍： EDM encourages critical thinking on how market systems can be more inclusive and sustainable, with concrete implications for designing, implementing, and evaluating business support programmes. EDM is essential reading for practitioners, researchers, donors, policymakers, and finance specialists engaged in market-related activities involving poor people in the global South. The coverage includes but is not restricted to: • Financial inclusion (inclusive financial services and products) • Emerging financing models (impact investment, responsible finance, social lending) • Value chain analysis and development • Inclusive business models • Equity (gender, youth, marginalized) in access to financial services and value chains • Political and regulatory framework for SME development and financial services • ICT for business development and financial services • Sustainability standards • Advisory services for SMEs • Impact assessment.