THE ADVANTAGES AND ANALYSIS OF THE LOCATION OF BRANCHLESS BANKING IN URBAN AND RURAL AREAS IN YOGYAKARTA SPECIAL REGION, INDONESIA

Branchless banking is a banking service based on ICT, one of which is an agent. This service can be found in both urban and rural areas. This research aims at identifying the existence and advantages of agents-based branchless banking. The locations of branchless banking agents was also analyzed to explore the spatial pattern. This research applies a quantitative method. Agents and customers are selected by undergoing a survey. The data are obtained by structurally interviewing agents on the kinds of services they provide and the benefits of services for customers. Meanwhile, an accidental sampling technique is used to select customers. Besides, spatial analysis is applied using kernel density analysis and accessibility analysis. The result of the research shows that the advantages of branchless banking through agent alter the perception of spatial benefits to access banking services. The space for banking services is in the same place for other purposes such as business units and home. In urban areas, the making use of agents is mainly based on the factors of being closely located and easy to access. Meanwhile, in suburban and rural areas, conveniences are of primary consideration to make use of agents. Concerning the geographical field, location plays an essential role in the substantial changes related to the spatial functions of economic services, mainly banking services, which are not always located in downtown areas. On the contrary, it is possible to locate economic services in rural areas, with the help of ICT-based services. The result of the analysis shows that banks do not optimally consider location, range and service area for branchless banking represented by agents.