Modeling of Community Financial Inclusion in Banda Aceh

The principle of inclusive finance has become essential to achieving community welfare in a country. The value of Aceh's financial inclusion index is high, namely 86.09%. But there are still people who have yet to be able to access financial services, especially banking institutions, because of several obstacles, including the socioeconomic and macroeconomic characteristics of banks, institutions, and regulations. This study aims to analyze the effect of financial literacy and financial technology on public financial inclusion in the city of Banda Aceh. This research is quantitative research using primary data. Collected data by distributing questionnaires to 100 respondents using a purposive sampling technique with the criteria of respondents aged 17-60 years domiciled in the city of Banda Aceh and having an account at a bank. The research data were analyzed using descriptive and Partial Least Square (PLS) analysis. The results of this study indicate that financial literacy and financial technology have a positive and significant impact on public financial inclusion in Banda Aceh City. The financial literacy path coefficient value is 0.173, and financial technology is 0.532. It shows that the people of Banda Aceh City have good financial literacy, which can help them manage their finances.