TBK THE ROLE OF BRANCHLESS BANKING AND FINANCIAL INCLUSION ON THE ECONOMIC GROWTH OF COMMUNITIES OF MEDAN

Abstract

Expanding access to financial institutions is one solution to broadening the reach and access of people to financial institutions. Branchless banking as a form of advancement in banking service technology which is part of the banking policy strategy offered by the Financial Services Authority (OJK) to achieve financial inclusion in all levels of society needs to be tested consistently. This study aims to determine the effect of branchless banking and financial inclusion on the success of economic growth in the city of Medan. This research is a quantitative descriptive study. This study took the population of the city of Medan in 21 districts. There were 300 respondents selected as samples based on research needs using stratified random sampling techniques. The data analysis technique used is Multiple Linear Regression. The results show that branchless banking has a significant positive effect on the economic growth, which means that branchless banking is capable of significantly and strongly influencing the economic growth of the people of Medan City. Financial inclusion also has a positive and significant influence on the economic growth, which means that the achievement of financial inclusion in the city of Medan will have a real and strong impact on the success of economic growth in the city of Medan. Financial inclusion is the biggest and strongest factor in the economic growth of the people of Medan City