TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Lifestyle spending, low fintech adoption stump financial literacy

  • Yunindita Prasidya

    Jakarta

Jakarta   /   Thu, August 13 2020   /  01:00 am
Illustration of financial technology (fintech).(Shutterstock/File)

The lifestyle-driven spending habits of millennials, as well as the general public’s slow adoption of technological developments in finance, are among the challenges to increasing financial literacy in Indonesia, fintech players have stated. A financially literate person, according to the Financial Services Authority (OJK), has knowledge of financial institutions and financial products, including the features, benefits and risks, as well as the skills to utilize financial products and services. However, when it comes to investment, millennials allocate a mere 10 percent of their income for savings, according to William, director of marketing, communication and community development of the Indonesian Fintech Association (Aftech). “This is a problem of paradigm. They [millennials] have income, but 90 percent of it is not allocated for savings or investment, [it is spen...