Financial Technology in Financial Inclusions and its Implica-tions on Poverty from Indonesia

: The goal is to reduce poverty, the method used is a literature study to see the effect of using Financial Technology (Fintech) on financial inclusion, method to see the effect of financial inclusion on poverty. From the results of the tests, the use of Fintech can increase financial inclusion, thereby encouraging poverty alleviation. It can be seen that the Financial Inclusion variable has a significant and negative effect on the poverty variable. This shows that countries that have high levels of financial inclusion are generally estimated to have low poverty rates. Increasing a country's financial inclusion can reduce poverty.


Introduction
In realizing the welfare of the people throughout the world, the United Nations (UN) formulates the Sustainable Development Goals (SDGs) that are expected to be achieved in 2030 that emphasize aspects of justice and equality. Of the 17 SDGs agreed upon; the objective of the first point is poverty alleviation. According to the United Nations (2015;) and Better Than Cash Alliance (2016)., a country's economic growth must be inclusive and reach out to all communities to create sustainable and equitable employment. From this statement, it can be concluded that financial inclusion or financial inclusion is predicted to reduce a country's poverty level.
In the current era of Industry-based economy 4.0 and 5.0, financial services or financial technology-based financial services are emerging that provide convenience and comfort for users so that financial services are easier to use. With the facilities provided by Fintech, access to financial services can be accessed by more and more people in remote areas because it requires lower costs compared to conventional financial institutions (Dabla-Norris., Townsend, and Unsal;2020;Ozili, 2018;Zetzsche., Buckley., Arner and Barberis;. So that the use of Fintech is expected to increase financial inclusion and encourage poverty alleviation. In this study, researchers will analyze the effect of using Fintech on financial inclusion and its impact on poverty. The method used is a literature study to see the effect of using Fintech on financial inclusion, and regression with the Ordinary Least Squares (OLS) method to see the effect of financial inclusion on poverty. The financial inclusion variable used is the number of accounts in financial institutions in a country taken from The Global Findex Database, while the poverty variable is the proportion of the total population of a country taken from The World Bank.
the quality of life for the poor is less visible (Huang and Zhang: 2019;Kim., Yu & Hassan: 2018;Pew Research Center;. Increasing the number of accounts in financial institutions can signify an increase in financial inclusion, but if the account is not used by the community, it will not have an impact on poverty (Koh., Lee, and Bomhoff: 2020;Gobble.,2018;Evans;Kubrin, & Hipp;.

Poverty
According to UNESCO (2001), poverty, also called poverty income is a situation where family income does not reach a set limit that is different in each country. Poverty can be classified into two types, namely absolute poverty and relative poverty. Absolute poverty includes poverty in terms of the amount of money needed to meet basic needs such as clothing, food, and shelter. Relative poverty includes poverty in terms of economic status where the community is declared poor if it cannot meet the standard of living in the country of residence.
According to The World Bank, the population with conditions of extreme poverty throughout the world in 2018 declined. However, the decline tends to slow down, causing concern related to the target of achieving poverty eradication in 2030. In order to deal with the slowdown, more investment is needed especially in building HR inclusive et all;Aba., 2017;Aba., et all;Pare., & Felson;.
Based on the United Nations (2015), the Sustainable Development Goals (SDGs) expected to be achieved in 2030 are related to poverty alleviation as follows: 1. Eradicate extreme poverty throughout the world.
2. Reducing at least half of the proportion of the poor.
3. Implement a suitable social protection system nationally.
4. Increase the resilience of the poor and those who are in a vulnerable condition and reduce the impact of the economic, social and environmental crisis on them.
5. Ensure significant mobilization of resources from scattered sources.
6. Creating a policy framework that can be accepted at the national, regional and international levels that is pro-poor to increase investment in poverty alleviation activities.

Research Methods
In looking at the influence of the use of financial technology in financial inclusion and its influence on poverty levels, researchers used a literature study analysis and quantitative analysis by regression.

Literature Analysis
A literature study is a method of analysis conducted by looking for theoretical references and facts that are relevant to cases or problems found. In this study, a literature study was conducted to analyze the effects of financial technology on financial inclusion.

Quantitative Analysis
Quantitative analysis is a method of analysis that is carried out using calculations based on the data used to reach a conclusion. In this study, a quantitative analysis was carried out by regression to see the effect of the level of financial inclusion on the level of poverty.

Ordinary Least Squares (OLS)
In this study, a quantitative analysis was conducted by regression with the Ordinary

Normality Test
To ensure the OLS assumption is fulfilled, a normality test is performed using the Jarque-bear Test to see the normality of error distribution in equation (1) The results of heteroscedasticity test can be seen in attachment (2). Because p-value> α, H0 is not rejected. At the 5% significance level, there is not enough evidence to prove the existence of heteroscedasticity in equation (1), the error in the equation is constant.

Effects of Financial Technology on Financial Inclusion
Based on previous research by Peterson K. Ozili (2018), digital financial services through Fintech have a positive impact on financial inclusion in developing and developed countries, besides the comfort and convenience provided by Fintech to low-income and non-fixed income communities is more attractive than the costs greater value for the same service they get from conventional banking.
According to Accion (2016), it is known that Fintech has a positive influence on financial inclusion by helping small and medium enterprises and individuals who have not been reached by banks, and encouraging a decrease in the cost of inclusion programs to become more efficient and reach more consumers in remote areas. According to Irwan Trinugroho, UNS Management Lecturer, the presence of Fintech is considered to be able to increase financial inclusion in Indonesia. Communities previously unreachable by conventional financial institutions can be reached by financial service's thanks to Fintech.
However, the presence of Fintech also poses a risk for the poor who cannot pay off the swelling debts of Fintech lenders or P2P lending. In addition, there is also the practice of "digging a hole to close a hole," that is, borrowers borrow money to pay other debts.
For this reason, it is recommended that Financial Services Authority (OJK) and educational institutions provide education to the public related to lending money through Fintech. For example, socializing the criteria for safe P2P lending, rules that must be known to the public before they owe, and teaching the community to adjust their ability to pay with the amount of money they want to borrow. According to Adrian A. Gunadi, Chair of the Indonesian Funding Fintech Association, one of the safest ways to obtain loans from P2P lending is to borrow from a Fintech company registered with the Financial Services Authority (Kling., 2020;Law., Kutan & Naseem: 2018;Zhang: 2018;Kubrin., et all & Ousey: 2011).
From these statements, it can be concluded that the use of Fintech has a positive influence on the level of financial inclusion of a country because Fintech provides convenience and comfort to the public in an inclusive manner at a lower cost than conventional Preprints (www.preprints.org) | NOT PEER-REVIEWED | Posted: 3 November 2021 financial institutions so that it can reach people in remote areas. However, in addition to these advantages, Fintech also creates a risk for people who cannot pay debts that continue to swell. For this reason, the government must educate the public about Fintech so that Fintech services can have a positive impact on financial inclusion and reduce existing risks.

Effects of Financial Inclusion on Poverty Levels
Based on the normality test and heteroscedasticity test that has been done, it is known that OLS assumptions have been fulfilled and can be regression in equation (1.) To see the effect of financial inclusion on poverty levels.

Results of Regression
The results of the regression carried out in equation (3.1) are shown in the following regression results table: Based on the conclusions obtained from the research that has been done, researchers can provide some suggestions, namely as follows: (i). For the government, it is expected to be able to further support the development and licensing of Fintech companies in order to increase financial inclusion, which will reduce the country's poverty level by considering the security of each Fintech service and socializing its use to the public; (ii). For the general public, it is expected to be able to use Fintech services in daily transactions while considering the risks of these services.

Conclusion
Based on the analysis of the literature study, the use of Fintech was concluded to have a positive impact on the financial inclusion of a country because Fintech provides convenience and comfort to the public in an inclusive manner at a lower cost than conventional financial institutions so that it can reach people in remote areas.
However, in addition to these advantages, Fintech also creates a risk for people who cannot pay debts that continue to swell. For this reason, the government must educate the public about