The Effect of Financial Inclusion and Social Influence on Community Interest in Using Financial Technology

The development of world technology, especially in Indonesia, is progressing. Many new and innovative creative ideas have emerged in the field of digital technology. Currently, in the financial sector, various technological innovations have emerged that make it easier to carry out financial transactions and other financial activities carried out by the general public, commonly known as FinTech, or Financial Technology. FinTech is a very potential opportunity during COVID-19. However, there are still many people who do not understand the concept of financial inclusion, for example in the use of financial products. The Yogyakarta Financial Inclusion Index is a composite of 76.12%, conventional 75.85%, and Sharia 8.92%. Increasing financial inclusion through fintech cannot be separated from the social influence that accompanies every trend in society in the use of financial services. The type of research used is quantitative. The purpose of this study was to determine whether there is an influence of financial inclusion and social influence on people's interest in using FinTech in the special region of Yogyakarta. primary data source using a primary data questionnaire with 114 respondents and e-wallet users. The results of this study indicate the influence of financial inclusion and social influence on interest in using FinTech. Because of how easy it is for people to get to and use FinTech, like e-wallets, to make transactions easier .


INTRODUCTION
The development of world technology, especially in Indonesia, has progressed. Many new and innovative creative ideas have emerged in the field of digital technology. One example is in public service in transactions that were previously done manually by going to the bank, but now payments can be made online. In the financial sector, various technological innovations have emerged that make it easier to carry out financial transactions and other financial activities carried out by the general public, commonly known as Fintech, or financial technology.
Fintech has been embedded in the daily lives of millennials, but many people still do not understand that the use of fintech is very important for transactions. Online payments have also been applied to e-commerce such as Tokopedia, Grab, Gojek, etc. However, online payments have penetrated into transaction payments and usually use online transaction platforms such as Gopay, Linkaja, Dana, OVO, etc. Developments in Fintech can affect sectors ranging from startup payments, lending, financial planning, investment, etc. Fintech actors in Indonesia are still based on 43% of payments, 17% of loans, and the rest are aggregators, crowdfunding, etc. According to OJK, more than 150 companies are tech start-ups using the peer-to-peer lending business model.

Projected Growth of Fintech transactions in Indonesia
Source : databoks.katadata.co.id (2017) The trend of using Fintech continues to have the potential to increase and affect a person's ability to manage finances. With the improvement of information systems and payment mechanisms, it can significantly influence the perception of consumer decisions and consumption patterns (See-To & Ngai, 2019). So that Fintech begins to affect the level of sales transactions, payments, and investments. Thus, Fintech becomes a very potential opportunity during COVID-19 in Indonesia, looking at the instruments, providers, mechanisms, and infrastructure for the implementation of payment transaction processing.
Based on data provided by Bank Indonesia (BI), there are 38 e-wallets that have received official licenses. Along with the proliferation of electronic money, e-wallet transactions in Indonesia reached USD 1.5 billion, equivalent to Rp. 21 trillion (1 USD = 14,222). It is likely that it will continue to increase to IDR 355 trillion in 2023. Based on the data for the second quarter of 2019, the top 5 e-wallet applications with the most active monthly users are According to the Financial Services Authority (2017), the increase in the use of Fintech is a driver for increasing national financial inclusion. According to APJII (2016), Indonesian people use the internet at a ratio of 51.8% to 132.7 million, down from 256.2 million. so that digital and internet-based financial services are very easy to reach and accessible to the public. Electronic payments have changed people's lifestyles today because the payment system that was originally made in cash is now made noncash so that the use of Fintech in Indonesia is growing more rapidly.
Financial inclusion has a long-term impact on the stability of Indonesia's financial system. Financial inclusion instruments can encourage the intervention of new technological developments, which are expected to have a positive impact on improving the economic stability of the Indonesian financial system. There is an increase in the performance of financial inclusion through the socialization of Fintech as a form of financial integration to achieve speed, effectiveness, and efficiency in access to the community. So that financial inclusion with the Fintech technology revolution can support sustainable economic growth, reduce poverty, and income inequality (Rusdianasari, 2018). An inclusive financial system must provide opportunities for everyone, especially the poor, to access and transfer funds and grow capital. Greater digital finance can result in greater financial inclusion if high, middle, and low-income users of digital financial services are able to persuade family and friends, as well as the poor (and those in the informal sector), to open bank accounts and use digital finance for convenience in financial services (Ozili, 2018).
According to (Ummah et al., 2012), the index in the average financial inclusion of provinces in Indonesia ranges from 0.1-0.33, except for the province of Jakarta, which is still high, reaching 0.8. so that the Special Region of Yogyakarta is included in the list of low inclusion levels. Low inclusion is due to the fact that the poor have not yet adapted to the formal financial sector or have low public participation in financial services. This can be seen from the indicators, namely accessibility, availability, and use.
Financial inclusion cannot be separated from the social influences that accompany every trend in society in using financial services. Social influence is how far the social environment, such as going out, friends, or the environment can significantly influence someone to do something (Madan & Yadav, 2016). The indicators used for measurement are age, education level, place of residence, and social environment. People are interested and encouraged to use Fintech because of the influence of the social environment and word of mouth, directly or indirectly, through social media, which is growing rapidly at this time.
Mobile payments and e-commerce play an important role in Fintech. There will be a lot of potential followers who are curious about new and emerging technologies today. The impact of adopting new technologies shows that users are not only interested in the benefits provided by Fintech but are also influenced by the social influence circle or social influence around those who use it (Huang et al., 2007).
Based on the phenomenon and based on the descriptions above, there is an interest in researching financial inclusion and social influence on public interest in the province of the Special Region of Yogyakarta in Payments Using Financial Technology. by strengthening and utilizing Fintech to help with matters related to finance. Based on the explanation above, the author will conduct a study entitled "The Effect of Financial Inclusion and Social Influence on Community Interest in Using Financial Technology."

LITERATURE REVIEW 1. Financial Technology (Fintech)
Fintech comes from the terms financial technology and financial technology. According to the National Digital Research Center (NDRC), in Dublin, Ireland, fintech is defined as "innovation in financial services" or "innovation in fintech financial services", which is an innovation in the financial sector that gets a touch of modern technology. Digitally, becoming one of the most developed payment sectors in the Fintech industry in Indonesia. This is the sector that the government and society expect the most to encourage an increase in the number of people who have access to financial services Financial innovation and fintech are intimately related and entwined. A foundational study of digital innovation can be done by looking at the literature on financial innovation. Based on Liudmila et al. (2016), this section gives an overview of three categories of financial innovations: new goods and services; new methods of production; and new organizational structures. Innovation in finance is the process of making and promoting new financial tools, technologies, institutions, and financial markets.
Financial technology (Fintech) is a revolution in online financial services (Vhalery, 2021). Fintech is described as a modern market that combines finance and technology to provide financial services. According to (Yarli, 2018), fintech is a dynamic segment at the intersection between the financial services sector and startup technology that focuses on technology that is an entrant to new markets that has innovated into products and services provided by traditional finance. Fintech can help with finances such as funding, non-cash transactions, payments, and others. Fintech is a new financial service that Social Humanities, Religious Studies and Law_Volume 2 Issue 1 (2022) "Strengthening Youth Potential for Sustainable Innovation" 3 is based on technology and can be used online to help with things like bill payments, insurance premiums, remittances, balance checks, funding, investments, etc. (Fahlefi, 2018).
Based on Rusydiana (2019) explaining the Financial Services Authority (OJK), Fintech companies in Indonesia are divided into several sectors, namely: 1) financial planning, 2) crowdfunding, 3) lending, 4) aggregator, 5) payment, and 6) other Fintech. Hadad (2017) explains that fintech companies in Indonesia are dominated by the payment sector at 42.22%, the financing sector (Sharia lending) at 17.78%, the aggregator sector at 12.59%, the financial planning sector (financial planning) by 8.15%, the crowdfunding sector by 8.11%, and other Fintech sectors at 11.11%. In Indonesia, financial technology has been regulated by Bank Indonesia in Bank Indonesia Regulation (PBI) No.18/40/PBI/2016 concerning the Implementation of Payment Transaction Processing. In Indonesia, fintech services include personal finance and investments, payments, point-of-sale (POS) systems, Sharia lending, accounting, comparison, crowdfunding, and digital currencies.
FinTech is closely linked and intertwined with financial innovation. There is a literature on financial innovation that can be studied fundamentally about digital innovation. According to Liudmila, Mateusz, and Gerhard (2016) , financial innovation is divided into three categories: new products and services, new production processes, and new organizational forms. Innovation in finance is considered as "the act of creating and popularizing new financial instruments, technologies, institutions, and new financial markets" by Lerner and Tufano (2011). According to Cuesta et al. (2015), FinTech develops in line with global digitalization and, therefore, the definition of digital provides Fintech innovation as a product, process, or business model that is considered new, requires some significant changes, and is developed so that it can facilitate digital financial activities.
According to a report by Accenture (2016, in Lee and Shin, 2018), since 2010, nearly 2,500 companies have invested more than $50 billion, so that Fintech has become a place to promote ways in which people can borrow, invest, store, move, spend, and protect money. Based on the International Agency for Monitoring and Providing Policy Recommendations on the Global Financial System, the Financial Stability Board (FSB) divides the types of Fintech into categories based on the type of innovation, including: Changes in payments in the industry in the startup business sector are due to the existence of Fintech, which provides financial service features such as crowdfunding, where individuals can easily obtain funds from around the world. Individuals can transfer money globally so that users of payment services using Paypal can automatically change currency exchange rates so that individuals residing in various countries can easily buy exported goods from Indonesia. The role of Fintech according to (Muchlis, 2018) is as follows: • Fintech can provide structural solutions for electronicbased growth, such as e-commerce. • Can encourage growth in small and medium-sized entrepreneurs so that they can give birth to new entrepreneurs or entrepreneurs. • Can encourage creative businesses such as artists, musicians, application developers, editors, etc. to get a wide (global) market distribution. • Can provide market development, especially for those who have not yet received financial services.
According to the Financial Services Authority (OJK) (2016), the advantages of Fintech are: • Serving the Indonesian people who cannot be served by the traditional financial industry due to the limitations of the traditional banking industry in serving certain areas. • As an alternative to funding other than in the traditional financial industry services sector, the community still needs alternative financing that is democratic and transparent.
The disadvantages of Fintech are: • Fintech is a party that does not have a license to be able to transfer funds and is less established to run a business with large capital when compared to banks. • Some Fintech companies do not yet have physical offices and lack experience in carrying out procedures Social Humanities, Religious Studies and Law_Volume 2 Issue 1 (2022) "Strengthening Youth Potential for Sustainable Innovation" 4 related to security and integrity systems in their products.

Financial Inclusion
According to Demirguc-Kunt et al. (2015 in Kurniasari andAdyni, 2021), Financial Inclusion is the access and use of formal financial services available to the public so that they can use these services. Sarma (2012) says that "financial inclusion" is a process that makes it easy for all economic actors to access, use, and benefit from the formal system.
According to Bank Indonesia (2014), financial inclusion is defined as an effort to eliminate all forms of price and non-price barriers to public access to the use of financial services. According to the World Bank (WB), Financial Inclusion is access for all people and businesses so that they can use and benefit from financial products or services that have played a role in meeting human needs in everyday life, such as saving, investing, payments, credit, and others that are managed effectively and sustainably.
According to the OECD (2018, in Yuliyanti & Pramesti, 2021) in its survey conducted in 2016, the Organization for Economic Cooperation and Development (OECD) developed questions in its questionnaire that can be used to measure financial inclusion. This questionnaire has been used in various countries under various conditions and circumstances. So four things become the focal point of financial inclusion, namely: • Product Holding to find out which payment products can be used in all countries. For example: payment cards, checking accounts/giro, credit products, pension products etc. • Product Awareness is the awareness of consumers about financial products and how they use them according to their needs. It is this awareness that prevents mistakes in choosing and helps providers to find out public demand. • Product Choice can provide benefits for users if their financial products are properly monitored for financial inclusion. It is necessary to move a financial product or service if it looks like it will be detrimental if it is not managed properly. • Can increase public access to institutions, products, and financial service business actors.
• Can increase the provision of financial products and services by business actors in accordance with the needs of the community. • There is an increase in financial products and services according to the needs and abilities of consumers and the community. • Can improve the quality of financial products and services in accordance with the needs and capabilities of consumers and the community.
According to the regulation of the President of the Republic of Indonesia No. 82 of 2016 concerning the National Strategy for Financial Inclusiveness (SNKI), there is an inclusive financial policy that includes the pillars and foundations of the SNKI supported by institutions or organizations and related agencies. The following are the pillars and foundations of SNKI, are: • Financial Education Pillar. Financial education can increase public knowledge and awareness about financial institutions, financial products and services such as features, benefits, risks, costs and obligations. • Community Property Rights Pillar. Community property rights provide access to public credit to formal financial institutions. • Pillars of intermediation facilities and financial distribution channels. Can expand the reach of financial services to meet the needs of the community. • Financial services pillar in the government sector. Can improve governance and transparency of finance and public services in the distribution of government funds, both cash and non-cash. • Consumer protection pillar. Consumer protection with the aim of providing a sense of security to the public in interacting with financial institutions, so that they have the principles of transparency, fair treatment, reliability, and confidentiality, as well as data and information security, law enforcement, and community dispute resolution.

• Effective
Organization and Implementation Mechanisms. Financial inclusion actors need organizations and mechanisms that can encourage financial implementation.

Social Influence
According to Hu, Chen, and Davidson (2019), social influence means that individuals change their thoughts, feelings, attitudes, or behavior as a result of interactions with other individuals. Deutsch and Gerard's Social Influence Theory examines social influence along two dimensions: informational and normative. Informational social influence means accepting information obtained from others as evidence of truth, which is normative.
Social influence shows the extent to which an individual's perception of something that other people believe in using the new system (Adiwibowo et al., 2012). According to Wang and Chou (2014), Social influence refers to how other people can influence one's behavioral decisions. Social influence relates to external pressure from important people in one's life. Social influence is the extent Social Humanities, Religious Studies and Law_Volume 2 Issue 1 (2022) "Strengthening Youth Potential for Sustainable Innovation" 5 to which social networks can influence people's behavior through messages and signals from others that facilitate the formation of society's perceived value of a technological system. Social and environmental influences influence individuals through messages about social expectations and observed behaviors of others. According to Beli et al. (2018), social influence refers to the actions, feelings, thoughts, attitudes, or behavior of individuals that change through interactions with other individuals or groups. This can be seen through socialization, peer pressure, and family. In social psychology, it is often associated with the impact of social norms on changes in individual behavior and attitudes. Buying decisions that are based on social norms come from the need to be respected and get the social status that is expected.
According to Madan and Yadav (2016), "social influence" is defined as the influence of others in terms of adopting a new system and individual perceptions of the group's subjective culture. Social influence affects a person's behavior through compliance, internalization, and identification, which are categorized as a response to social pressure, potential gains in social status, and changes in a person's belief structure (K. Lee, 2014). Wang andChou (2014, in Haryono et al., 2015) argue that social influence can be formed from two dimensions, namely subjective norms and visibility. The explanation as follows: • The behavior of others, where one person can influence and do things that can encourage others to do the same, and Environmental influences, which a person observes in the surrounding environment a lot of doing or using a thing, so that someone can be encouraged to take the same action

Interest
According to Slameto (2010), interest is a sense of liking and interest in something or an activity without anyone else's knowledge. Interest is the motivation that causes a person to relate to a particular object, such as a job, lesson, object, or person. Interest is associated with something that is profitable and potentially satisfying to him. Pleasure is a short-term interest, while interests are long-term and provide satisfaction by meeting both needs and wants.
According to Slameto (2015), factors affecting the awakening of interest are: • job differences, namely that a person can estimate interest in the level of work he wants to achieve, activities carried out, use of his free time, and other factors based on job differences. • socio-economic differences, namely that someone with a high socio-economic status will be able to achieve goals more easily than those with a low socio-economic status. • The distinction between hobbies refers to a person's personality and leisure time.

•
Gender differences mean women and men have different interests, such as shopping habits. • Age differences that each age group has different interests in certain items or activities.
To measure interest in individuals, there are several indicators, including Pavlou (2010): • a desire to use • Always make use of • Keep using it in the future.

Hypothesis 1. Financial Inclusion Affects Public Interest in Using Financial Technology
Financial technology is a tool that can help the public to make it easier to access financial services digitally. Fintech provides people with technology-based financial service accounts for transactions. So, the more use of Fintech, the greater the increase in the level of public financial inclusion. There is financial inclusion with Fintech lending that contributes to and makes it easy to access financial products in the community. In accordance with the results of previous research, namely Purnama (2020) with the title "The Effect of Financial Inclusion, Lifestyle, and Social Influence on the Use of Financial Technology" in line with research by Ozili (2018) with the title "Impact of Digital Finance on Financial Inclusion and Stability Peterson".

Social Influences on Public Interest in Using Financial Technology
Social Influence is someone who thinks that the people around him as family and friends invite someone to use and try new things (Handayani and Rianto, 2021). The more social influence there is, the more people want to use financial products made with Financial Technology. In line with Aseng's research (2020) entitled "Factors Influencing Generation Z Intention in Using Fintech Digital Payment Services." With Fintech providing better services and effective promotions, it provides a pleasant experience for users so that they can Social Humanities, Religious Studies and Law_Volume 2 Issue 1 (2022) "Strengthening Youth Potential for Sustainable Innovation" 6 provide recommendations to others to use similar services. Because social influence will affect payment behavior intentions as well as the security of personal data so that individuals are easily influenced by the people around them.

Financial Inclusion and social influence affect the public's interest in using financial technology.
The development of Fintech in Indonesia is supported by increasingly advanced technology in digital financial products so that people can transact online easily. The use of Fintech itself cannot be separated from social influences where the experience of individuals who use Fintech can be a reflection and reference to participate in using it by other individuals and groups.
In accordance with the results of previous research, namely Fauziah & Ashfiasari, (2021) with the title "The Effect of Social Influence and Self-efficacy on Intention to Use Mobile Payment Systems on E-wallet Users" and in line with research from Lasmini & Zulvia, (2021) with the title "Financial Inclusion and Its Effect on the Use of Financial Technology in the Millennial Generation", states that financial inclusion has a positive and significant relationship to financial technology. The greater the ability to determine the financial products and services used, the higher the financial technology used, because the more benefits that can be obtained and felt in the use of Fintech gives the assumption that Fintech is able to guarantee security and convenience for consumers to be able to access financial services.

Research Hypothesis
Based on The Explanation above, the hypotheses in this study are : H1 : There is an effect of Financial Inclusion on the Public Interest in Using Financial Technology. H2: There is Social Influence on Public Interest in Using Financial Technology. H3 : There is an effect of Financial Inclusion and Social Influence on the Public Interest in Using Financial Technology

METHOD
In this study, researchers used quantitative methods with a causal associative approach. The associative approach aims to analyze the relationship problems of another variable, so the approach used in this research is quantitative, with the analysis used being regression analysis.
In this study, a theory can be made that explains, predicts, and takes care of a symptom. Thus, it can be used to identify the extent of the influence of variable X (independent variable) consisting of Financial Inclusion (X1), Social Influence (X2) on variable Y (dependent variable), namely public interest in using financial technology. formula used: Y = a + b1X1 +b2X2 + .... The sampling technique used in this study, using nonprobability, Sampling is a technique used for sampling that does not provide equal opportunities for each element or member of the selected population.
The type of nonprobability sampling used is accidental sampling. (Accidental sampling is a sampling technique by chance, which means that anyone can be sampled with sampling criteria by using one of the Fintech Payment, Clearing, and Settlement categories such as digital wallets such as the Dana E-Wallet, Ovo, Gopay, LinkAja, Shopeepay, etc.
The tool used by researchers for data collection in this study is Google Forms. Google forms are useful to make it easier to collect or collect data that contains certain information from someone. Data collection techniques in this study used a questionnaire. A questionnaire is a method of collecting data by asking written questions that are systematically distributed to respondents.
A questionnaire is a data collection technique that is done by giving a set of written questions to respondents to answer. The total questionnaire consists of 25 items.

Characteristics of Respondents
Respondents in this study are people who use one of the financial products, such as E-Wallet or digital wallet, who are domiciled in the Special Region of Yogyakarta with a minimum age of 17 years and have been or are using it for the last 1 year. This research has obtained as many as 114 respondents who have met the criteria.

Multiple Linear Analysis Results
Based on the results in the coefficients table, ANOVA and Model Summary in the data processing results in Appendix 4, the coefficient value for the regression direction seen from the constant (constant) value is 1.035. As for the value of the regression direction coefficient for X1 of 1.586 and the value of the regression direction coefficient for X2 of 0.521 so that, based on the output, the regression equation can be written as follows:

Simultaneous Test (F Test) ANOVA a
In this study, it is known that the number of samples (n) is 113 respondents and the number of k parameters is 3, so we get df1 = k-1=3-1=2 df2=n-k =114-3=111, and at =0.05 we get Ftable = 3.08. Then it can be seen that Fcount is 172,909 with a significance level of 0.000. While the Ftable at the 95% confidence level (α=0.05) is 3.08. Therefore, Fcount >Ftable and a significance level of 0.000<0.005, it can be concluded that the independent variables (Financial Inclusion and Social Influence) simultaneously have a significant effect on public interest in using financial technology in the special region of Yogyakarta. It can be concluded that the independent variables (Financial Inclusion and Social Influence) act simultaneously (together) on the dependent variable "Public Interest in Using Financial Technology in the Special Region of Yogyakarta" so that Ha3 is proven.

Coefficient of Determination (R2) Model Summary b
Based on the adjusted R Square value of 0.757, it means 75.7%. Financial Inclusion and social influence contribute to the public's interest in using financial technology. As a result, the remaining 24.3 percent is explained by variables not addressed in this study.

CONCLUSION AND RECOMMENDATION
From the results of this study, it can be concluded that there is a simultaneous influence of financial inclusion and social influence on people's interest in the Special Region of Yogyakarta in using financial technology.The use of digital-based finance with the most users is among students / students by 56.1% so that the use of Fintech in facilitating payment transactions in all activities. The use of Fintech with digital wallet products is Gopay from Gojek at 29.8%, and the most frequent community activity is transactions at 45.6%. Thus, the availability of financial services and the social environment can increase the use of Fintech. The contribution of fintech has made it easier for the public to access financial products. This indicates that the more equitable access to fintech financial products, the wiser in using financial products such as Gopay, Ovo, Shopeepay, LinkAja, etc. The high level of financial inclusion cannot be separated from social influences and the influence of the recommendation environment on the community to use financial technology.
The results of this study are in line with Keng-Soon et al. (2019) that people are interested in accepting new technology because of the ease of transacting with Fintech. Also, consumers are using technology more often, which gives them more skills and knowledge when they use technology platforms for financial transactions. The results of this study are in line with research conducted by Aseng (2020) that finds financial and social inclusion influence, strengthen service security, increase convenience, flexibility, and ease of use of services provided, and conduct promotions through popular social media platforms to entice consumers to use payment services. digital with better and more effective service. Users can recommend that others use similar services.

Recommendation
It is expected to be able to add respondents and add financial products because, based on the results of the determination test or R square obtained on the two independent variables of this study, 75.3% affect public interest in using Fintech in the Special Region of Yogyakarta, so that 24.7% of the independent variables are still influenceable by other variables. Thus, we can add variables in further research such as financial literacy, financial behavior, and financial satisfaction. It is expected to be able to conduct research with respondents adding to the sample of MSMEs in the Special Region of Yogyakarta, so that the results of the research can be assessed by all circles of users. .