Digital inequality and digital skills: Examining barriers and solutions in Indonesia's mobile banking adoption: Addressing digital disparities to creating opportunities through the development of digital skills, supporting broader adoption and usage of mobile banking services across Indonesia

This dissertation explores why many Indonesians, particularly in rural and lower-income communities, struggle to adopt mobile banking despite having access to digital technology. While mobile banking has the potential to increase financial inclusion, many people face barriers such as low digital literacy, lack of trust in digital financial services, inadequate infrastructure, and concerns about security and fraud. These challenges contribute to digital inequality, where only certain groups benefit from technological advancements while others remain excluded.
Through extensive survey analysis, this research identifies three main problems in mobile banking adoption in Indonesia. First, many users lack the digital skills needed to use mobile banking effectively, leading to frustration and reluctance. Second, distrust in mobile banking services and concerns about fraud discourage potential users from transitioning to digital financial platforms. Third, unequal access to stable internet connections and affordable smartphones further widens the gap, particularly in remote areas.
To address these issues, this study proposes several practical solutions. First, financial institutions and policymakers should invest in digital literacy programs to help users navigate mobile banking safely and confidently. Second, banks must enhance security features and improve fraud protection measures, while also increasing transparency to build user trust. Third, expanding internet infrastructure and ensuring affordability of mobile devices will help reduce barriers to access, making mobile banking a viable option for a broader population.
This dissertation contributes to the field of digital inclusion and financial technology by offering realistic and actionable recommendations to bridge the digital divide. By addressing digital inequality in mobile banking adoption, the findings of this research aim to support the development of a more inclusive financial ecosystem in Indonesia.