Page 61 - DUT ICGA Abstract Book

FINANCIAL INCLUSION OF MALAYSIAN RURAL COMMUNITY
Yusarina Mat Isa1 Zuraidah Mohd Sanusi2 Nor Hafizah Abdul Rahman3 Indarawati Tarmuji4 Razana Juhaida Johari5
1 Faculty of Accountancy Universiti Teknologi MARA Malaysia
Email: yusarina@uitm edu my
2 Accounting Research Institute Universiti Teknologi MARA Malaysia
Email: zuraidahms@uitm edu my
3 Faculty of Accountancy Universiti Teknologi MARA Malaysia
Email: @uitm edu my
4 Faculty of Accountancy Universiti Teknologi MARA Malaysia
Email: @uitm edu my
5 Faculty of Accountancy Universiti Teknologi MARA Malaysia
Email: @uitm edu my
Abstract
An all-inclusive financial system would ensure all all segments of society have access to suitable and affordable formal financial services Nevertheless those who are economically disadvantaged such as the the rural community community are often forcefully excluded from the financial system The rural community’s inclusion into the the formal financial system is very crucial due to to few reasons – such as as to to avoid them from illegally sourcing from non-bank money lenders who often found to to be exploitative and to to economically push their resource potential to to the the the highest level This study examines the the the intrinsic factors for the the the rural community to be included in in fin the financial system Based on on data analysis of 157 questionnaires rural community is predominantly included in in in fin the the financial system via deposit rather than credit (loan) segment The household income is positively correlated to the banking activities which include deposits and withdrawals from active accounts visits to to automated teller machines (ATMs) and and bank branches and and application for credit facilities Various aspects influence banking preference of the the rural community among others proximity to to their housing location availability of ATMs safety and and security and and staff courtesy Due to to limited availability of of bank branches in in their vicinity majority of of the the rural community would commonly stick to one preferred bank at at at all times Their financial literacy is far from demonstrating a a a a a a a a a a matured level but is evident for for some basic expectations such as as as setting aside funds for for emergency purposes keeping records of of spending and remaining alert of of upcoming bills The finding supports that rural community is averagely included in in fin in in the the the financial system but the the the extent of their inclusion is depending on on various factors such as their banking preference and financial literacy Despite inconclusive findings due to limited sample size this study provides valuable insights relating to the ‘underbanked’ populations KEYWORDS: Financial financial inclusion literacy banking rural community Book of Abstracts 59