Adoption of the Green Economy through Branchless Rural Credit Banks during the COVID-19 Pandemic in Indonesia

A. A. I. N. Marhaeni (), Kittisak Jermsittiparsert, Sudarmo, Lucia Rita Indrawati, Andjar Prasetyo, Noviati Fuada, Arnis Rachmadhani, Tri Weda Raharjo, Heri Wahyudianto, Bekti Putri Harwijayanti, Jonni Sitorus, Mochammad Fahlevi () and Mohammed Aljuaid
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A. A. I. N. Marhaeni: Department of Economic Development, Universitas Udayana, Bali 80361, Indonesia
Kittisak Jermsittiparsert: Faculty of Education, University of City Island, Famagusta 9945, Northern Cyprus, Cyprus
Sudarmo: Management Department, Sekolah Tinggi Ilmu Ekonomi Balikpapan, Balikpapan 76124, Indonesia
Lucia Rita Indrawati: Faculty of Economics, Tidar University, Magelang 56116, Indonesia
Andjar Prasetyo: Development Planning Agency of Magelang City, Magelang 56116, Indonesia
Noviati Fuada: Organization for Health, National Research and Innovation Agency, Jakarta 12710, Indonesia
Arnis Rachmadhani: National Research and Innovation Agency, Jakarta 12710, Indonesia
Tri Weda Raharjo: Regional Research and Development Agency of East Java Province, Surabaya 60111, Indonesia
Heri Wahyudianto: Regional Development Planning Agency of Papua Province, Jayapura 99225, Indonesia
Bekti Putri Harwijayanti: Poltekkes Kemenkes Semarang, Semarang 50268, Indonesia
Jonni Sitorus: Regional Research and Development Agency of North Sumatra Province, Medan 20241, Indonesia
Mohammed Aljuaid: Department of Health Administration, College of Business Administration, King Saud University, Riyadh 11451, Saudi Arabia

Sustainability, 2023, vol. 15, issue 3, 1-20

Abstract: A green economy has an impact on improving welfare, but it takes continuous efforts to achieve it from various fields. Contribution in the context of banking on a small scale is one of the initiatives that can show participation in achieving a green economy. This study aims to explore people’s behavior in financial transactions and analyze the practice of rural credit banks in encouraging the achievement of a green economy through the National Financial Inclusive Strategy (NFIS) program despite the COVID-19 pandemic. This study used quantitative approaches; observations were conducted at a certain time by collecting data taken directly as a complement to this study, as well as taking questionnaire data involving 363 samples and analyzing them using the structural equation model (SEM). The result is that green economic support is found in using paper for fewer savings transactions compared to branchless banking with conventional savings transactions. The high number of residents exposed to COVID-19 does not affect branchless banking. In addition, the use of branchless banking can show the penetration of financial literacy in the community. The results of the path analysis explain that perceived ease of use (7.468) and perceived usefulness (2.152) have an influence on attitude; intention is greatly influenced by attitude (15.357); and actual usage is influenced by intention (11.682). This research has specific implications for the Magelang City Rural Bank (MCRB), which needs to conduct market research to find out the potential of branchless banking that is specifically needed by the people of Magelang. Branchless banking innovation needs to be strengthened by presenting easy-to-understand and easy-to-use applications to improve the attitude of the Magelang people in adopting branchless banking applications and using them sustainably.

Keywords: behavior; urban residents; green economy; branchless; rural credit banks; COVID-19 pandemic (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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