Yogyakarta – November 5th, 2021
In November, the Master of Science and Doctoral Program (MD) FEB UGM held a webinar activity again with the interesting topics that were still related to the previous webinar session. The webinar was successfully held online through a Zoom meeting on November 5th, 2021. The first topic discussed was “Big Data’s Role in Broadening Financial Inclusion in Developing Countries” and continued with the discussion of the second topic, “The Role of Artificial Intelligence in Promoting Financial Inclusion in Developing Countries.”
All of these topics were thoroughly discussed by a very extraordinary speaker, Prof. Nir Kshetri, lecturer at the Bryan School of Business and Economics, The University of North Carolina-Greensboro, and moderated by Mr. Eddy Junarsin, MBA., Ph.D., CFP., lecturer at the Faculty of Economics and Business, Gadjah Mada University. A total of 121 participants from among lecturers, students, alumni, and the general public, had the opportunity to attend this webinar.
The role of big data as a solution for transparency and transaction effectiveness is indeed very large and much needed in developing countries. Prof. Nir said that there are obstacles that cause the lack of financial inclusion in developing countries. The main obstacle is the high transaction costs, such as costs of measuring and costs of enforcement. This financial inclusion can be enhanced through the role of big data in reducing transaction costs and making access to financial services more effective and secure.
It should also be noted that the potential use of financial services in developing countries is very large, including in terms of loans. However, the ability to provide services and the technology used by banks is not sufficient, causing problems and not being able to optimally meet the needs of the community. The existence of information opacity, adverse selection, and moral hazard also add to the problem. Artificial intelligence (AI), which can combine big data quickly, accurately, and can work like humans, can facilitate the promotion of financial inclusion in developing countries. (Y)