Transforming Financial Inclusion through Big Data–Driven and AI–Powered Fintech in Indonesia

Abstract

Financial inclusion in Indonesia still faces significant challenges, despite the national target of 90% by 2024. The rapid development of digital technology, particularly the integration of Big Data and Artificial Intelligence (AI), has become a major driver of financial inclusion through fintech innovation. This study analyses the role of Big Data and AI in promoting financial inclusion in Indonesia by examining the opportunities, challenges, and implications for regulators, industry players, and the public. Using a quantitative approach through panel data regression for the period 2020-2024, this study examines the influence of GDP, education, and internet access on the financial inclusion index. The findings show that Big Data and AI-based technologies can improve the accuracy of risk assessment, expand credit access, and support the recovery of financial inclusion. However, challenges such as digital infrastructure gaps, data privacy issues, and human resource limitations remain major obstacles. This study provides evidence-based recommendations for policymakers and practical strategies for fintech players to build a more inclusive financial ecosystem in Indonesia.