Exploring the Nexus Between Digital Finance, Social Capital, Financial Literacy, and Islamic Financial Inclusion in Banda Aceh, Indonesia

This study aims to examine the effect of Islamic financial literacy on Islamic financial inclusion through the mediation of digital finance and social capital. Proportionate Stratified Random Sampling was used to select 385 samples from each of Banda Aceh City s 9 sub-districts. Afterward, the questionnaire data were analyzed using Structural Equation Modeling (SEM) in accordance with scientific standards. This study found two important things. First, Islamic financial literacy, digital finance, and social capital boost Banda Aceh s Islamic financial inclusion. Second, digital finance and social capital can mediate the effects of Islamic financial literacy on Banda Aceh s Islamic financial inclusion. This study emphasizes the need for a holistic approach, combining education, technology, and community trust to promote Islamic financial inclusion. Policymakers, educators, institutions, and community leaders can leverage these insights to contribute to a more inclusive Islamic finance ecosystem.

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