Preference to Use Gold Based Financial Product : Case Study Bandung, West Java

Abstract

This study aims to analyze the adoption behavior of Indonesian society towards gold-based financial
products—specifically Gold Savings, Gold Installments, and Gold Pawns—through the integrated lenses of financial
inclusion and Rogers' Diffusion of Innovation (DOI) theory. These products, supported by digital technology
(especially for savings and installments), represent a significant innovation bridging traditional store-of-value concepts
with modern financial accessibility. A quantitative survey of 173 purposively sampled respondents in Bandung reveals
a clear hierarchy of preference and adoption. Gold Savings is the most dominant product (61.85%), followed by Gold
Installments (24.86%) and Gold Pawn (13.29%). Analysis using the five DOI dimensions shows that the Relative
Advantage dimension consistently scores the highest (mean=4.20 for Gold Savings), while Complexity is perceived as the
lowest barrier across all products. A critical and novel finding is the identification of a significant gap between formal
financial access (97.11% are bank customers) and the adoption of these specific innovative products (only 56.65% are
adopters). This gap highlights that true financial inclusion requires moving beyond mere account ownership to active
usage of diverse financial instruments. The study concludes with strategic implications for policymakers and financial
service providers, emphasizing the need to design inclusive products that highlight clear advantages, ensure
simplicity, and align with local financial behaviors and technological readiness.