DOMINANT FACTOR OF BANKING ESTABLISHMENT A CASE STUDY OF THREE VILLAGES IN SOUTH SUMATERA

Abstract

The aim of this research is to analyze the dominant factor of the bank before they establish a bank in remote area. In this research, the researcher find the problem of the people who are living in remote area, especially in South Sumatera which are in Lais, Langkap, and Bonot are difficult to get banking access and services. This research are related with the financial inclusion. Actually, after the reseacher do analyze people who are living in remote area, they have a big potential market for the bank. They have enough money to saving in that financial institution. In this research of study the researcher identified that people who are living in remote area, they dont know all information about bank, what are the advantages that bank will give to them. In this research mostly respondent work as a farmer of rubber and palm tree and the rest of respondents are working in oil & gas company which is PT Medco E&P Indonesia. The level of education of people still low, mostly they only graduated from elementary until junior high school. This research of study using quantitative research methodology, and to get the data, the researcher using a primary data which is questionnaire. There are 60 respondents for the research. The respondents come from 3 villages in South Sumatera, which are Lais, Langkap and Bonot. People who are living in this area still do not have any facilities of the bank yet. Although, actually they have a potential market for the bank to open a new branch office in there. This study using analysis factor and SPSS 16 to process the data. The limitation of this study is the researcher have to guide the respondents and explain to them of the purpose of this research before they answer the questionnaire. Besides that, transportation between one village to another village so far and difficult. However, the result of factor analysis calculation only represents 68.176% of the cumulative percentage variance, so it means that there is 31.824% of variance that are not represented during the study. From this research of the study, the results there are six factors in order to identify the dominant factor of the establishment a new branch of the bank in remote area South Sumatera which are bank helps the economic growth, patern of services, bank services information, bank reputation towards security, customers characteristic towards to habit, and bank towards to infrastructure.