Abstract

A lot of small business activities become unbanked. The constraints faced related to knowledge limitations, limitations of information access and difficult requirements. The existence of branchless banking (BB) will help small business activities. They can easily to access formal financial institutions such as saving, payment, credit and insurance. The research aims to determine the regional industry core competence (RICC) in Salatiga, to find out the designing factors of BB and to choose the model of BB. The data used are secondary and primary data. Primary data obtained through interview and questionnaire from 200 small business activities. Scoring analysis based on OVOP criteria are used to determine RICC and to select branchless banking model used validity, reliability, factoring test and distribution of frequency. The study concluded that there are three superior products in Salatiga and one of them is processed food industry to be RICC and the corresponding BB model is the Bank Based Model.

Authors and Affiliations