The role of pawnshops service digitalization through the Tring application in increasing financial inclusion for generation Z in the digital economy era

Abstract

Background: The financial industry has been making significant investments in financial technology, especially in developing countries such as Indonesia, to achieve national financial inclusion goals. PT Pegadaian has responded to this transformation by digitizing its services through the launch of the Tring application, which resulted from the transformation of the Pegadaian Digital Service. This study aims to analyze the role of Pegadaian’s service digitalization through the Tring application in promoting financial inclusion among Generation Z in the era of the digital economy. Methods: The research method used is descriptive qualitative, with data collected through interviews, observations, and documentation involving employees and Generation Z customers who use the Tring by Pegadaian application. Findings: This study found that the digitalization of services through the Tring application plays a significant role in increasing ease of access, transaction efficiency, and Generation Z’s trust in formal financial products at Pegadaian. Conclusion: These findings also indicate that the use of the Tring application is driving an increase in the number of Generation Z users and strengthening PT Pegadaian’s role in supporting national financial inclusion through more adaptive and accessible digital services. However, challenges remain, including gaps in digital financial literacy, limited educational features, and a lack of understanding of data security. This study recommends implementing a hybrid service strategy that integrates online and offline systems to expand financial inclusion. Novelty/Originality of this article: This study provides new insights into non-bank digital financial inclusion by specifically analyzing how the transformation of a traditional microfinance institution into a dedicated mobile app (Tring by Pegadaian) affects financial access, trust, and adoption behavior among Generation Z in the context of a rapidly evolving digital economy.