The Role of Village Banks In Reducing Poverty In Sengguruh Village, Kepanjen District, Malang Regency

Jose Rizal Joesoef; Hertoto Dwiyoso; Sulistiyanti; Adinda Dwi  Putri

Authors

Jose Rizal Joesoef Gajayana University Malang Author
Hertoto Dwiyoso Gajayana University Malang Author
Sulistiyanti Gajayana University Malang Author
Adinda Dwi Putri Gajayana University Malang Author

Keywords:

Village Bank, Poverty, Community Income, Village Communities

Abstract

This study aims to describe the role of Village Banks in reducing poverty and increasing community income in Sengguruh Village, Kepanjen District, Malang Regency. Using a descriptive qualitative approach, data were collected through interviews, observations, and documentation of Village Bank customers and managers. The results indicate that Village Banks facilitate access to business financing, encourage increased income, and foster more independent financial behavior. Convenient services, low interest rates, and a family-like approach make Village Banks a more humane financing alternative compared to informal institutions. Despite facing limited capital and low financial literacy, Village Banks continue to play a strategic role in empowering the rural economy.

Downloads

Download data is not yet available.

References

1. Abramova, I., Nedilska, L., Kurovska, N., & Martynyuk, H. (2021). Financial inclusion in the context of sustainable development of rural areas. Management theory and studies for rural business and infrastructure development, 43(3), 328-336.

2. Akudugu, M. A. (2011). Rural banks' financial capital and livelihoods development of women farmers in Ghana. Journal of Enterprising Communities: People and Places in the Global Economy, 5(4), 248-264.

3. Allen, Franklin. et al. (2016). The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts. Journal of Financial Intermediation, 27, 1–30.

4. Azzahra, A. (2024). Harnessing Village Resources for Economic Independence: A Study on Local Entrepreneurship and Skill Development. Journal of Village Development Innovation, 1(1), 1-14.

5. Alviant. (2022). Efektivitas Pengelolaan Badan Usaha Milik Desa (BUMDes) terhadap Kesejahteraan Ekonomi Masyarakat Desa Kupa, Kecamatan Mallusetasi Kabupaten Barru. Institut Agama Islam Negeri Parepare PROGRAM.

6. Badan Kebijakan Fiskal. (2018). Kajian Dana Desa, Analisis Empiris Badan Usaha Milik Desa, Kesempatan Kerja, dan Infrastruktur pada Seribu Desa di Indonesia. Kementerian Keuangan.

7. Badan Pusat Statistik Kabupaten Malang (2025). Kecamatan Kepanjen dalam Angka.

8. Hardani, Andriani. dkk (2020). Metode Penelitian Kualitatif & Kuantitatif. CV. Pustaka Ilmu Group.

9. Hendricks, L., & Chidiac, S. (2011). Village savings and loans: A pathway to financial inclusion for Africa’s poorest households. Enterprise Development and Microfinance, 22(2), 134-146.

10. Indika, Miki. Yayuk Marliza. (2019). Upaya-Upaya Pemberdayaan Usaha Mikro Kecil Menengah (UMKM) dalam Mengatasi Kemiskinan di Kecamatan Tugumulyo Kabupaten Musi Rawas. mbia, e-ISSN: 2655-8262. 18(3), 49–66. https://journal.binadarma.ac.id>index.php

11. Izzati, A. Nur, & Indrawati, L. R. (2021). Analisis Pengaruh Pendapatan Asli Daerah dan Dana Bagi Hasil terhadap Tingkat Kemiskinan di Kota Magelang. Jurnal Paradigma Multidisipliner (JPM), 2(4), 333–340.

12. Jain, R., Panghal, A., & Chaudhary, N. (2024). Financial Inclusion in Rural Areas and Poverty Reduction in India. In E-Financial Strategies for Advancing Sustainable Development: Fostering Financial Inclusion and Alleviating Poverty (pp. 73-88). Cham: Springer Nature Switzerland.

13. Kabir, M. H. (2016). Village banks: a financial strategy for developing the South African poor households. Banks and Bank Systems.

14. Kurniawan, A. (2019). Tantangan dan Peluang Bank Desa dalam Meningkatkan Inklusi Keuangan di Pedesaan. Jurnal Ekonomi Dan Bisnis, 12(2), 45–60.

15. MacPherson, S., & Silburn, R. (2002). The meaning and measurement of poverty. In Poverty (pp. 1-19). Routledge.

16. Setiawan, F. (2019). Pengaruh Teori Pembangunan Dunia Ketiga dalam Teori Modernisasi terhadap Administrasi Pembangunan di Indonesia. Jurnal Ilmu Sosial, Politik dan Pemerintahan, 8(2), 59–60.

17. Shuang, Whang, Wang Ji-Heng, Liu Bing, Yu Xiao-Wen. (2015). Analysis on Sustainable Development Management Model of Village Banks — Based on Bayan Rongxing Village Bank in Heilongjiang Province. Journal of Northeast Agricultural University, 22(4), 75–82.

18. Sishumba, J., & Mulonda, M. (2019). Village banking: A feasible tool for accelerating financial inclusion for the unbanked poor communities in Zambia. Journal of Humanities and Social Sciences Studies, 1(6), 51-62.

19. Todaro, Michael P. & Stephen C. Smith. (2014). Economic Development. 12th Edition. Peorson.

20. Ulum, Mochamad. Chazienul. Niken Lastiti Veri Anggaini. (2020). Teori Pemberdayaan Komunitas. UB Press.

21. Zeller, M. (2003, June). Models of rural financial institutions. In paper for “Paving the Way Forward: An International Conference on Best Practices in Rural Finance”, Washington, DC (pp. 2-4).