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Financial Literacy and Work Engagement as Mediating Variable to Bank Agent's Performance

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  • Shelfi Malinda
  • Dian Masyita
  • Sulaeman Rahman
  • Mokhamad Anwar

Abstract

This study aims to analyze the direct effects of financial literacy and work engagement on agent’s performance in the implementation of branchless banking strategy. It also aims to analyze the indirect effect of financial literacy on agent's performance if work engagement becomes a mediating variable. This research model is exploratory research with a survey method and purposive sampling technique. The data obtained from primary data sources using questionnaires to 85 active agents in Palembang, Indonesia. It was analyzed by using path analysis through Structured Equation Modeling-Partial Least Square (SEM-PLS) technique. The result shows that the level of financial literacy and work engagement positively affect agent's performance directly, but financial literacy has negative effect on work engagement and on agent's performance indirectly. It shows that without the feeling of being engaged to the bank, it will weaken the influence of agent's financial literacy on agent’s performance. Therefore, it is advisable for banks to keep and maintain the agent's work engagement, which in turn will affect the performance of agents.

Suggested Citation

  • Shelfi Malinda & Dian Masyita & Sulaeman Rahman & Mokhamad Anwar, 2018. "Financial Literacy and Work Engagement as Mediating Variable to Bank Agent's Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 503-518.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:special3:p:503-518
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