Toward a sustainable pawnshop sector: A five-year roadmap for technology-driven resilience and financial inclusion amid gold price fluctuations

Abstract

Background: Gold price volatility poses a significant risk to Indonesia's pawnshop sector (Pegadaian), a financial institution that serves as a critical source of accessible credit for underbanked communities, including micro, small, and medium-sized enterprises (MSMEs) and low-income households. Beyond its economic function, the pawnshop sector plays a role in community financial resilience and poverty alleviation, making its stability a matter of sustainable development. Methods: This study uses a literature review methodology, synthesizing prior research on gold price volatility, financial technology adoption, and inclusive finance to formulate a five-year innovation roadmap. Findings: The findings show that real-time gold price monitoring, blockchain-based transparency, diversified (non-gold) collateral products, and hedging instruments can strengthen pawnshop resilience, while also expanding equitable access to credit for underserved populations, particularly in remote areas. Conclusion: Technological innovation paired with supportive policy can simultaneously stabilize the pawnshop sector and advance financial inclusion as a pathway to sustainable, community-centered economic development. Novelty/Originality of this article: This study contributes a structured roadmap linking financial risk management in the pawnshop sector to broader sustainability and inclusive-growth goals, an intersection largely unexplored in existing literature.