Understanding financial trends through LPS publications using big data topic modeling: a Shariah and conventional finance perspective

Purpose The purpose of this study is to provide a comprehensive analysis of annual publications by the Indonesia Deposit Insurance Corporation [Lembaga Penjamin Simpanan (LPS)] from 2006 to 2024, focusing on trends in Shariah and conventional finance. The research examines the evolution of financial stability mechanisms, regulatory changes and market dynamics within Indonesia’s banking sector, specifically analyzing savings distribution data from March 2020 to March 2024 to capture recent trends and insights. Design/methodology/approach This analysis uses time series data detailing savings distribution for both conventional and Sharia banks, enabling the application of vector autoregression (VAR) modeling techniques. This approach allows for the exploration of dynamic interrelationships between economic variables. Additionally, the authors leverage qualitative insights from LPS publication reports spanning from 2006 to 2024 to provide a broader context of financial literacy and inclusion initiatives, particularly in regions like Banda Aceh. Findings The findings suggest that while significant progress has been made in promoting financial stability and literacy, disparities persist between Shariah and conventional banking sectors. Recommendations include tailored financial literacy programs addressing the specific needs of Banda Aceh’s population, considering its cultural and religious context. Practical implications The findings underscore the imperative for policymakers to prioritize financial literacy initiatives customized to local circumstances, thereby augmenting the community’s capacity to make educated financial decisions. Incorporating financial education into educational curriculum and community programs can enhance awareness and involvement with financial goods. Furthermore, cooperation among government entities, non-governmental organizations and the private sector is crucial for creating accessible resources that cater to distinct regional requirements, thereby fostering economic stability and enabling individuals to proficiently manage their finances. This strategy may enhance financial stability and fortitude in the face of economic adversities. Social implications Improving financial literacy may profoundly influence social fairness by equipping marginalized people with vital financial competencies. As individuals acquire knowledge and confidence in financial management, they can make more informed decisions concerning savings, investments and debt management. This empowerment enhances economic mobility, diminishes reliance on exploitative loans and encourages prudent financial practices. Moreover, enhanced financial literacy can fortify communal bonds by promoting collaborative financial endeavors, such as savings groups or cooperative investments. A financially educated society can ultimately lead to diminished inequality, enhanced overall well-being and a more resilient community in response to economic problems. Originality/value This study underscores the importance of continuous monitoring and adaptive strategies to foster a more inclusive and informed financial ecosystem in Indonesia. By integrating both quantitative and qualitative datasets, this research contributes valuable insights for policymakers, educators and financial institutions regarding the interplay between financial regulation, literacy and inclusion.