Financial inclusion, financial technology, and economic development: a composite index approach

This study investigates the effect of fintech on financial inclusion, and financial literacy, it was able to influence financial literacy on financial inclusion in Lubuklinggau. The research was conducted by distributing questionnaires to eight districts in the city of Lubuklinggau with a total sample of 401 people who use fintech as the main requirement. Data analysis was carried out with WarpPLS to identify direct and indirect effects on the tested variables. Based on the results, the perception of the ease and effectiveness of using fintech does not affect financial inclusion in Lubuklinggau. People are still not familiar with fintech and consider fintech as a new financial system and not easy to use. The level of risk and interest in using fintech has a significant influence on the financial inclusion variable in the Lubuklinggau. The indirect analysis explains it proves that financial literacy is able to moderate perceptions of the ease of using fintech and reduce the risk of fintech itself on financial inclusion. However, financial literacy is not able to moderate the effectiveness of using fintech and interest in financial inclusion to use of fintech after understanding financial literacy, people become more selective in using fintech.

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Financial Technology (Fin-Tech): Revolutionizing the Indian Agrarian Sector

International Journal of Innovative Technology and Exploring Engineering - Special Issue ◽

10.35940/ijitee.l1001.10812s319 ◽

2020 ◽

Vol 8 (12s3) ◽

pp. 1-8

Keyword(s):

Financial Literacy ◽

Financial Services ◽

Risk Sharing ◽

Financial Inclusion ◽

Indian Government ◽

Agricultural Finance ◽

Agricultural Growth ◽

Two Factors ◽

Financial Technology

Agriculture is the largest employer of India which constitutes 50% of its workforce and also a contributor to 17-18% in its GDP. Still, it is one of the most disorganized and disjointed sector.Somewhere this sector has not been given due attention and itcan be proven with the fact that the GDP contribution of this sector has fallen from 43% to 18% (1970- 2018).Though the Indian Government is digitally driving to provide financial inclusion to more than 145 million households that are not having access to banking services but still the farmers aremajorlyusing traditional credit for their basic and main two factors; Production & Consumption (Distribution). The financial segment has an important role to make agriculture aprime contributorto the economic growth of the country and also in reducing poverty. A fast-evolving technological landscape is bringing up new potential to focus&provide credit, risk-sharing, and to explore technology to enhance agricultural productivity. Our paper firstly examines agricultural finance in the Indian context and then discusses how financial technology (Fin-Tech) can drive new products in credit and risk markets in India. We evaluate the role of mobile banking, financial literacy, digital financial services, digital financial technology, and block-chain technology. The paper is concluded with a discussion of policy takeaways for Fin-Tech in agriculture to promote agricultural growth, enhance financial inclusion, and improve regional economic integration through agriculture.

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Financial Inclusion in Developing Countries: Applying Financial Technology as a Panacea

South Asian Journal of Social Studies and Economics ◽

10.9734/sajsse/2021/v9i230237 ◽

2021 ◽

pp. 42-60

Author(s):

Araniyar Isukul ◽

Ben Tantua

Keyword(s):

Developing Countries ◽

Financial Development ◽

Low Income ◽

Quantitative Methods ◽

Cost Effective ◽

Financial Inclusion ◽

Viable Option ◽

Policy Objective ◽

Banking Business ◽

Financial Technology

Traditional banking methods of addressing the problem of financial inclusion in developing countries is not working efficiently. As it is becoming obvious, opening operational and functional banking business offices in many developing countries is not a financially viable option. Banking offices need enormous amounts of resources, equipment and personnel to run efficiently. In most developing countries were low income is the norm rather than the exception, it is not possible to sustain a policy objective that employs the use of banking business offices to address the problem of financial inclusion. Such initiative could start out well, however the possibility of sustainability is called into question. Thus, whatever meaningful gains have been garnered from such policy will be reversed or lost overtime. This research employs the use of quantitative methods and it sets out to test whether the usage of financial technology has had any meaningful impact in improving financial inclusion in the developing countries selected in the study. The findings of the research reveal that financial technology offers the instrument, tools and mechanism for drive financial inclusion in ways traditional methods of banking cannot. Financial technology offers, cost effective and cheaper means of driving financial development. This research suggests that financial technology should be used as a means of driving financial development in developing countries as it offers a more sustainable and cost-effective solution to the problem of financial inclusion. Developing countries, should embrace, adopt and adapt financial technologies to address their financial development issues.

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The First Android Based Sharia Fintech Innovation In Indonesia To Increase Inclusive and Literate on Society’s Finance

International Journal of Emerging Issues in Islamic Studies ◽

10.31098/ijeiis.v1i2.703 ◽

2021 ◽

Vol 1 (2) ◽

pp. 01-19

Author(s):

Suhartono Suhartono ◽

Juniato Sidauruk ◽

Octa Pratama Putra ◽

Syamsul Bahri ◽

Martias Martias ◽

...

Keyword(s):

Financial Services ◽

Research Method ◽

Banking Sector ◽

Financial Inclusion ◽

Descriptive Research ◽

Technology Industry ◽

Technical Procedure ◽

Interview Session ◽

Personal Finances ◽

Financial Technology

Technology has become the part of today’s people life. Then, it is actually close to the application of it. Absolutely, it has example; such as the electricity for having more sophisticated in financial technology (Fin-Tech). The simplicity and speed of this technology have led people to adopt it in everyday’s life. One of the innovations in developing business and the economy, especially in the banking sector, is currently to develop Fintech (Financial Technology) which is able to facilitate all types of buying and selling transactions, investments and fundraising. Next, the purpose of this study is to explain and provide an understanding of the technical, procedures and benefits of the application, it is called Sharia FinTech. Then, it is also to contribute to the literature on the capacity of the latest technological and non-technological innovations. The research method used is descriptive research method with a qualitative approach. It is to describe and explore the phenomena in the form of engineering human innovation in the financial technology industry. It is done by taking into account the characteristics, quality, and interrelationships between activities It has several aspects; they are: conducting the observation, having an interview session, creating the documentation, and the last one is doing the Literature review. The result of this study is to increase the knowledge, skills and confidence of the community in managing personal finances to be better and to provide access to be having convenient and accountable financial services. Afterwards, this study linits on explaining and providing an understanding of the technical, procedure and benefits of Sharia Fintech for all people in need. Thence, the limitation of the research only discusses the role of Islamic Fintech in increasing the public financial inclusion and literacy. As for the the next researchers, they can be even wider by adding the collaboration of fintech and the banking world. The novelty of this research is the use of the android application as a digital platform in financial inclusion and literacy.

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Journey of Financial Inclusion Driven by Indian Banking Industry

Marketing Techniques for Financial Inclusion and Development - Advances in Marketing, Customer Relationship Management, and E-Services ◽

10.4018/978-1-5225-4035-9.ch010 ◽

2018 ◽

pp. 186-223

Author(s):

Abhineet Saxena ◽

Ashish Sharma

Keyword(s):

Economic Development ◽

Financial Institutions ◽

Rural Areas ◽

Rural Population ◽

Banking Industry ◽

Financial Inclusion ◽

North Eastern ◽

North Eastern Part ◽

Made In

Financial institutions, especially banks, have proved to be a boon for the economic development of a country like India. An attempt has been made in the present chapter to analyze the state of financial inclusion and the role of banking in achieving full financial inclusion in India. The journey of financial inclusion through banking in India has been critically appraised. Some of the important outcomes that can be highlighted are increased banking access of rural population in past few years together with the huge expansion in banking infrastructure in rural areas. Banking in India has been transformed with the introduction of PMJDY, BC Model, etc. Increasing trend has been observed in IMPS and M-Wallet penetration. North-eastern part of the country is still a challenge in the way of financial inclusion. The journey of financial inclusion on the wheels of Indian banking industry is still in search of the ultimate destination, and it will take miles to achieve full financial inclusion.

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Factors Affecting the Indonesia Stock Exchange: A Multi-Index Approach

International Journal of Financial Research ◽

10.5430/ijfr.v11n2p196 ◽

2020 ◽

Vol 11 (2) ◽

pp. 196

Author(s):

Didik Susilo ◽

Sugeng Wahyudi ◽

Irene Rini Demi Pangestuti

Keyword(s):

Capital Market ◽

Stock Exchange ◽

Composite Index ◽

Market Conditions ◽

Factors Affecting ◽

Daily Data ◽

Index Approach ◽

The World ◽

Exchange Condition ◽

Regional Capital

This study examines the influence of world and regional capital market conditions on the Indonesian capital market (Indonesia Stock Exchange) condition. The DJIA (Dow Jones Industrial Average) index was used as a representative of the international capital market while the Hang Seng index and the Nikkei 225 index were used as a representative of regional capital market conditions. These two indices were chosen because the Japanese capital market was one of the most advanced capital markets in the world and the Hong Kong capital market, although not as big as Japan, still played an important role in the world. The data were obtained from Yahoo Finance during the period of 2014-2018. The dependent variable was the change in the JCI (Jakarta Composite Index), while the independent variables were changes in the index of DJIA, Nikkei 225 and Hang Seng index. Using daily data analyzed by the ARIMA method (1,1), it was found that there was a significant positive effect of DJIA with lag 1 and Hang Seng index on the JCI, but no significant effect was found from the Nikkei 225 index on the JCI.

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