Microfinance and Financial Inclusion

2017 ◽  
Author(s):  
Philip Mader
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Inclusion ◽  
The Social ◽  
Low Incomes ◽  
Recent Developments ◽  
Cost Efficient ◽  
And Gender ◽  
Gender Impacts ◽  
The Impact

This article examines the impact of microfinance—the provision of financial services to poor and low-income populations, usually in the global South—on poverty. Microfinance is regarded as a financial market solution to the social problem of poverty, promising poverty alleviation in a market-friendly and cost-efficient way. Proponents hope that the financial inclusion of poor and low-income population segments will help them cope better with multifaceted problems of poverty, in particular their uncertain and low incomes. This article first provides an overview of microfinance, focusing on its economic and gender impacts, before tracing the microfinance sector’s historical origins and rise. It also considers the practices of the microfinance sector as well as the critical debates over microfinance. Finally, it describes three sets of recent developments relating to microfinance: a spate of crises including overindebtedness and collapse, new methods and mission, and the sector’s expanding scope of activities.

Financial Inclusion and Gender Inequality Reduction: Evidence from Sub-Saharan Africa

2019 ◽  
Vol 67 (3-4) ◽  
pp. 367-372
Author(s):  
Sylvester Ohiomu ◽  
Evelyn Nwamaka Ogbeide-Osaretin
Keyword(s):  
Gender Inequality ◽  
Financial Services ◽  
Negative Impact ◽  
Estimation Method ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Sub Saharan ◽  
The Government ◽  
And Gender ◽  
The Impact

Reduced inequality and gender equality are parts of the sustainable development goals (SDGs) towards global development, but the financial sector appears daunted in respect of financial inclusion for these noble goals. Concerns are more on gender inequality in the area of full utilisation of financial and human resources. Hence, this study investigated the impact of financial inclusion on gender inequality in sub-Saharan Africa. The study employed the generalised method of moments (GMM) estimation method on panel data on some countries in sub-Saharan Africa. The result of the study revealed that financial inclusion substantially reduced gender inequality. Financial inclusion access was found to drive down gender inequality more than usage. Female educational levels were found to have a substantial but negative impact on gender inequality. This study recommends that there is a need for an increase in commercial bank branches to increase accessibility to financial services. The government should increase its expenditure, and this should be channelled towards financial development and higher levels of education for females to improve financial literacy.

Working Men Views of Poverty

2016 ◽  
Vol 19 (5) ◽  
pp. 480-502 ◽  
Author(s):  
Roni Strier ◽  
Zvi Eisikovits ◽  
Laura Sigad ◽  
Eli Buchbinder
Keyword(s):  
Low Income ◽  
Developed Countries ◽  
Working Poor ◽  
Meaning Of Work ◽  
The Social ◽  
Constructivist Perspective ◽  
And Gender ◽  
And Coping ◽  
The Impact ◽  
Poor Population

Despite the alarming numbers of workers living in poverty in developed countries, work is still commonly seen as a way out of poverty. From a social constructivist perspective and based on qualitative research of the working poor in Israel, the article explores low-income Arab and Jewish working men’s views of poverty. It addresses research topics such as the meaning of work, the perception of the workplace, and the experience of poverty and coping strategies. In addition, the article examines the presence of ethnic differences in the social construction of in-work poverty. At the theoretical level, the article questions dominant views of work as the main exit from poverty, highlights the impact of gender and ethnicity in the construction of in-work poverty, and suggests the need for more context and gender-informed policies to respond to the complexity of the male working poor population.

scholarly journals The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges

2021 ◽  
Vol 5 (1) ◽  
pp. 95-101
Author(s):  
Hashim Sabo Bello ◽  
Shamsuddeen Abubakar ◽  
Sunusi Abdulkadir Fateh
Keyword(s):  
Social Services ◽  
Low Income ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Islamic Microfinance ◽  
And Gender ◽  
High Level ◽  
Financial Transactions ◽  
The Impact

One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.

scholarly journals Predicting The Impact of Commercialization Factors on The Social Mission of Islamic Microfinance Institutions for Muslim Community

2020 ◽  
Vol 6 (1) ◽  
pp. 14
Author(s):  
Hesi Eka Puteri
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Quantitative Research ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Muslim Community ◽  
Social Mission ◽  
The Social ◽  
Community Banking ◽  
The Impact

<p class="abstrak">As a community banking operating in Islamic principles, Islamic rural banks are faced with two performance targets namely financial performance and social performance which are both interrelated. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of Islamic rural banks. This study was quantitative research based on a survey on six units of Islamic rural banks in West Sumatera province of Indonesia from 2012 to 2018. Data collected from the publication of financial services authority and other financial documents at Islamic rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced social performance. Meanwhile, there was no regulation’s impact on social performance.  Regulatory factors that were initially expected to strengthen the social responsibility mission of Islamic rural banks, did not stimulate the increase of social performance. This study reveals the importance of the commercialization factor in improving the social performance of Islamic rural banks by increasing the social benefits through providing financial services for the low-income Muslim community.</p><p class="abstrak" align="left"> <em>Sebagai sebuah community banking yang beroperasi dalam prinsip-prinsip Islam, BPR Syariah dihadapkan pada dua target kinerja yaitu kinerja keuangan dan kinerja sosial yang keduanya saling terkait. Penelitian ini bertujuan untuk menguji dampak dari faktor-faktor komersialisasi yang meliputi profitabilitas, regulasi dan kompetisi terhadap kinerja sosial BPR Syariah. Penelitian ini menggunakan pendekatan kuantitatif berdasarkan survei pada enam unit BPR Syariah di provinsi Sumatera Barat Indonesia dari tahun 2012 hingga 2018. Data dikumpulkan dari publikasi Otoritas Jasa Keuangan dan dokumen keuangan lainnya di BPR Syariah kemudian dianalisis dengan regresi data panel. Hasil penelitian ini menunjukkan bahwa profitabilitas dan persaingan berpengaruh terhadap kinerja sosial, sedangkan regulasi tidak berpengaruh terhadap kinerja sosial. Faktor regulasi yang semula diharapkan memperkuat misi tanggung jawab sosial BPR syariah, ternyata tidak merangsang peningkatan kinerja sosial. Studi ini mengungkap akan pentingnya faktor komersialisasi dalam meningkatkan kinerja sosial BPR syariah dengan meningkatkan manfaat sosial melalui pemberian layanan keuangan untuk masyarakat muslim berpenghasilan rendah.</em></p><p class="abstrak"> </p>

scholarly journals FINANCIAL INCLUSION AND WOMEN EMPOWERMENT: A GENDER PERSPECTIVE

2018 ◽  
Vol 6 (5) ◽  
pp. 229-237
Author(s):  
Bincy George ◽  
K.T. Thomachan
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Inclusion ◽  
Women Empowerment ◽  
Bank Account ◽  
Banking Services ◽  
Income Groups ◽  
The Social ◽  
Social And Economic Development ◽  
Low Income Groups

This paper examines women empowerment associated with financial inclusion. Financial inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged and the low-income groups. The various financial services include access to saving, credit, insurance, bank account etc. The access to financial services helps women in their social and economic development. It is noted that access to financial service through financial inclusion do have impact upon the social and financial empowerment of women leading to their overall empowerment.

Impact of Financial Inclusion on Indian Economy

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 563-569
Author(s):  
BHARTI
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Fortune 500 ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Indian Economy ◽  
The World ◽  
Banking Institution ◽  
The Impact

Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. The term financial inclusion has evolved since late 2000 and it’s directly correlated to poverty. More and more Indian companies are trying to enter in the list of fortune 500 and one of our Indian entrepreneurs appears in the list of the top five richest persons of the world. Financial inclusion has become an evolving paradigm of economic growth that plays very significant role in poverty alleviation. The main objective of the study is to analyze the impact of financial inclusion in the growth of Indian economy and the initiatives taken by the banking institution in India to attain inclusive growth.

scholarly journals La “Billetera Móvil” del BCE, una iniciativa estatal contra la pobreza: efectos económicos / The BCE “Mobile Wallet”, a state initiative against poverty: economic factors

Ciencia Unemi ◽  
2015 ◽  
Vol 8 (13) ◽  
pp. 100
Author(s):  
Fabricio Zanzzi Díaz ◽  
Carlos Bonilla Richero ◽  
Franklin Gaibor Vera
Keyword(s):  
Mobile Device ◽  
Low Income ◽  
Financial Services ◽  
Social Indicators ◽  
Economic Value ◽  
Financial Inclusion ◽  
Mobile Payment ◽  
Economic Factors ◽  
State Initiative ◽  
The Impact

ResumenLa “billetera móvil” es un proyecto que el Banco Central del Ecuador (BCE) diseñó para ayudar a que la población asentada en las zonas de bajos ingresos, rurales y urbano-marginales, tenga acceso a los servicios financieros. Es básicamente un sistema de pagos móviles, que se define como un pago donde un dispositivo móvil se utiliza para iniciar, autorizar y confirmar un intercambio de valor económico de bienes y servicios. Se determinó el potencial incremento de la inclusión financiera como consecuencia de la implementación del proyecto y en base a ello se calculó el impacto que tiene en la economía del país. Se puede observar el resultado en la productividad, el ahorro, el emprendimiento y el empleo, entre otros indicadores de carácter social que resultaron con mejoras. Además, se puede ver la importancia que tiene la inclusión financiera para combatir la pobreza mediante una pequeña inversión del país.Palabras Clave: desarrollo económico, pobreza, proyectos sociales, dinero electrónico. The “mobile wallet (billetera móvil)” is a project designed by the Central Bank of Ecuador (BCE) to help people settled in low income areas to access the financial services. It’s basically a mobile payment system, which is defined as a payment where a mobile device is used to initiate, authorize and confirm an exchange of economic value between goods and services.We calculate the increase in financial inclusion as a result of making real this project and based on this we calculated the impact on the economy of our country. You can see the results in productivity, savings, entrepreneurship, employment and other social indicators, too. Furthermore, we can see the importance of financial inclusion and how a small investment by the state can help the fight against poverty.

scholarly journals Financial Inclusion in Zimbabwe: Determinants, Challenges, and Opportunities

2021 ◽  
Vol 12 (3) ◽  
pp. 261
Author(s):  
Florence Barugahara
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial System ◽  
The Elderly ◽  
Financial Inclusion ◽  
Challenges And Opportunities ◽  
Identification Documents ◽  
The Government ◽  
And Gender

Financial inclusion is a highly topical issue for policymakers since inclusive finance is viewed as a channel of social and economic development. Therefore, this paper seeks to ascertain and examine the determinants, challenges, and opportunities for financial inclusion in Zimbabwe. The research is done by examining existing literature and estimating Logit and Probit models. This paper finds that, the major determinants of financial inclusion in Zimbabwe are; gender, age, education, income levels, employment status, the cost of financial services, account opening requirements, and level of trust in the financial system. Challenges to financial inclusion in Zimbabwe include; financial illiteracy, lack of formal identification documents, lack of trust in the financial system, fragile economy, rural poor and gender inequality, and high transaction costs of financial services. However, mobile money services such as Eco-cash, Tel-cash, and One-money have proved an opportunity for inclusive finance in Zimbabwe. Furthermore, the establishment of the women’s Bank of Zimbabwe is one of the strategies to enhance inclusive finance for women in Zimbabwe. The simplified KYC requirements for low-income groups and the financial inclusion strategy commissioned by the Reserve Bank of Zimbabwe are hoped to promote financial inclusion. This paper recommended that to make finance inclusive, the government should develop policies that target marginalized groups such as the elderly, rural population, low-income earners, females, and the unemployed. The government should also develop a strong consumer protection regulatory framework, promote financial literacy, reduce the transaction cost of financial services and encourage the use of accounts with simplified KYC requirements to ease documentation needs.

PAR Method

2010 ◽  
Vol 3 (3) ◽  
pp. 355-375 ◽  
Author(s):  
Michelle Billies
Keyword(s):  
New York ◽  
Low Income ◽  
Critical Consciousness ◽  
Design Method ◽  
Participatory Action ◽  
Community Members ◽  
Context Analysis ◽  
Gender Nonconforming ◽  
The Social ◽  
And Gender

The work of the Welfare Warriors Research Collaborative (WWRC), a participatory action research (PAR) project that looks at how low income lesbian, gay, bisexual, transgender, and gender nonconforming (LG-BTGNC) people survive and resist violence and discrimination in New York City, raises the question of what it means to make conscientization, or critical consciousness, a core feature of PAR. Guishard's (2009) reconceptualization of conscientization as “moments of consciousness” provides a new way of looking at what seemed to be missing from WWRC's process and analysis. According to Guishard, rather than a singular awakening, critical consciousness emerges continually through interactions with others and the social context. Analysis of the WWRC's process demonstrates that PAR researchers doing “PAR deep” (Fine, 2008)—research in which community members share in all aspects of design, method, analysis and product development—should have an agenda for developing critical consciousness, just as they would have agendas for participation, for action, and for research.

scholarly journals Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 80
Author(s):  
Rosmah Nizam ◽  
Zulkefly Abdul Karim ◽  
Tamat Sarmidi ◽  
Aisyah Abdul Rahman
Keyword(s):  
Financial Services ◽  
Firm Growth ◽  
Manufacturing Sector ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Manufacturing Firm ◽  
New Findings ◽  
Asean Countries ◽  
The Impact ◽  
Threshold Point

This paper examines the effect of financial inclusion on the firm growth of the manufacturing sector (513 firms) in selected ASEAN countries (Malaysia, Philippines, and Vietnam) using a cross-section threshold estimation technique. The levels of financial inclusion across firms were measured based on the distribution of financial services (access to credit). The main findings revealed that there is a non-monotonic effect of financial inclusion on the firm’s growth. These findings show that the impact of financial inclusion on firm growth in the manufacturing sector is significantly positive below a threshold point, and turns to significantly negative after a certain threshold point has been reached. These new findings suggest that manufacturing firm owners and banking institutions should deepen their financial inclusion efforts, and limit the distribution of credit access within the optimum value or threshold level in promoting the growth of the firm.

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