Financial self-efficacy: a mediator in advancing financial inclusion

2017 ◽  
Vol 36 (2) ◽  
pp. 128-149 ◽  
Author(s):  
Rachel Mindra ◽  
Musa Moya
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Mediation Effects ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating effect of financial self-efficacy (FSE) on the relationship between financial attitude, financial literacy and financial inclusion (FI) among individuals in Uganda. Design/methodology/approach Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. Using SPSS and AMOS™ 21, structural equation models and bootstrapping methods were used to establish the hypothesized relationships and mediation effects between financial attitude, financial literacy and FI. Findings The results suggested FSE as a mediator of the relationship between financial attitude, financial literacy and FI. Further, there was a significant and insignificant relationship between financial literacy, financial attitude and FI, respectively. Research limitations/implications The study was assessed using both potential and actual consumers of financial services collectively. However if separately assessed, possibly there would be a variation in perceptions or behavioural responses towards FI. Practical implications There is a need to develop and sustain high levels of financial confidence among individuals to enable them use formal financial services. Social implications Possession of financial knowledge, skills, an evaluative judgement with high levels of financial confidence enable individuals make financial decisions that improve their integration into the formal financial system and improved welfare. Originality/value The results contribute towards the limited empirical and theoretical evidence regarding the mediating role of FSE in explaining the financial behaviour.

Social Networks and Subjective Norms: The Mediating effect of financial self efficacy on Financial Inclusion

2017 ◽  
Vol 13 (1) ◽  
pp. 1-26
Keyword(s):  
Social Networks ◽  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Subjective Norms ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Mediation Effects ◽  
The Relationship

Purpose: The purpose of this study was to examine the mediating effect of financial self- efficacy on the relationship between social networks, subjective norms and financial inclusion among individuals in Uganda. Design/Methodology/Approach: We used a quantitative approach and cross sectional research design with a sample of 400 individuals from urban Central and rural Northern Uganda. Structural equation modeling was used to establish and test the hypothesized relationships and mediation effects between social networks, subjective norms and financial inclusion. Findings: The results suggest that financial self-efficacy is a mediator of the relationship between social networks, subjective norms and financial inclusion. Furthermore, significant relationships between social networks, subjective norms and financial inclusion were found. Research Limitations: The study was assessed using both potential and actual consumers of financial services collectively. However, if separately assessed, possibly there would be a variation in perceptions or behavioral responses towards financial inclusion. Practical Implications: There is a need to develop and sustain high levels of financial confidence among individuals to enable them use formal financial services through the social networks and subjective norms in which they are embedded and social values they uphold. Originality/Value: The results contribute towards the limited empirical and theoretical evidence regarding the mediating role of financial self-efficacy in explaining financial behaviour.

Mobile money adoption and usage and financial inclusion: mediating effect of digital consumer protection

2020 ◽  
Vol 22 (3) ◽  
pp. 157-176
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Structural Equation ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Least Square ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Drawing from the argument that mobile money services have a significant potential to provide a wide range of affordable, convenient and secure financial services, there have been rampant frauds on consumers of financial products over the digital financial platform. Thus, this study aims to establish the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion with data collected from micro small and medium enterprises (MSMEs) in northern Uganda. Design/methodology/approach To achieve the main objective of this study, a research model was developed to test for the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion. The data were collected from MSMEs and structural equation modelling in partial least square (PLS) combined with bootstrap was applied to analyze and test the hypotheses of this study. The direct and indirect effect of mobile money adoption and usage on financial inclusion was tested through digital consumer protection as a mediator variable. Findings The findings from the PLS-structural equation modelling (SEM) showed that mobile money adoption and usage has both direct and indirect effect on financial inclusion. Moreover, financial inclusion is influenced by both mobile money adoption and usage and digital consumer protection. Research limitations/implications The study used partial least square (PLS-SEM) combined with bootstrap confidence intervals through a formative approach to establish the mediating effect of the mediator variable. Hence, it ignored the use of covariance-based SEM and the MedGraph programme. Furthermore, data were collected from samples located in Gulu district, northern Uganda and specifically from MSMEs. This limits generalization of the study findings to other population who also use mobile money services. Practical implications Promoters of digital financial services, managers of telecommunication companies, and financial inclusion advocates should consider strengthening the existing digital consumer protection laws on the mobile money platform. A collaborative approach between the mobile network operators, financial institutions and regulators should tighten the existing laws against mobile money fraudsters and an efficient mechanism for recourse, compensation and remedy should be set up to benefit the victims of frauds and cybercrime on the Fintech ecosystem. Originality/value The current study gives a useful insight into the critical mediating role of digital consumer protection as a cushion for promoting financial inclusion through mobile phones over the Fintech that face great threat and risk from cyber insecurity.

Financial self-efficacy: a determinant of financial inclusion

2017 ◽  
Vol 35 (3) ◽  
pp. 338-353 ◽  
Author(s):  
Rachel Mindra ◽  
Musa Moya ◽  
Linda Tia Zuze ◽  
Odongo Kodongo
Keyword(s):  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Service Providers ◽  
Financial Service ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the relationship between financial self-efficacy (FSE) and financial inclusion (FI) among individual financial consumers in Uganda. Design/methodology/approach Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. SPSS and AMOS™ 21, regression analysis and structural equation models were used to establish the hypothesized relationship between FSE and FI. Findings The results suggest a strong positive and significant relationship between FSE and FI. The results further suggest that other variables which were controlled for, such as age and gender, had significant influence on an individual’s usage of formal financial services. Research limitations/implications The study was assessed using both potential and actual consumers of financial services collectively. However, if separately assessed, possibly there would be a variation in behavioral responses toward FI. Practical implications Formal financial service providers need to enhance individuals’ levels of confidence in management of finances and utilization of formal financial products and services, so that the financial consumers can realize the changes in financial behavior and consequently FI. Social implications The enhancement of individuals’ level of confidence in evaluating the available financial service options will guide them to take financial decisions that will improve their livelihood. Originality/value The results contribute toward the limited empirical and theoretical evidence for FSE and FI from a behavioral demand-side perspective.

scholarly journals An Empirical Analysis of the Impact of Agency Banking on Financial Inclusion in Benue State, Nigeria: Implications for Economic Activities

2022 ◽  
Vol 14 (2) ◽  
pp. 75
Author(s):  
David Terfa Akighir ◽  
Tyagher Margaret ◽  
Jacob Terungwa Tyagher ◽  
Tordue Emmanuel Kpoghul
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Survey Design ◽  
Secondary Data ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
The Impact

Twelve (12) out of the Twenty-three (23) local government areas (LGAs) in Benue State do not have the presence of banks over a long period of time. This situation has deprived the inhabitants of these LGAs of access to formal financial services until the advent of agency banking. This study therefore, investigates the impact of agency banking on financial inclusion and economic activities in Benue State focusing on the agency banking activities of First Bank Ltd. The study is anchored on the agency theory and it used a survey design. The study has utilized both primary and secondary data that were analyzed using descriptive statistical tools and structural equation models. Findings of the study have revealed that agency banking activities of First Bank Ltd have immensely enhanced financial inclusion and economic activities in Benue State. However, challenges such as shortages of cash, security problems, network failures, and lack of financial literacy are militating against the smooth operations of the agency banking in the State. On the basis of these findings, the study has recommended among others that, other banks operating in the State should be encouraged to venture into agency banking in the state so as to have a wider coverage of agency banking in the State. Also, government should provide security and partner with the private sector to provide national carrier communication network system to overcome the network failure challenge. Finally, banks should intensify efforts to educate the masses about the validity and potency of agency banking.

The mediating effect of self-efficacy on the relationship between moral judgement, empathy and social opportunity recognition in South Africa

2019 ◽  
Vol 26 (2) ◽  
pp. 349-372
Author(s):  
Boris Urban ◽  
Jabulile Galawe
Keyword(s):  
South Africa ◽  
Self Efficacy ◽  
Emerging Market ◽  
Opportunity Recognition ◽  
Moral Judgement ◽  
Mediating Effect ◽  
Social Entrepreneurs ◽  
Mediation Effects ◽  
Content Type ◽  
The Relationship

Purpose Scholars researching entrepreneurship argue that the distinct characteristics of social entrepreneurs, together with the particular category of opportunities they pursue, invite us to further understand social entrepreneurship (SE) as a distinct field of investigation. The purpose of this paper is to investigate opportunity recognition behaviour of social entrepreneurs and closely related unique attributes of empathy, moral judgement (MRJ) and self-efficacy, in an emerging market African context. Design/methodology/approach A survey was administered to social entrepreneurs across two of the largest provinces in South Africa, namely Cape Town and Gauteng. Hypotheses were statistically tested using correlational analysis and hierarchical regression with mediation effects. Findings Results reveal that social entrepreneurial self-efficacy (ESE) plays a significant mediating effect in the relationship between MRJ and social opportunity recognition. Moreover, perceived MRJ and social ESE act as important determinants of increased social opportunity recognition. Originality/value This study has brought to attention the relevance of opportunity recognition to social entrepreneurs, while recognising their distinctive features in terms of empathy and MRJ. While self-efficacy and opportunity recognition are relatively well established in the traditional entrepreneurship literature, this study extends the reach of these variables into the SE domain.

Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1257-1277
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Developing Countries ◽  
Social Network ◽  
Research Design ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Content Type ◽  
The Poor ◽  
The Relationship

PurposeThe main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.Design/methodology/approachThe study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.FindingsThe results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.Research limitations/implicationsThis study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.Practical implicationsThe advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.Originality/valueThis paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.

The effect of financial literacy and gender on retirement planning among young adults

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osvaldo García Mata
Keyword(s):  
Young Adults ◽  
Financial Literacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Retirement Planning ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Moderator Variable ◽  
Content Type ◽  
And Gender

PurposeThe purpose of this paper is to analyze financial literacy's effect on retirement planning among young adults in Mexico, with gender as a moderator variable. Planning refers to the actual or intended implementation of several retirement strategies: private pension funds, investing in assets, government subsidies and family assistance.Design/methodology/approachThe article's methodology is quantitative, empirical and cross-sectional. Ajzen's theory of planned behavior (1991) works as the theoretical framework to examine planning for retirement intentions determined by individuals' financial inclusion, attitudes, knowledge, behavior, occupation and family traits. The methodology follows generalized structural equation models (GSEM) with logistic regression basis, constructed with data from the National Survey on Financial Inclusion 2018.FindingsResults confirm that the most financially knowledgeable individuals have lesser intentions to pursue passive strategies, while financial behavior and inclusion associate with actively planning. Gender plays a fundamental role in retirement planning too.Research limitations/implicationsObservations for several years are necessary to effectuate longitudinal analysis. Further research should include a more in-depth study of strategy choice triggers and policy impact on retirement planning.Social implicationsFindings can be useful to public and private institutions focused on saving, investment and retirement, especially in economies comparable to Mexico's. Avoiding the higher social costs associated with poor retirement planning depends on timely decision-making.Originality/valueThis study goes beyond the traditional pension fund strategy to analyze other options. It delivers information about young people's long-term financial plans in Mexico concerning financial literacy and gender.

Reimaging the mobile money ecosystem and financial inclusion of MSMEs in Uganda: Hedonic motivation as mediator

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Francis Yosa ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Financial Services ◽  
Mobile Telephone ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Future Research ◽  
Content Type ◽  
Mobile Money ◽  
Measurement Models ◽  
User Friendly ◽  
The Relationship

PurposeMobile money is a service in which the mobile phone is used to access financial services. Thus, the mobile money platform should be user-friendly with hedonic features that are attractive and pleasurable to the users. The main purpose of this paper is to establish the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion of micro small and medium enterprises (MSMEs) in Uganda.Design/methodology/approachThis study reports interesting findings by using data obtained from MSMEs located in northern Uganda. The structural equation and measurement models were generated in analysis of moment structures (AMOS) to answer the hypotheses of this study.FindingsThe findings suggest that including hedonism in the model improves mobile money adoption and usage by 12.7 percentage points in order to promote financial inclusion of MSMEs in Uganda. Hedonism is found to affect mobile money adoption and usage, which in turn influences financial inclusion.Research limitations/implicationsThis study used cross-sectional data to document the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion. The study analyzed mobile money adoption and usage, hedonism, and financial inclusion from the MSMEs owners' perspective. Future research could use relevant longitudinal data to verify multiple benefits of hedonism in enhancing mobile money adoption and usage as well as other potential digital financial technologies.Practical implicationsThis study categorically informs mobile telephone network operators and inventors of mobile money applications to invest more in developing pleasurable and user-friendly mobile money features that can attract more users. The digital financial services' application developers should design user-friendly mobile money applications that suit the needs of all users. This requires careful understanding of diverse attractive features of mobile money services.Originality/valueThis study offers direction to developers of mobile money applications to design pleasurable and user-friendly mobile money platform with features, which are attractive to the different users. Particularly, it highlights the role of hedonic motivation in promoting adoption and use of mobile money technology to increase the scope of financial inclusion of MSMEs in a developing country like Uganda. Indeed, the novelty in this paper is grounded on a blend of financial technology and psychology to promote financial inclusion in under developed economies.

Institutional framing and financial inclusion

2017 ◽  
Vol 44 (12) ◽  
pp. 1727-1744 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
John C. Munene
Keyword(s):  
Financial Literacy ◽  
Cognitive Abilities ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Literacy Programs ◽  
Research Approach ◽  
Cross Sectional ◽  
Content Type ◽  
Poor Households ◽  
The Relationship

Purpose The purpose of this paper is to establish the mediating effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households in Uganda with a specific focus on Mokono district. Design/methodology/approach The study adopted a cross-sectional design. Data were analyzed using structural equation modeling (SEM), which adopted Analysis of Moment Structures to test for mediating effect of financial literacy in the relationship between institutional framing and financial inclusion. Findings The results revealed that financial literacy had a partial mediating effect in the relationship between institutional framing and financial inclusion. Furthermore, the results indicated that while institutional framing has a direct effect on financial inclusion, it also exerts an indirect effect through financial literacy. This supports the argument that institutional framing that structure the way how poor households interpret, evaluate, comprehend and make sound financial decisions and choices, is enhanced by knowledge and skills acquired through financial literacy by poor households. Research limitations/implications This study has been limited by adopting only cross-sectional design and quantitative research approach, therefore ignoring longitudinal design and qualitative research approach. Besides, the study uses SEM bootstrap approach and ignores MedGraph method, which is also recommended for testing mediation. Practical implications Since the results suggest that institutional framing of poor households are partially enhanced by financial literacy to increase financial inclusion, policy makers, practitioners and managers of financial institutions should ensure extending financial literacy programs closer to the poor in order to expand the scope of financial inclusion beyond the current sphere. Indeed, financial literacy programs will boost cognitive abilities of poor households resulting into better financial decisions and choices and, hence increase in demand and consumption of financial services. Originality/value The study significantly generates empirical evidence by testing the mediating role of financial literacy in the relationship between institutional framing and financial inclusion using SEM bootstrap approach. The study portrays the influential partial effect of financial literacy in enhancing institutional frames of poor households in order to cause improvement in financial inclusion. Indeed, financial literacy programs that entail acquisition of financial knowledge and skills boost cognitive abilities of poor households to easily interpret, evaluate, comprehend meanings, and take correct decisions and actions on financial matters. The mediating effect of financial literacy in the relationship between institutional framing and financial inclusion seems to be lacking in literature and theory. Thus, the paper is the first to relate the influential partial effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households, especially in a developing country context.

Unravelling the nexus between creative self-efficacy, humble leadership, innovative work behaviour and job performance amongst physicians in public hospitals

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joather Al Wali ◽  
Rajendran Muthuveloo ◽  
Ai Ping Teoh
Keyword(s):  
Self Efficacy ◽  
Structural Equation ◽  
Public Hospitals ◽  
Content Type ◽  
Mediating Role ◽  
Innovative Work ◽  
Innovative Work Behaviour ◽  
Creative Self ◽  
The Relationship ◽  
Humble Leadership

PurposeThe study aims to examine the relationship between innovative work behaviour (IWB) and JP amongst physicians in Iraq public hospitals. The study also determines the effects of creative self-efficacy (CSE) and humble leadership (HL) on IWB. Besides, the study investigates the mediating role of IWB on the relationship between CSE and JP as well as between HL and JP.Design/methodology/approachA total of 332 respondents participated in the survey, although 173 responses were utilised after data screening. The study employs the structural equation modelling via partial least squares (PLS-SEM) to ascertain the relationship between the variables.FindingsEvidence from the study indicates that IWB has a positive relationship with JP, whilst CSE and HL are significant determinants of IWB amongst physicians in Iraq public hospitals. The study provides evidence that IWB plays a positive mediating role in the relationship between CSE and JP as well as between HL and JP amongst physicians in Iraq public hospitals.Originality/valueThe study implies that the JP of physicians in Iraq public hospitals can be enhanced by IWB, whilst the latter can be improved by CSE and HL. The influences of CSE and HL on JP can be boosted by IWB. Hence, efforts to promote IWB should be vigorously pursued by Iraq public hospitals to foster the physicians' JP.

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