Financial inclusion and socioeconomic development: gaps and solution

2018 ◽  
Vol 45 (7) ◽  
pp. 1122-1140 ◽  
Author(s):  
Shailesh Rastogi ◽  
Ragabiruntha E.
Keyword(s):  
Factor Analysis ◽  
Rural Areas ◽  
Urban Areas ◽  
Tamil Nadu ◽  
Structural Model ◽  
Reliability And Validity ◽  
Financial Inclusion ◽  
Degree Of Freedom ◽  
Primary Data ◽  
Content Type

Purpose The purpose of this paper is to identify factors relevant for financial inclusion (FI) and establish a model that shows how these factors lead to economic development (ED) through FI. Design/methodology/approach Primary data were collected through structured questionnaire. Out of 350, 311 respondents accurately filled the questionnaire. The data were collected from rural areas of Tamil Nadu. Exploratory factor analysis has been applied to evaluate drivers/factors relevant for FI. Confirmatory factor analysis has been applied to establish reliability and validity of the identified factors. A structural model has been proposed and empirically tested for ED through FI. Findings The main findings of the current paper are as follows: online banking (OB), understanding banking services (UBS) and financial literacy (FL) are the drivers of FI; FI can lead to ED, as the proposed model of ED, through FI, is supported in the paper (χ2/degree of freedom and CMIN/degree of freedom are less than 3; GFI and AGFI are more than 0.90 and 0.85, respectively). Behavior of the people, with respect to mode of financial transactions, has changed due to demonetization. (The χ2 test for mode of financial transaction is significant). Research limitations/implications The geographical reach of the sample should cover the whole India. The sample should also have equal representation from rural and urban areas. Practical implications The identified factors for FI (OB, UBS and FL) should be more focused to bring about better results for FI in India. These factors can lead to a more effective execution of FI initiatives. In addition to this, policy makers can be confident of relying upon FI as a tool for ED. Originality/value The identified three drivers for FI have not been explored earlier. In addition to this, ED (through FI) in the form of structural model has also not been tested earlier. Government of India can realign their policies toward FI by using findings of this paper. In addition to increasing the access of formal financial system to masses, more thrust can be given to OB and FL for better results of FI in India.

Islamic bank selection criteria in Nigeria: a model development

2019 ◽  
Vol 11 (6) ◽  
pp. 1837-1849
Author(s):  
Precious Chikezie Ezeh ◽  
Anayo D. Nkamnebe
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Selection Criteria ◽  
Model Development ◽  
Reliability And Validity ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Ethics ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to develop a model for the study of Islamic bank choice and to test the significant importance of the constructs that influence bank customers to choose Islamic bank in a pluralistic-secular nation. Design/methodology/approach Total of 348 conventional and Islamic bank customers were sampled. Five-point Likert-type question containing 27 bank selection items was used in collecting primary data. Cronbach’s alpha, composite reliability and average variance extracted are used to test the reliability and validity of the instrument. Also various descriptive statistics, exploratory factor analysis and one sample T-test are equally used in analyzing the work. Findings Exploratory factor analysis identified four factors. They are Islamic ethics, convenience, Islamic bank services awareness and physical evidence. Furthermore, the factors that show significant importance in the choice of Islamic banking are Islamic ethics and Islamic bank services awareness. The result equally shows that people are aware of Islamic banking. Practical implications This study provides insight on the factors that influence the selection of Islamic banking, an innovative banking concept. This study has obvious management and theory implications. Also, the study will assist the bank managers in developing effective marketing strategy to increase the market share. Originality/value This study reports Islamic banking selection criteria in a pluralistic-secular Nation. The study also developed a model that can be used in studying the choice of Islamic bank in special type of environment. Thus, Islamic banking is a new reality in the Nigerian financial scene.

scholarly journals Status and Challenges of Financial Inclusion: An Evidence from Rural Gujarat

2019 ◽  
Vol 1 (5) ◽  
Author(s):  
Jeniskumar Chauhan ◽  
Yogesh C. Joshi
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Urban Areas ◽  
Policy Formulation ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Current Status ◽  
Primary Data ◽  
Bottom Of The Pyramid ◽  
Programme Implementation

The benefits of economic development must reach to the bottom of the pyramid population. Therefore, it is imperative that population in rural areas is brought in the formal financial system in an economy like India. People whose living in rural or semi urban areas are deprived and underprivileged to get necessary formal financial products and services almost in all developing countries like India. Those living in rural areas still find it difficult to avail appropriate financial services in time, which act as an impediment in their effort to lead a healthy and better life. In any part of country supplying financial services to this vast and underprivileged segment of society is a challenging task. The paper is an attempt to study status of challenges of financial inclusion in selected rural areas of Gujarat. This study is intended to analyze current status of demand and supply side barriers of financial inclusion in selected rural areas of Gujarat state. The efforts for financial inclusion, through policy formulation and programme implementation will be studied and an attempt will be made to identify challenges in promoting financial inclusion in rural areas of Gujarat. The study will be based on primary data, Secondary data have also been used to substantiate results and identify government efforts in financial inclusion. Collected data have been analyzed using frequency analysis, percentage and use of SPSS. The conclusion will be used to suggest policy implications as well.

Measuring impact of financial inclusion on rural development through cooperatives

2019 ◽  
Vol 46 (3) ◽  
pp. 352-376
Author(s):  
Tarsem Lal
Keyword(s):  
Factor Analysis ◽  
Rural Development ◽  
Structural Equation ◽  
Financial Inclusion ◽  
Inclusive Development ◽  
Primary Data ◽  
Inclusive Growth ◽  
Content Type ◽  
Depth Analysis ◽  
The Impact

PurposeThe purpose of this paper is to measure the impact of financial inclusion on rural development through cooperatives.Design/methodology/approachThe primary data were collected from 540 beneficiaries of Cooperatives banks operating in three northern states of India, i.e., J&K, Himachal Pradesh and Punjab using purposive sampling during January to June 2016. Exploratory factor analysis, confirmatory factor analysis, ANOVA,t-test and structural equation modelling were used for scale purification and data analysis.FindingsThe findings of the study revealed that financial inclusion through cooperatives has direct and significant impact on rural development. Further, the results support the notion that financial inclusion is a strategy of inclusive growth, but inclusive growth itself is a subset of a larger set of inclusive development which means that the benefit must reach the all, particularly the women and the children, minority groups, the extremely poor and those pushed below the poverty line by natural and human-made disasters.Research limitations/implicationsThe research has certain inescapable limitations. First, the in-depth analysis of the study is restricted to three northern states of India only because of time and resource constraints. Second, the study is confined to the perception of financial inclusion beneficiaries only, which in future could be carried further on the perception of other stakeholders such as SHGs, banking correspondents, etc. Third, possibility of subjective interpretation in some cases cannot be ruled out.Originality/valueThe study makes contribution towards financial inclusion literature relating to sustainable rural development and fulfils the research gap to some extent by assessing the impact of financial inclusion on rural development through cooperatives.

Exploring demand-side barriers to credit uptake and financial inclusion

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anshu Singh
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Structural Equation ◽  
Financial Inclusion ◽  
Primary Data ◽  
Full Potential ◽  
Bottom Of The Pyramid ◽  
Demand Side ◽  
Content Type ◽  
Targeted Interventions

PurposeThe purpose of this study is to explore the demand side factors affecting financial inclusion in general and credit uptake in particular.Design/methodology/approachThe present study is descriptive and exploratory in nature and is purely based on primary data. The data collection instrument has been scientifically after thorough review of literature and seeking expert opinion. Primary data have been collected from the respondents of lower socioeconomic class in selected rural areas in the State of Maharashtra, India. Exploratory technique like factor analysis and structural equation modelling have been used to identify the inter-relations between financial inclusion and underlying barriers.FindingsThe study concludes that there are major latent issues that determine the uptake and usage of financial services, major being “operational and implementation challenges”, “financial literacy” and “affordability”. The “usage” aspect further impacts financial inclusion along with “access” variable. These are some of the most important factor for creating demand-driven approach towards financial products and services specially credit. The author concludes that the identified latent barriers with respect to the “usage” dimension of financial inclusion require greater policy attention so that it can complement the supply-side measures.Practical implicationsThe study establishes that merely having “access” through bank account ownership will not fulfil the objective of financial inclusion, and it is the “usage”, which is also important to realize the full potential of financial inclusion at the bottom of the pyramid. So, policy actions should be directed toward enhancing the “usage” aspect of financial services. The “usage” dimension could be enhanced through targeted interventions to mitigate the effect of identified latent barriers.Originality/valueThough researchers have made a mention of demand-side barriers to financial inclusion, detailed study on the topic is missing. The study is one of its kinds in exploring the severity of various demand-side barriers that determine financial inclusion. In the context of emerging economies like India, financial inclusion is often measured in terms of banking outreach and “access”. There are limited studies capturing the “usage” dimension of financial inclusion.

Impact of Elected Women Representatives of Panchayati Raj in Physical and Financial and Business Assets Development of Rural Women: A Study among the Rural Women’s of Tiruvannamalai District, Tamil Nadu[1]

2017 ◽  
Vol 4 (24) ◽  
Author(s):  
Kalaichelvi Sivaraman ◽  
Rengasamy Stalin
Keyword(s):  
Rural Women ◽  
Rural Areas ◽  
Urban Areas ◽  
Direct Democracy ◽  
Tamil Nadu ◽  
Local Level ◽  
Rural And Urban Areas ◽  
The Government ◽  
The Impact ◽  
Panchayati Raj

This research paper is the part of Research Project entitled “Impact of Elected Women Representatives in the Life and Livelihood of the Women in Rural Areas: With Special Reference to Tiruvannamalai District, Tamil Nadu” funded by University of Madras under UGC-UPE Scheme.The 73rd and 74th amendments of the Constitution of India were made by the government to strengthen the position of women and to create a local-level legal foundation for direct democracy for women in both rural and urban areas. The representation for women in local bodies through reservation policies amendment in Constitution of India has stimulated the political participation of women in rural areas. However, when it’s comes to the argument of whether the women reservation in Panchayati Raj helps or benefits to the life and livelihood development of women as a group? The answer is hypothetical because the studies related to the impact of women representatives of Panchayati Raj in the life and livelihood development of women was very less. Therefore, to fill the gap in existing literature, the present study was conducted among the rural women of Tiruvannamalai district to assess the impact of elected women representatives in the physical and financial and business development of the women in rural areas. The findings revealed that during the last five years because of the women representation in their village Panjayati Raj, the Physical Asset of the rural women were increased or developed moderately (55.8%) and Highly (23.4%) and the Financial and Business Asset of the rural women were increased or developed moderately (60.4%) and Highly (18.7%).

Loan officer rotation and credit access: evidence from Madagascar

2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Frequency Effect ◽  
Content Type ◽  
Credit Access ◽  
Loan Officer ◽  
Microfinance Institution ◽  
Lending Decisions ◽  
Loan Officers ◽  
Loan Approval

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.

A principal component analysis of the determinants of spatial disparity between rural and urban localities of Ghana

2017 ◽  
Vol 44 (6) ◽  
pp. 715-731 ◽  
Author(s):  
Ivy Drafor
Keyword(s):  
Principal Component Analysis ◽  
Rural Areas ◽  
Urban Areas ◽  
Principal Component ◽  
Component Analysis ◽  
Spatial Inequality ◽  
Necessary Condition ◽  
Spatial Disparity ◽  
Content Type ◽  
Rural And Urban

Purpose The purpose of this paper is to analyse the spatial disparity between rural and urban areas in Ghana using the Ghana Living Standards Survey’s (GLSS) rounds 5 and 6 data to advance the assertion that an endowed rural sector is necessary to promote agricultural development in Ghana. This analysis helps us to know the factors that contribute to the depravity of the rural sectors to inform policy towards development targeting. Design/methodology/approach A multivariate principal component analysis (PCA) and hierarchical cluster analysis were applied to data from the GLSS-5 and GLSS-6 to determine the characteristics of the rural-urban divide in Ghana. Findings The findings reveal that the rural poor also spend 60.3 per cent of their income on food, while the urban dwellers spend 49 per cent, which is an indication of food production capacity. They have low access to information technology facilities, have larger household sizes and lower levels of education. Rural areas depend a lot on firewood for cooking and use solar/dry cell energies and kerosene for lighting which have implications for conserving the environment. Practical implications Developing the rural areas to strengthen agricultural growth and productivity is a necessary condition for eliminating spatial disparities and promoting overall economic development in Ghana. Addressing rural deprivation is important for conserving the environment due to its increased use of fuelwood for cooking. Absence of alternatives to the use of fuelwood weakens the efforts to reduce deforestation. Originality/value The application of PCA to show the factors that contribute to spatial inequality in Ghana using the GLSS-5 and GLSS-6 data is unique. The study provides insights into redefining the framework for national poverty reduction efforts.

Financial inclusion through Kiosk-based banking services: a study with reference to business correspondent models in the state of Kerala

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammed Shafi M.K ◽  
M. Ravindar Reddy
Keyword(s):  
Factor Analysis ◽  
Missing Values ◽  
Discriminant Validity ◽  
The State ◽  
Financial Inclusion ◽  
Equation Modeling ◽  
Banking Services ◽  
Content Type ◽  
Shared Variance ◽  
Validity Tests

PurposeThe paper aims to study the outreach and performance of business correspondent (BC) models, which are implemented as a subsidiary agent of banks to accelerate the financial inclusion (FI) mission in India. In this regard, the study illustrates BC's products and services rendered to customers, forms of delivery channels and BC's view on banking services and Kiosk-based BC programs.Design/methodology/approachThe current paper is an empirical study based on surveying 200 Kiosk-based BCs working in the state of Kerala. After the preliminary screening analysis of the data with outlier deletion, removal of missing values and normality test, both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were executed followed by reliability test, convergent and discriminant validity tests. Covariance-based structural equation modeling (CBSEM) was performed for CFA and inferential tests were carried out by using statistical package for the social sciences (SPSS) and analysis of a moment structures (AMOS) and Eviews.FindingsChiefly, eight operational forms of BCs were found from the field survey. Hypothetical tests show the significant impact of the serviceability of banks on BC's profitability. Validity tests such as average variance extracted (AVE), composite reliability (CR), maximum shared variance (MSV) and average shared variance (ASV) were established after the removal of the cross-loaded items of the questionnaire from the rotated component matrix. BCs perform main banking services especially bank account opening facility and Akshaya E-Centers are widely used for this model as Kiosk banking in the surveyed state.Originality/valueSo far, no study has encompassed empirical research on performance analysis and outreach of the BC model in the state of Kerala where this BC model well functions. Since the study is a novel form of banking channelization for FI, the study can contribute to understanding the further feasibility and future dimension of the model based on experimental views of BCs.

Menstrual knowledge and perceptions of schoolgirls in Bangladesh: do socio-economic factors really matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gulsan Ara Parvin ◽  
Nina Takashino ◽  
Md. Shahidul Islam ◽  
Md. Habibur Rahman ◽  
Md. Anwarul Abedin ◽  
...  
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Family Income ◽  
Policy Formulation ◽  
Economic Factors ◽  
Content Type ◽  
Logistic Regression Models ◽  
Professional Occupation ◽  
Menstrual Knowledge ◽  
Socio Economic Factors

Purpose This study aims to explore whether socio-economic factors determine the level of menstrual knowledge and perceptions of schoolgirls in Bangladesh. The aim of this study is to understand how knowledge and perceptions vary with variations in the different socio-economic factors in a schoolgirl’s life such as place of residence, religion, age, grade, parents’ education, parents’ occupation, family income and even family size. Design/methodology/approach Data were collected from four schools (two in urban areas and two in rural areas). A total of 450 schoolgirls from grades V–X were interviewed to examine how knowledge and perceptions varied with different socio-economic aspects. Multiple logistic regression models were used to measure the associations between various socio-economic variables and perceptions of and knowledge about menstruation. Findings Respondents from urban areas were 4.75 times more likely and those 14–16 years old were two times more likely to report higher levels of knowledge about menstruation compared to their counterparts. Based on the father’s occupation, respondents whose father was engaged in a professional occupation were 1.983 times more likely to have a higher level of knowledge on menstruation compared to those whose fathers were in an unskilled profession. Similarly, the odds of positive perceptions on menstruation were 1.456 and 1.987 times higher, respectively, among respondents living in urban areas and those 14–16 years old, compared to their counterparts. Originality/value This study provides evidence that different socio-economic and even demographic factors are important in the development of menstrual knowledge and perceptions. Policy formulation and development actions related to adolescent girls’ physical and reproductive health development need to consider these factors in Bangladesh and in other developing countries, where poor knowledge and perception related to menstruation are hindering girls’ mental and physical development. This is expected that better knowledge and perception will facilitate girls’ right to have better health and social lives.

scholarly journals Risk factor assessment and screening for diabetes in field practice area of a private medical college in Thiruvallur district of Tamil Nadu

2017 ◽  
Vol 4 (8) ◽  
pp. 2670 ◽  
Author(s):  
Sathish Dev ◽  
Timsi Jain ◽  
Sivaprakasam P. ◽  
Dinesh Raja
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Tamil Nadu ◽  
Univariate Analysis ◽  
The Elderly ◽  
World Health ◽  
Chi Square ◽  
Medical College ◽  
Diabetes Status ◽  
Field Practice

Background: Diabetes, which was known to be an epidemic in the urban areas, has been found to be increasing rapidly in the rural areas too as a result of the socioeconomic transitions. Diabetes is no longer only a disease of the elderly but is one of the major causes of morbidity and mortality affecting youth and middle aged people.Methods: Screening camp for diabetes was conducted by the Department of Community Medicine in three different areas in the field practice area of Saveetha Medical College and Hospital viz. Thirumazhisai, Kuthambakkam and Velavedu in Thiruvallur district of Tamil Nadu on 7th April 2016 as a part of World Health Day 2016 celebration. Data was collected using a predesigned interview schedule. Descriptive statistics was calculated using rates, ratios & proportions. Univariate analysis was done using Chi square test to find the association between various factors and diabetes status. A parsimonious regression model was developed to find the predictor variables for diabetes.Results: A total of 188 people aged above 18 years attended the screening camps. Majority of the camp attendees were females (62.2%). Proportion of people having diabetes (already diagnosed plus newly screened) was found to be 18.1% out of which 3.2% were screened positive for diabetes. On regression analysis, Intake of alcohol and perceived stress were found to be significantly associated with diabetes (p<0.05).Conclusions: This study highlights a significant burden of undiagnosed cases of diabetes in the community. This indicates the need for systematic screening and awareness programs to identify the undiagnosed cases in the community and offer early life style modifications, treatment and regular follow up to such individuals.

Sign in / Sign up

Export Citation Format

Share Document