Customer perception of adoption and use of digital financial services and mobile money services in Uganda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tapiwanashe James Museba ◽  
Edmore Ranganai ◽  
Gianfranco Gianfrate
Keyword(s):  
Qualitative Research ◽  
Financial Services ◽  
Social Impact ◽  
Positive Impact ◽  
Financial Inclusion ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Customer Perception ◽  
Mobile Money ◽  
The Impact

Purpose This paper aims to investigate the impact of fintech, mobile money and digital financial services in Uganda and factors impacting adoption of the services. The study will also determine their social impact through financial inclusion in the Ugandan market. Design/methodology/approach This study covers the adoption and use of fintech, mobile money and digital financial services in Uganda. A case study approach was used through a survey questionnaire for 400 randomly selected participants within the Kampala region. Questionnaire was designed to measure customer perception of digital financial services and adoption including mobile money and agency banking. Findings The adoption of mobile money services is driven by mobile devices penetration and the need for access to financial products and services for the unbanked. Results support CGAP (2013) that observed that mobile money adoption was based on two key variables: social network and social interactions of the customer and a segment of customers who can be described as mobile technology leaders (early adopters). There has been positive impact on person to person transfers, grocery payments and mobile money providers have to continue to simplify the access to financial services and bring convenience to the bottom of the pyramid. And mobile money positively impacts sustainable developmental goals covering Gender Equality (SDG5), SDG 8 – Decent Work and Economic Growth; expanding financial inclusion through mobile money and SDG 10 – Reduce Inequalities. Research limitations/implications This study has limitations commonly prevalent with qualitative research, including the small size limited to Kampala and challenges of making generalisations beyond this context. Practical implications The paper might serve as a valuable source of information for government and fintech companies in developing the digital financial services ecosystem as well as for students and academics for further case studies in this area. Originality/value This paper serves as one of the first qualitative research papers concerning mobile money and digital financial services adoption, solely focused on Uganda. Its value is in its showcasing of the importance of mobile money among customers in emerging markets.

Impact of financial inclusion on poverty alleviation through cooperative banks

2018 ◽  
Vol 45 (5) ◽  
pp. 808-828 ◽  
Author(s):  
Tarsem Lal
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Positive Impact ◽  
Financial Inclusion ◽  
Primary Data ◽  
Content Type ◽  
Study Results ◽  
Depth Analysis ◽  
Cooperative Banks ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of financial inclusion on poverty alleviation through cooperative banks. Design/methodology/approach In order to fulfil the objectives of the study, primary data were collected from 540 beneficiaries of cooperative banks operating in three northern states of India, i.e., J&K, Himachal Pradesh (HP) and Punjab using purposive sampling during July-December 2015. The technique of factor analysis had been used for summarisation of the total data into minimum factors. For checking the validity and reliability of the data, the second-order CFA was performed. Statistical techniques like one-way ANOVA, t-test and SEM were used for data analysis. Findings The study results reveal that financial inclusion through cooperative banks has a direct and significant impact on poverty alleviation. The study highlights that access to basic financial services such as savings, loans, insurance, credit, etc., through financial inclusion has generated a positive impact on the lives of the poor and help them to come out of the clutches of poverty. Research limitations/implications The study was conducted amidst few limitations. First, the in-depth analysis of the study is restricted to three northern states only because of limited resources and time availability. Second, the study is limited to the perception of financial inclusion beneficiaries only, which, in future, could be carried further on the perception of other stakeholders such as bank officials, business correspondents, village panchayats, etc. Originality/value The study makes contribution towards the financial inclusion literature relating to poverty alleviation and fulfils the research gap to some extent by assessing the impact of financial inclusion on poverty alleviation through cooperative banks. This paper can help the policymakers and other stakeholders of cooperative banks in promoting banking habits among poor rural households both at the national and international level.

Systematized literature review on financial inclusion and exclusion in developed countries

2019 ◽  
Vol 38 (3) ◽  
pp. 600-626 ◽  
Author(s):  
Beatriz Fernández-Olit ◽  
José María Martín Martín ◽  
Eva Porras González
Keyword(s):  
Literature Review ◽  
Financial Services ◽  
Meta Analysis ◽  
Developed Countries ◽  
The Body ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Theoretical Frameworks ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to provide a systematic literature review of the research published on financial inclusion (FI) and financial exclusion (FE) in developed countries using key terms and strict inclusion and exclusion criteria. Design/methodology/approach In total, 52 papers were deemed to be relevant to the analysis. These works were critiqued using a framework that addressed geographical contexts, topics, methodologies and theoretical frameworks. Findings This review highlights the uneven level of development of the academic debate between North America, the UK and continental Europe, and identifies the different theoretical frameworks that construe the body of literature in each region. In addition, the findings show the scant offer of work on the impact that the digital economy has on FE, as well as the reduced number of studies which have focused on certain vulnerable groups and the access to some financial services. Social implications The studies reviewed have not analyzed the specific needs of vulnerable groups while considering the different contexts and pathways to exclusion. The evaluation of solutions and strategies to achieve inclusion is one of the least addressed aspects in the literature. Originality/value The paper synthesizes the main contributions of the top literature on the redefinition of FI/FE in developed countries, the role of fringe services and new determinants of exclusion. The proliferation of studies regarding FI in low- and middle-income countries has generated a great amount of meta-analysis and systematized reviews of asymmetric results. However, no systematized literature review on the broad scope of FI/FE in developed countries has been published in the last decade. This work sheds light over poorly analyzed areas of research that refer to notable social problems.

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.

Understanding the link between government cashless policy, digital financial services and socio-demographic characteristics in the MENA countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amari Mouna ◽  
Anis Jarboui
Keyword(s):  
Technology Adoption ◽  
Financial Services ◽  
Demographic Characteristics ◽  
Financial Inclusion ◽  
Mena Region ◽  
Content Type ◽  
Mena Countries ◽  
The Government ◽  
The Impact

PurposeTo help inform the debate over whether socio-demographic characteristics are related to the use of digital technologies, the authors investigated the effects of age, gender, education, income and being in the workforce on changes in using financial digital services using panel data collected in the MENA countries during 2017.Design/methodology/approachThis study aims to identify the impact of government policy on the determinants of financial inclusion and digital payment services in the MENA region. The authors use microdata from the 2017 Global Findex database on MENA countries to perform probit estimations. The paper focuses on the role of technology adoption by government authorities in extending financial inclusion and digital payment around different people.FindingsThe authors find that poorer people (and, by association, less educated people) and the young (but less so the elderly) are disproportionately excluded from the financial system. Results confirm that better collaboration between the government and the financial sector can help to develop digital financial inclusion through the technology adoption channels. The study confirms the significant impact of the government cashless policy in advancing financial inclusion in the MENA countries, with potentially wider applicability to other developed economies.Practical implicationsPolicies to advance mobile money innovations could stimulate financial inclusion by promoting digital transaction services. The role of government authorities is imperative to harness the beneficial and sustainable gains from digitizing remittances and transfers to promote a cashless economy.Originality/valueFinancial inclusion promotes equality through a broadening of the system and government cashless policy can be a major catalyst for greater financial inclusion. It helps in the overall economic development of the underprivileged population and contributes to poverty reduction.

Basic research public procurement: the impact on supplier companies

2019 ◽  
Vol 19 (3) ◽  
pp. 224-251 ◽  
Author(s):  
Martina Dal Molin ◽  
Ezio Previtali
Keyword(s):  
Empirical Evidence ◽  
Social Impact ◽  
Positive Impact ◽  
Single Case ◽  
Public Procurement ◽  
Case Study Research ◽  
Basic Research ◽  
Policy Implications ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to estimate and assess the impact of public procurement activities of an Italian basic research center (the National Institute for Nuclear Physics [INFN]) on supplier companies. Design/methodology/approach Starting from the exploratory nature of this research, a single case study research strategy has been applied. The impact of basic research public procurement has been estimated using survey data on 168 INFN supplier companies. Supplier companies have been surveyed on six different categories of company outcomes, namely, sales volume, learning and innovation, relationship with the market, alliances and network and social impact. Findings Results of the analysis reported that the activity of INFN public procurement generates a positive impact on supplier companies on different dimensions, especially related to learning and innovative outcome and economic impact and market penetration outcome. Social implications Policy implications can be derived from the current study. In particular, to support the policymakers in the effort of assessing the impact of basic research public procurement, this study, first highlights the impact dimensions on supplier companies, and second, it provides empirical evidence of public procurement as a viable tool to foster companies’ innovation. Originality/value This research explores a relevant but understudied topic that has recently attracted the attention of policymakers. In fact, although public procurement have been recognized as a tool to foster companies’ innovation, empirical evidence is still scant, particularly in the case of basic research.

scholarly journals Islamic finance: financial inclusion or migration?

2018 ◽  
Vol 10 (2) ◽  
pp. 277-288 ◽  
Author(s):  
Ahmed Tahiri Jouti
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Design Methodology ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Content Type ◽  
The Stability ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to define a methodology to assess the impact of introducing Islamic finance on financial inclusion. Design/methodology/approach The paper is based on a literature review to understand the link between Islamic finance and financial inclusion. The second part of the paper presents a conceptual framework to assess the impact of introducing Islamic finance on financial inclusion in a defined context based on the profiling of people interested in Islamic finance. Findings The paper brings an insight on the impact of introducing Islamic finance. Indeed, it could cause a financial migration to Islamic banks that can take many forms and depends on many factors that call for deep analysis. Research limitations/implications The paper would help financial authorities and financial institutions to measure the impact of introducing Islamic finance on their businesses and the stability of the whole system. Practical implications Islamic finance can not only enhance financial inclusion but also create financial migration. The two implications can vary from one context to another. Social implications Islamic finance can contribute in the effort of including “self-excluded” people with religious concerns as well as people without access to financial services. Originality/value This paper promotes the idea that Islamic finance is not exclusively a way to enhance financial inclusion.

Janalakshmi Financial Services Private Limited: strategic innovation to achieve financial inclusion

2012 ◽  
Vol 2 (8) ◽  
pp. 1-18
Author(s):  
M. Abraham Dolphy ◽  
Mohan Gopinath ◽  
Edwin Castelino
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Financial Services ◽  
Urban Poor ◽  
Financial Inclusion ◽  
Effective Control ◽  
Target Market ◽  
Content Type ◽  
Strategic Innovation ◽  
The Impact

Subject area Strategic innovation through the deployment of a sophisticated collection of information systems and technologies to help accomplish financial inclusion for the urban poor. Study level/applicability This case is suitable for graduate courses on strategic planning and innovation. Case overview Janalakshmi Financial Services (JFS) is a microfinance company that seeks to serve the financial service needs of the urban poor, a market segment with huge growthpotential. This operation involves large numbers of cash transactions making effective control mechanisms necessary. However, small margins make an innovative strategy necessary. JFS states that information technology (IT) is its DNA. The way in which the leadership team used a variety of ITsolutions to create an integrated set of well managed operations provides a very useful lesson in managing the process of strategic innovation. Expected learning outcomes The primary learning objective is to help the student understand the impact of strategic innovation through the use of information systems and technologies. This is achieved by helping the student to: connect the abilities provided by information technology to the social objective of financial inclusion; understand what financial inclusion means to the urban poor and how this segment differs from other microfinance and banking segments; assess the approach (related to organizational design as well as systems) JFS has employed to accomplish the objective of financial inclusion among the urban poor in India; analyse the systems and processes JFS has used to deliver services to its target market while making processes more transparent and efficient at JFS; and assess the risks to which JFS is exposed throughits business activity as well as the use of information technology. Supplementary materials Teaching notes are available; please consult your librarian for access.

scholarly journals Bank concentration and SME financing availability: the impact of promotion of financial inclusion in China

2020 ◽  
Vol 38 (6) ◽  
pp. 1329-1349
Author(s):  
Zhiqiang Lu ◽  
Junjie Wu ◽  
Jia Liu
Keyword(s):  
Positive Impact ◽  
Substitution Effect ◽  
Financial Inclusion ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
The Impact ◽  
The Relationship ◽  
Bank Concentration ◽  
Sme Financing

PurposeThe promotion of financial inclusion can disturb the composition of traditional bank concentration and change the relationship between bank concentration and the availability of small and medium-sized enterprise (SME) financing. This paper concentrates on a less frequently explored area of research by examining the relationships between bank concentration, financial inclusion and SME financing availability respectively, and the interaction between bank concentration and financial inclusion after the implementation of a financial inclusion strategy in China.Design/methodology/approachUsing firm-level data from 1,509 listed SMEs in China from 2007 to 2017 and applying rigorous analyses, we identify how bank concentration affects SME financing availability under the promotion of financial inclusion and also the mechanisms involved.FindingsWe find that bank concentration and financial inclusion respectively have positive impacts on the credit available to listed SMEs, indicating that the promotion of financial inclusion in China has reached a new high watermark. The positive impact of bank concentration is reduced when the level of financial inclusion is high. Conversely, a higher level of financial inclusion favours SME credit availability at only a low degree of bank concentration. Our findings suggest that financial inclusion has a substitution effect on bank concentration and has enabled us to add new interpretations to relevant theories; namely, the Market Power and Information Theories respectively.Originality/valueThis study provides new insights into the relationship between bank concentration and SME finance availability under the promotion of financial inclusion.

SFC’s new guidance note redefines cooperation in disciplinary, civil court and market misconduct tribunal proceedings

2018 ◽  
Vol 19 (3) ◽  
pp. 45-47
Author(s):  
Cynthia Tang ◽  
Bryan Ng ◽  
Gloria Ng
Keyword(s):  
Financial Services ◽  
Positive Impact ◽  
Early Stage ◽  
Active Role ◽  
Current Approach ◽  
Senior Management ◽  
Content Type ◽  
Civil Court ◽  
Guidance Note ◽  
The Impact

Purpose The purpose of this paper is to discuss the new “Guidance Note on Cooperation with the SFC” released by the Hong Kong Securities and Futures Commission (“SFC”) on 12 December 2017, which updates the SFC’s previous guidance note issued in 2006. Design/methodology/approach This paper explains key features to the guidance note, the SFC’s current approach in investigations and enforcement and the impact on regulated parties and senior management. In particular, the authors discuss what cooperation means in disciplinary, civil court and market misconduct tribunal proceedings. Findings The new guidance note confirms that the SFC will play an increasingly active role in investigations and that taking proactive steps at an early stage, including involving senior management, will have a positive impact on the outcome of the investigation. Originality/value Commentary and practical guidance from experienced securities enforcement and financial services regulatory enforcement lawyers.

Does access to finance alleviate poverty? A case study of SGSY beneficiaries in Kashmir Valley

2017 ◽  
Vol 44 (8) ◽  
pp. 1032-1045 ◽  
Author(s):  
Audil Rashid Khaki ◽  
Mohi-ud-Din Sangmi
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Multidimensional Poverty ◽  
Financial Inclusion ◽  
Access To Finance ◽  
Content Type ◽  
Skill Sets ◽  
Multidimensional Poverty Index ◽  
Quasi Experimental ◽  
The Impact

Purpose The purpose of this paper is to question and analyse the basic tenets of financial inclusion and to understand the relationship between access to finance and poverty reduction. The paper attempts to elaborate the importance of unrestrained access to finance in building an inclusive financial sector, which is believed to reduce poverty by enabling poor and excluded people to participate in the economic process by employing their skill sets, labour and innovations in the productive activities of the economy, thereby not only increasing their own welfare and standards of living but also contributing at very high marginal returns to the overall economic growth. Design/methodology/approach This study evaluates the progression of the participants/beneficiaries of National Rural Livelihood Mission Scheme (erstwhile Swarnjayanti Gram Swarozgar Yojana Scheme) across various dimensions of poverty by making use of the Multidimensional Poverty Index (MPI). Findings The results suggest that the participation has in fact lead to increase in the standard of living, thereby reducing multidimensional poverty. Further, the results suggest that participation does not reduce deprivations in the “education” dimension, whereas in all other dimensions reduction in deprivations is significant. The results also suggest that the programme under study seems to be seriously mistargeting by allocating the programme to non-poor sections rather than absolute poor. Research limitations/implications The study has been conducted without following the participants over a longer period of time. The study has adopted a pre-post methodology, collecting the responses at only one point using a reflexive quasi-experimental design which leads to a recall limitation. Originality/value The paper tries to evaluate the impact of access to financial inclusion through a new perspective – the MPI. The paper examines the targeting of government-sponsored programmes and the utility of such intervention in the changing milieu of financial services.

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