scholarly journals The Social Production of Financial Inclusion of Generation Z in Digital Banking Ecosystems

2021 ◽  
Vol 15 (3) ◽  
pp. 95-118
Author(s):  
Diana Kangwa ◽  
Joseph Thokozani Mwale ◽  
Junaid M. Shaikh
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Evolutionary Dynamics ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Social Production ◽  
Bidding Strategies ◽  
Generation Z ◽  
Mental Construct ◽  
Sub Saharan

Digital finance is an emerging frontier of financial sector development in the contemporary 21st century. In spite of the known benefits of digital finance, there is a widely held view that digital financial services have not adequately permeated vast segments of society given the disparities in the availability of finance, its accessibility, and use. Therefore, the evolution of financial technologies along with digital consumer behaviourism in the present age presents scope for re-modelling conventional financial business models to particularly enhance the financial inclusion of Generation Z. This generation presumably has a unique mental construct of digital financial inclusion on account of its financial needs and circumstances, and its intrinsic digital consumer behaviourism. Therefore, this article espouses the Lefebvrean Social Production of Space as a novel theoretical lens through which financial inclusion of Generation Z could be better conceptualised to provide predictive insight for the future development of inclusive digital banking ecosystems. To this end, the article demonstrates, under the Zambian context in sub-Saharan Africa, that Generation Z has the propensity and competence to use digital technologies, but its adoptive response to digital finance is shaped by the perception that conventional banking and finance is highly exclusive. This suggests that the conventional banking ecosystem operates along a continuum between social equity and financial sustainability, posing a conceptual challenge of designing financial business models that are equitable without undermining the sustainability of the ecosystem. It is hereby recommended that for a digital banking ecosystem to be authentically inclusive of Generation Z there must be participatory accountability that considers and embraces the generation’s bidding strategies for financial inclusion, and further facilitates empowerment of this clientele based on the co-evolutionary dynamics of financial technology and digital consumer behaviourism.

Turning on the township: financial inclusion in South Africa

2019 ◽  
Vol 31 (3) ◽  
pp. 420-446
Author(s):  
Louise Whittaker ◽  
Graunt Kruger
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Financial Inclusion ◽  
Subject Position ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Strategic Actions ◽  
Starting Point ◽  
Sub Saharan ◽  
Economic Engagement

Purpose The purpose of this paper is to explore practitioner and academic conceptualisations about what drives individuals (who are the target of financial inclusion efforts) to adopt and use financial services. It compares this with individual’s personal subjectivities to understand how the similarities and differences might contribute to problems in financial inclusion efforts. Design/methodology/approach To uncover such conceptualisations, a Foucauldian discourse analysis of three texts is conducted. Findings The analysis uncovers the ways in which financial subjects are produced. Important points of discontinuity are evident between texts, pointing to potential failures within financial inclusion constructs. Distilling aspects of continuity between texts shows up three kinds of subjects produced predicated on the site of economic engagement as owners of bodies, tangible property and intangible property. These subjects are shown to all share concerns with income and expense management. The analysis shows that subject positions and strategic actions (including the use of financial service providers) are mutually reinforcing, and that therefore financial subjects will engage only to the extent that the product or service enacts their subject position. With the financial subject as the starting point, it is possible to understand the use or rejection of particular financial products and services. Research limitations/implications Asset building is proposed as a field of activity not currently considered part of mainstream financial inclusion, questioning the terms on which individuals are to be financially “included”. Originality/value Approximately 2 billion people globally, and 66 per cent of adults in sub-Saharan Africa, are excluded from the formal financial system. While financial inclusion is considered beneficial, many projects face significant challenges. This suggests insufficient understanding of what drives individuals to adopt and use financial services. This paper makes a contribution by exploring the gap between academics, practitioners and individuals using a method that has not previously been applied in this field, and uncovering differences in understanding that have not previously been explored. The insights into financial inclusion in provided in this paper are original in the literature.

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.

An evidence-based framework for assessing the potential of mobile finance in sub-Saharan Africa

2012 ◽  
Vol 50 (3) ◽  
pp. 369-395 ◽  
Author(s):  
Richard Duncombe
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Evidence Based ◽  
Policy Environment ◽  
Conceptual Approach ◽  
Early Adoption ◽  
Market Driven ◽  
Sub Saharan ◽  
User Perspectives

ABSTRACTThis paper provides a framework-based approach for assessing the potential for mobile finance (m-finance) services to achieve greater financial inclusion in sub-Saharan Africa. The conceptual approach synthesises market and user perspectives, and constructs an evidence-based exploratory framework based on analysis of a single country, Uganda. Case evidence is used to inform four lifecycle stages for m-finance, moving from design to access, usage, and outcomes associated with differentiated m-finance applications. Based on analysis of published sources, findings from Uganda suggest that early adoption of m-finance has favoured those already financially included and market-driven solutions for the financially excluded are limited. Simple market modelling is found to be an insufficient basis on which to assess potential amongst the unbanked majority. The paper argues that the perception, behaviour and capability of users, and forms of user appropriation, should be a paramount concern, and potential for m-finance should be considered within a deeper understanding of a specified financial services context and within a defined market, regulatory and policy environment.

Institutional frames for financial inclusion of poor households in Sub-Saharan Africa

2016 ◽  
Vol 43 (11) ◽  
pp. 1096-1114 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
John Munene
Keyword(s):  
Financial Services ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Cross Sectional ◽  
Content Type ◽  
Persistent Problem ◽  
Poor Households ◽  
The World ◽  
Sub Saharan

Purpose The purpose of this paper is to examine institutional frames for financial inclusion of poor households in a Sub-Saharan Africa context and provide policy implications in solving the persistent problem of limited inclusion of poor households into mainstream formal financial services in Uganda. Design/methodology/approach Cross-sectional research design was used in this study. Data were collected from a randomly selected sample of 200 poor households located in Mukono District. Statistical program for Social Scientists and Analysis of Moment Structures were used to generate results. Findings Results have revealed the presence of regulative, normative, and procedural and declarative cognitive institutional frames, which affect financial inclusion of poor households in rural rural Uganda. The findings and policy implications are discussed in detail in the paper. Originality/value This study parallels the World Bank Global Findex survey (2012) on general aspects of financial inclusion around the world. It examines frames, which structure behaviours and actions of poor households towards their financial decisions and choices in attempting to improve financial inclusion with a major focus on rural Uganda.

Game-changing trends and forces for agricultural financing in sub-Saharan Africa toward 2055: Verification and prioritization through the real-time Delphi method

2018 ◽  
Vol 47 (3) ◽  
pp. 244-256
Author(s):  
Cobus Oberholster ◽  
Chris Adendorff
Keyword(s):  
Real Time ◽  
Delphi Method ◽  
Financial Services ◽  
Business Models ◽  
Research Effort ◽  
Sub Saharan Africa ◽  
Potential Game ◽  
The Real ◽  
The Future ◽  
Sub Saharan

This article reports on a research effort that looked at the future of agricultural financing in sub-Saharan Africa (SSA) toward 2055. The real-time Delphi method was used to verify key megatrends that should define the future of agriculture and agricultural development in the region. The implications of these trends for agricultural financing, together with potential game-changing forces with regard to the future delivery of financial services to agricultural producers, were also prioritized. The real-time Delphi method was employed to check both the future importance and probability of occurrence of the identified trends and corresponding disruptive technologies, business models, innovations in value-chain financing, market configurations, and institutional innovations. In addition, the method was also used to investigate the future perspectives of experts and to identify any specific, promising technological areas, innovations, and business models. Key elements of a desired future for agricultural financing in SSA were also confirmed.

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

scholarly journals ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION IN INDIA

2021 ◽  
pp. 1-5
Author(s):  
Arun.K.V
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Business Models ◽  
Formal System ◽  
Financial Inclusion ◽  
Handheld Devices ◽  
Mobile Banking ◽  
Major Step ◽  
Banking Business

Technology and financial inclusion are the popular coinage in banking parleys in the country. While technological upgradation and mobile banking are catching up so fast, financial inclusion is tardy. Financial inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion, banks cannot reach the un-banked. It is also a major step towards increasing savings and achieving balanced growth. The reach the country is having with technological progress mobile banking has the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge. However, the banking industry’s penetration to un-banked areas is still found sluggish. The role of the Indian banker is challenging. At one end of this spectrum lies the demand to achieve financial inclusion as nearly 50 per cent of the population is yet to be covered under the formal system of banking and at the other end lies the task to fulfil the needs of the existing customers. The first priority for banks is to adopt core banking solution (CBS), including all regional rural banks (RRBs). Next, a multi-channel approach using handheld devices, mobiles, cards, micro-ATMs, branches and kiosks can be used. However, it should be ensured that the transactions put through such front-end devices should be seamlessly integrated with the banks’ CBS. In rural areas, where accessibility is a problem, banks are using the microfinance network and business correspondents and facilitators to bring more people under the ambit of banking services. Capitalising on the huge untapped potential in smaller towns and cities and rendering financial services to this segment of people poses a big challenge. Few banks have explored technology solutions to increase the scale of their microfinance portfolios, with the use of smart cards and core banking solutions. KEYWORDS- Technology, Financial Inclusion, Core Banking, Business Correspondents

scholarly journals Factors That Matter for Financial Inclusion: Evidence from Sub-Sharan Africa - The Zimbabwe Case

2021 ◽  
Vol 10 (6) ◽  
pp. 48
Author(s):  
David Mhlanga
Keyword(s):  
Smallholder Farmers ◽  
Multinomial Logistic Regression ◽  
Multinomial Logit Model ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Farm Income ◽  
Smallholder Farming ◽  
Hand Off ◽  
Sub Saharan ◽  
The Government

The study intended to investigate the factors that are important in influencing the financial inclusion of smallholder farming households in Sub-Saharan Africa with a specific focus on Zimbabwe. Motivated by the fact that there is an increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study went further to interrogate factors that influence smallholder farmers to have a transaction account, to borrow and to have insurance. Since the dependent variable of financial inclusion had more than two categories, with three unordered categories, transaction account, savings/credit account, and insurance, the multinomial logistic regression was used to estimate the determinants of financial inclusion from these three categories of the dependent variable. The multinomial logit model results, with insurance as the reference category, indicated that the size of the household, transaction costs, gender and agricultural extension service were the factors influencing the demand for a household to open a transaction account. On the other hand, off-farm income and age of the household were the only two factors significantly influencing households to borrow. Therefore, it is imperative for, the government of Zimbabwe to come up with more policies that encourage farmers to participate in the formal financial market as financial inclusion can help to fight poverty and the general developments of societies.   Received: 28 April 2021 / Accepted: 31 August 2021 / Published: 5 November 2021

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