scholarly journals Development of Financial Inclusion of Agricultural Producers

2021 ◽  
pp. 162-170
Author(s):  
Ekaterina Shkarupa ◽  
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Poverty Reduction ◽  
Business Models ◽  
System Development ◽  
Financial Inclusion ◽  
Agricultural Producers ◽  
Budget Support ◽  
Basic Set ◽  
New Business

The limited involvement of firms in financial markets and a rather low level of financial literacy and absence of high-quality use of financial services are currently recognized as a fundamental issue. Recent research confirms that economic prosperity, sustainable development and poverty reduction are determined by the increased availability and use of financial services. All these circumstances have led to the emergence of another long-term trend in the financial sector which we define the concept of financial inclusion. Modern vectors of financial system development (emergence of new financial instruments, spread of new business models in the financial market, artificial intelligence, development and implementation of digitalization strategy) trigger discussions on the essence and content of financial inclusion. The article provides an overview of its available interpretations, and it is concluded that the theoretical basis of the research has not been developed properly. The presented literature review of approaches to financial inclusion definition makes it possible to show its main attributes: financial products and services, characteristics, quality, channels, conditions for obtaining a basic set of financial services. The main conclusions of the author prove that the mentioned aspects are met by the existing and functioning financial and credit infrastructure in agriculture, but with the peculiarities connected with the specifics of the industry. The article attempts to study the possibilities of such an infrastructure from the perspective of financial inclusion. Some indicators characterizing the infrastructure for provision of financial services in the southern regions presented in the article confirm the potential and opportunities for the development of financial inclusion of agricultural producers. Additionally, the author substantiates the issue of physical availability of this infrastructure, since it is difficult to assess the financial inclusiveness of agricultural producers from the standpoint of its parameters due to the specifics of agricultural production and the influence of various factors on the activities of a particular firm. The following directions are identified as possible ones for the development of financial inclusion of agricultural producers: expansion of budget support, implementation of public private partnership projects, increase of financial literacy, development strategies, development of government programs and projects, and active use of digitalization opportunities.

CURRENT TRENDS OF THE FINANCIAL TECHNOLOGIES MARKET FORMATION IN UKRAINE

2017 ◽  
Author(s):  
Svetlana Dzhereleiko ◽  
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Business Models ◽  
Banking Sector ◽  
Legal Regulation ◽  
Growth Trend ◽  
Biometric Data ◽  
Digital Identification ◽  
New Business ◽  
Break Even Point

The article examines the current state of the domestic market of financial technologies and identifies the main trends and prospects for its development. The essence of the concept of fintech, as well as the role of financial technologies in the further development of the financial sphere are considered. The factors of development of financial technologies in Ukraine are determined: stable coverage by mobile communication and the Internet, proper legal regulation, access to capital and investments, human resources. It was found that the fintech business in Ukraine is developing rapidly, increasing its volume due to the growing number of new fintech companies and the emergence of various fintech startups. As of the beginning of 2020, there were more than 100 fintech companies operating in Ukraine. 63% of fintech companies were financed at their own expense, and the same number passed the break-even point. At the same time, 14% of companies have a staff of more than 75 people. 43% of Ukrainian fintech companies conquer the international market. And of those who work exclusively in Ukraine, 73% are later going to start working abroad. The growth trend of the fintech sector remains unchanged. At the same time, the development of financial technologies in Ukraine is accompanied by a number of problems, the main of which are: over-regulation of the financial sector; legal and regulatory restrictions in the field of financial innovation; the slowness of the traditional banking sector; lack of capital to implement innovations; small and medium-sized businesses are closed to fintech initiatives; insufficient financial literacy of the population. It was revealed that the fintech direction in Ukraine has a significant potential for the introduction of financial services in new areas of activity and among various segments of the population. The main trends in the financial technology market are: alternative types of payments, marketplaces, new business models, artificial intelligence, digital identification and biometric data, open APIs.

Financial Inclusion in India-A Review

2020 ◽  
pp. 278-284
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Poverty Reduction ◽  
Financial Inclusion ◽  
World Bank Group ◽  
Critical Issues ◽  
The Status ◽  
The Government ◽  
Bank Group

Financial inclusion has been widely recognized as an engine of economic and social development. World Bank group laid stress on the role of financial inclusion in poverty reduction and boosting shared prosperity. Increasing the importance of financial inclusion for inclusive growth has gained the attention of researchers and academicians across the world. This review deals with the findings of research studies conducted on the extent and status of financial inclusion in India. A review of empirical findings revealed that despite many initiatives taken jointly by the Government and Reserve Bank of India, financial services outreach was not been very satisfactory. People particularly in rural areas, still did not have access to banking services. Evidence of gaps in financial inclusiveness in the country could also be perceived from the review. Lack of awareness and financial literacy, high cost of financial services, continued dependence of rural people on moneylenders, regional disparities in terms of outreach, etc. emerged as some of the critical issues. Hence, the study suggested that some concrete steps need to be taken by the government to improve the status of financial inclusion

scholarly journals Fintech as a Mean for Digital and Financial Inclusion

2020 ◽  
Author(s):  
Heike Bähre ◽  
◽  
Giovanni Buono ◽  
Valerie Isabel Elss ◽  
◽  
...  
Keyword(s):  
Social Structure ◽  
Financial Literacy ◽  
Financial Services ◽  
Business Models ◽  
Financial Inclusion ◽  
Social Progress ◽  
Financial Industry ◽  
Bank Account ◽  
Economic Point ◽  
Debit Card

Finance is shaping human relationship from an economic point of view as well as having influences on social structure and politics. In this relation, Fintech, a combination of the words “Finance” and “Technology”, is defined as “a new financial industry that applies technology to improve financial activities" [11] or as those “applications, processes, products, or business models in the financial services industry, composed of one or more complementary financial services and provided as an end-to-end process via the Internet” [10] or as “any innovative ideas that improve financial service processes by proposing technology solutions according to different business situations, while the ideas could also lead to new business models or even new businesses” [8]. As Bill Gates said “Banking is necessary; banks are not” describing what is happening throughout the financial industry: massive disappearing of traditional jobs, consolidation in the banking industries, robots that advice how to manage and save money. These changes have an impact on the social structure, but also have the potential to systematically promote financial literacy and inclusion. For example Grohmann, Klühs and Menkhoff [7] showed across four indicators of financial inclusion (having a bank account, having a debit card, saving in form of a bank account and the use of the debit card within the last year) that financial literacy is a significant precondition for financial inclusion. To what extent can Fintech applications be used to promote financial literacy and thereby inclusion? And what role do FinTech organizations play in supporting social progress? The aim of the article is to provide a systematic overview of Fintech's potential to promote digital and financial inclusion on diverse levels.

scholarly journals How does financial literacy impact on inclusive finance?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Morshadul Hasan ◽  
Thi Le ◽  
Ariful Hoque
Keyword(s):  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Rural Population ◽  
Poverty Reduction ◽  
Population Data ◽  
Financial Inclusion ◽  
Probit Regression ◽  
Financial Access

AbstractInclusive finance is a core concept of finance that makes various financial products and services accessible and affordable to all individuals and businesses, especially those excluded from the formal financial system. One of the leading forces affecting people's ability to access financial services in rural areas is financial literacy. This study investigated the impacts of financial knowledge on financial access through banking, microfinance, and fintech access using the Bangladesh rural population data. We employed three econometrics models: logistic regression, probit regression, and complementary log–log regression to examine whether financial literacy significantly affects removing the barriers that prevent people from participating and using financial services to improve their lives. The empirical findings showed that knowledge regarding various financial services factors had significant impacts on getting financial access. Some variables such as profession, income level, knowledge regarding depositing and withdrawing money, and knowledge regarding interest rate highly affected the overall access to finance. The study's results provide valuable recommendations for the policymaker to improve financial inclusion in the developing country context. A comprehensive and long-term education program should be delivered broadly to the rural population to make a big stride in financial inclusion, a key driver of poverty reduction and prosperity boosting.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

Determinants of Financial Inclusion in Namobuddha Municipality, Nepal

2021 ◽  
Vol 5 (1) ◽  
pp. 60-74
Author(s):  
Jeetendra Dangol ◽  
Anil Humagain
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Control Variable ◽  
Financial Innovation ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Gender Education ◽  
And Control ◽  
Moderating Role

Financial inclusion is a priority agenda in countries like Nepal. The study seeks to determine the access to financial services, financial innovation and quality of financial services to the financial inclusion.The study is based on questionnaire surveydata with363 household respondents using a convenient sampling technique, and carried out in Namobuddha Municipality of Nepal. The moderating effect of financial literacy and control variable of demographic items have been analysed using generalised regression model. The results show that financial innovation and quality of financial services are the significant determinants of financial inclusion; financial literacy is found significant and it plays a moderating role between the variables under study. The findings revealed that the tendency of higher level of financial inclusion was influenced by gender, education level and monthly income.

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 FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

scholarly journals Improvement of the Financial Services Market in the Context of Ensuring the Financial Inclusion

2021 ◽  
Vol 8 (523) ◽  
pp. 127-134
Author(s):  
O. V. Zhulyn ◽  
Keyword(s):  
Behavioral Finance ◽  
Financial Literacy ◽  
Financial Services ◽  
Digital Technologies ◽  
Financial Service ◽  
Financial Inclusion ◽  
Low Incomes ◽  
Analytical Research ◽  
Low Levels ◽  
Theoretical Foundations

The article is aimed at studying the theoretical, organizational and methodical aspects of financial inclusion; conducting an analytical research on the development of financial inclusion and its impact on the welfare of the population; formation of recommendations for improving the financial services market in the conditions of ensuring the financial inclusion in Ukraine. The theoretical foundations of financial inclusion and its components are considered, the author suggests to enclose therein the speed and security of obtaining a financial service, which is provided with the help of digital technologies, which is relevant in the context of the COVID-19 pandemic. The carried out analytical studies of financial inclusion in the world and in Ukraine have shown that its level is constantly growing and there are sufficient prerequisites for its development, including in the financial market the maximum number of the population who will be able to benefit from the use of financial services. As a result of the analysis, a framework for financial inclusion has been developed that allows identifying entities that are often unwittingly excluded from the financial services market – due to low levels of financial literacy, low incomes or discrimination on the part of financial institutions. An important aspect of the implementation of the concept of financial inclusion is the motivation to use financial services, using behavioral finance methods for this – not only by those who are forced to exclude, but also those who voluntarily refused to use them. The publication proposes recommendations and instruments for improving the financial services market, which will increase the level of financial inclusion, which in turn will contribute to economic growth, mobilization of savings, their preservation and increase, introduction of innovations and development of entrepreneurship.

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.

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