scholarly journals Financial Inclusion in ASEAN Countries – A Gender Gap Perspective and Policy Prescriptions

2021 ◽  
Author(s):  
Lukman Raimi ◽  
Mirela Panait ◽  
Eglantina Hysa ◽  
◽  
Keyword(s):  
Gender Gap ◽  
Low Income ◽  
Rural Areas ◽  
Financial Education ◽  
Financial Inclusion ◽  
Research Approach ◽  
Public Authorities ◽  
Financial Exclusion ◽  
Asean Countries ◽  
Credit Institutions

Financial inclusion is an increasingly intense issue that is of concern to the credit institutions and the public authorities. It has become topical and gained new value during this period of Covid-19 crisis. Although financial exclusion cuts across demographic categories, but certain categories of financial consumers such as women, young people, people with disabilities and those residing in rural areas have a low presence in the financial services sector. Previous studies attribute the incidence of financial exclusion of some segment of the society to low income, low level of financial education or difficult access to financial products and services generated by poor development of physical infrastructure. Is this true in the case of ASEAN region? A quantitative research approach was adopted in this study, while relying on the secondary data of the World Bank spanning 2011-2017, the UN Women ASEAN Gender Outlook report (2020 -2021), and enriched by scholarly works. The article focuses on the dimensions of the phenomenon of financial inclusion in ASEAN countries, with emphasis on the gender gap financial inclusion. The analysis of the extracted data reveals multiple differences among the countries in the region, a fact that can be explained by the different levels of financial technology development and the governmental interventions implemented to improve financial inclusion. On the strength of the findings, this paper argues that digitalization and financial innovation can also be solutions through which new consumers can be attracted to the financial system, but with these solutions come new challenges related to the protection of personal data and cyber security. For this reason, we believe that increasing financial inclusion must be approached at several levels and must involve joint efforts by public authorities, credit institutions and other categories of stakeholders.

scholarly journals A Legal Analysis of the Use of Innovative Technology in the Promotion of Financial Inclusion for Low-Income Earners in South Africa

2021 ◽  
Vol 24 ◽  
pp. 1-27
Author(s):  
Howard Chitimira ◽  
Phemelo Magau
Keyword(s):  
South Africa ◽  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Informal Settlements ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Financial Exclusion ◽  
The Government

The promotion of financial inclusion is important for the combating of financial exclusion in many countries, including South Africa. Nonetheless, most low-income earners living in rural areas and informal settlements are still struggling to gain access to basic financial products and financial services in South Africa. This status quo has been caused by a number of factors such as the absence of an adequate financial inclusion policy, the geographical remoteness of financial institutions to most low-income earners, rigid identity documentary requirements, a lack of access to reliable and affordable Internet connection by low-income earners living in informal settlements and rural areas, a lack of financial illiteracy, the high costs of financial services, unemployment and poverty, over-indebtedness, and cultural and psychological hindrances to low-income earners in South Africa. Consequently, these factors have somewhat limited the access to financial services offered by financial institutions to low-income earners living in rural areas and informal settlements. In many countries, including South Africa, the financial sector is relying on innovative technology, especially in banking institutions, to aid in the offering of financial services to their customers. It is against this background that this article discusses selected legal and related challenges affecting the regulation and use of innovative technology to promote financial inclusion for low-income earners in South Africa. The article further discusses possible measures that could be adopted by the government, financial institutions and other relevant regulatory bodies to promote the use of innovative technology to combat the financial exclusion of low-income earners in South Africa.

scholarly journals Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 277-299
Author(s):  
Salihah Sharizan ◽  
Nur Harena Redzuan ◽  
Romzie Rosman
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Financial Inclusion ◽  
Primary Data ◽  
Structured Interviews ◽  
Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

scholarly journals FINANCIAL INCLUSION – ONE STEP CLOSER TO THE EUROZONE?

2019 ◽  
Vol 4 (2) ◽  
pp. 81-90
Author(s):  
Oana Mirela Cojocaru (Diaconescu) ◽  
Otilia Georgiana Floroiu
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Personal Development ◽  
Financial Stability ◽  
Financial Education ◽  
Financial Inclusion ◽  
Convergence Criteria ◽  
Self Employment ◽  
Financial Exclusion ◽  
Operational Errors

Factors leading to financial exclusion are primary linked to shortages of financial resources, high costs for financial services, distrust in financial institutions, and lack of financial education. Financial inclusion of the population can sustain economic monetary and financial stability by taking efficient saving and investing decisions or by boosting the performance of an economy. In a responsible financial system, people can safely save money without fearing losing it as a result of fraud, theft, or operational errors, can conduct financial transactions, can take a loan for consumption or for investing in personal development or business idea with a proper understanding of the terms and conditions, and they can insure themselves against any kind of risk. Considering that financial exclusion leads to social exclusion, the need to establish institutions that can offer marginalized categories of the population access to different financing means is obvious, especially in rural areas. People can use financing for self-employment or for implementing entrepreneurial ideas that can generate new jobs and revenue for the community. This paper adds to the existing literature in identifying the existing relations between financial inclusion and economic growth and further investigates if an increase in the level of financial inclusion has an impact on achieving the convergence criteria and therefore entering the Eurozone.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

scholarly journals Financial Prudence through Financial Education: A Conceptual Framework for Financial Inclusion

2018 ◽  
Vol 31 (1) ◽  
pp. 151-166
Author(s):  
Laily Dwi Arsyianti Laily Dwi Arsyianti
Keyword(s):  
Conceptual Framework ◽  
Production Function ◽  
Low Income ◽  
Financial Education ◽  
Income Group ◽  
Financial Inclusion ◽  
Social Production ◽  
Financial Behaviors ◽  
The Government ◽  
Low Income Households

This paper aims to develop a framework to improve financial prudence through financial education and financial inclusion for low-income households in Indonesia. Knowledge shapes attitude, which later influences behavior. A household, in terms of its social production function, needs to feel secure financially in order not to fall into insolvency or bankruptcy. Households that are equipped with better financial education and knowledge are more likely to undertake recommended financial behaviors. By targeting the low-income group through a financial inclusion agenda, the government, Islamic social finance practitioners, and academicians enable low-income households to act with financial prudence.

Financial Inclusion through Financial Literacy

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Financial Literacy ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Financial Education ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Decisions ◽  
College Curriculum ◽  
Financial Exclusion ◽  
The Government

Financial literacy is a means to tackle the problem of financial exclusion. It is a combination of awareness, skills, knowledge, attitude and behaviors necessary to make sound financial decisions and achieve financial well being. Objective of this study is to analyze current policy, practices and evidences on financial literacy. The study has been carried out on the basis of review of literature and secondary data collected from a range of sources. It is found that the government of India, RBI and other regulatory bodies are running financial literacy campaigns through diverse mediums. Financial literacy centers (FLCs) are contributing for enhancement of financial literacy. However, they need to be strengthened by enhancing resources. Inclusion of financial education in school and college curriculum has also been recommended. Scope of the study is limited to Ghaziabad district of Uttar Pradesh in India. The study might be valuable for policymakers in enhancing financial inclusion.

FINANCIAL INCLUSION THROUGH MICRO FINANCE

2021 ◽  
pp. 1-4
Author(s):  
P. Nagarajan
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Rural Areas ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Poor People ◽  
Resource Base ◽  
Income Groups ◽  
Low Income Groups

Finance has become an essential part of an economy for development of the society as well as economy of nation. World leaders are embracing nancial inclusion at an accelerating pace, because they know that an inclusive nancial system that responsibly reaches all citizens is an important ingredient for social and economic progress for emerging markets and developing countries. Despite the political tailwind, half of the working-age adults globally – 2.5 billion people – remain excluded from formal nancial services. Instead, they have to rely on the age-old informal mechanisms of the moneylender or pawnbroker for credit or the rotating savings club and vulnerable livestock for savings. The pandemic has had a momentous impact on economies and societies around the world. At the same time, it has shown that, with the right approach, it is possible to protect and safeguard the economy. . Through Financial inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of appropriate nancial services at an affordable cost, on timely basis to vulnerable groups such as low income groups and weaker section who lack access to even the most basic banking services. It helps in economic development as it widens the resource base of the nancial system by developing a culture of savings among large segment of rural population. Further, nancial inclusion protects their nancial wealth and other resources in exigent circumstances by bringing low income groups within the perimeter of formal banking sector. Financial inclusion engages in including poor people in the formal banking industry with the intention of securing their minimal nances for future purposes. Micronance has become a medium of extending nancial services to unbanked sections of population. Micronance is banking the unbankables, bringing credit, savings and other essential nancial services within the reach of millions of people who are too poor to be served by regular banks, in most cases because they are unable to offer sufcient collateral. In a country like India with almost 30% (more than 360 million) people still below poverty line and according to latest census gures, more than 70% or 840 million people living in rural areas with little or no access to formal banking and other nancial services, micronance has a big role to play in order to bridge this gap. The Micro Finance Institutions occupies key position in nancial inclusion through micro nance where the exclusion. In developing countries, the growth of micronance institutions (MFIs) which specically target low income individuals are viewed as potentially useful for promotion of nancial inclusion. Even though MFIs at present, mainly offer only credit products; as they grow, they are likely to expand their product range to include other nancial services.

scholarly journals Effects of Malnutrition on the Academic Performance: A Case Study of Grade 6-8 Learners in Punjab, Pakistan

2019 ◽  
Vol 5 (4) ◽  
Author(s):  
Muhammad Shabbir ◽  
Qamar-uz-Zaman ◽  
Muhammad Atif
Keyword(s):  
Academic Performance ◽  
Low Income ◽  
Rural Areas ◽  
Quantitative Research ◽  
Research Approach ◽  
Attendance Rate ◽  
Learning Capacity ◽  
Awareness Programs ◽  
Is Design

The present research is design to assess the “effects of malnutrition on the academic performance of grade 6-8 learners in rural areas of Tehsil Hafizabad”. Quantitative research approach was used to achieve the objectives of the study. Quantitative data was gathered by using Scheduled Interview from the sample of 150 learners of the three selected schools. Data was analyzed through statistical package for social sciences (SPSS). The outcomes of the study revealed that the malnutrition, particularly the use of low quality foods significantly lowers the academic performance in terms of lowering the understanding level of the learners and attainments; it reduces the attendance rate ultimately. It was observed that the less participation in physical activities, low income of the household and crowded demographic conditions reduced the learning capacity of the students. Some useful suggestions were also made, strictly ban on low quality food, awareness programs should be launched for public, and more studies must be conducted to highlight and overcome the issue.

scholarly journals THE ROLE OF COMMUNICATION IN SACCOS IN PROMOTING FINANCIAL INCLUSION IN KENYA

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Rose Ndegwa
Keyword(s):  
Low Income ◽  
Target Population ◽  
Financial Inclusion ◽  
Inclusive Development ◽  
Primary Data ◽  
Service Access ◽  
Financial Exclusion ◽  
Socially Excluded ◽  
Descriptive Survey

<p>Financial inclusion is a prerequisite to economic development. This has been echoed by international as well as national bodies. Studies have shown that financial exclusion has its roots in social exclusion. This indicates the depth and importance of financial inclusion in creating inclusive development. Numerous studies have revealed levels of financial inclusion with limited studies performed on the role of SACCO initiatives on financial inclusion. This research examined measures of financial inclusion which include both access and usage of financial products by low income earners and the socially excluded via SACCOs. Since access and usage are supplementary, they reflect a more vivid picture of financial inclusion. The study sought to analyze the role of SACCOs in promoting financial inclusion in Kenya. The study was guided by the three specific objectives: geographical coverage of SACCOs; cost and contribution of SASRA regulations towards enhancing financial inclusion. To achieve the objectives of the study a descriptive survey research was adopted. The target population was the three SACCOs in Meru town. 43 questionnaires were issued to SACCO members to access the level of financial service access. Primary data was analyzed with aid Microsoft excel software to generate frequencies, mean and percentages. Pie charts, graphs and tables were used to present various aspects of the variables. Content analysis was used to analyze qualitative while quantitative data was analyzed using descriptive statistics.</p><p> </p><p><strong>JEL: </strong>O10; O20; G10; G20</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0663/a.php" alt="Hit counter" /></p>

scholarly journals Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa

2020 ◽  
Vol 64 (3) ◽  
pp. 337-355
Author(s):  
Howard Chitimira ◽  
Menelisi Ncube
Keyword(s):  
South Africa ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Relevant Role ◽  
Legislative Framework ◽  
The Government

AbstractThis article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation and poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. Given these flaws, the article highlights the need for the government, financial institutions and other relevant stakeholders to adopt legislative and other measures as an antidote to financial exclusion and poverty challenges affecting the poor and low-income earners in South Africa.

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