scholarly journals Financial inclusion and gender-induced poverty in Nigeria

2022 ◽  
Vol 10 (8) ◽  
pp. 266-274
Author(s):  
Sunday Bello ◽  
Godwin Emmanuel Oyedokun ◽  
Modupeola Adeolu-Akande
Keyword(s):  
Commercial Bank ◽  
Financial Literacy ◽  
Poverty Reduction ◽  
Financial Institution ◽  
Negative Influence ◽  
Financial Inclusion ◽  
Access To Credit ◽  
Bank Branches ◽  
Bank Deposits ◽  
Gender Based

The goal of this study was to see how financial inclusion affects gender-based poverty in Nigeria. Commercial bank branches, deposits, and borrowers were the proxy for financial inclusion. The poverty index was used to measure poverty reduction. The World Development Indicator (WDI) and the CBN Statistical Bulletin 2021 provided the data for this study. Finally, the study included the years 2002 to 2019. Financial inclusion reduces household poverty in Nigeria, according to the study, which used a VAR estimate. The coefficients of commercial bank branches and commercial bank deposits were (-0.004) and (-0.008), respectively, indicating that they had a negative influence on poverty reduction. Furthermore, the study discovered that having access to credit through a financial institution was crucial in lowering poverty in Nigeria over the study period. As a result, the report recommends that steps to promote the rule of law, particularly contract enforcement and financial regulatory inspection, be implemented, resulting in more financial inclusion and a reduction in poverty and income gaps, particularly between men and women. The benefits of financial inclusion must be made more widely known, particularly in rural regions, through promoting financial literacy among the poor through education, advertising, and traditional institutions.

scholarly journals Role of financial inclusion in poverty alleviation in Odisha

2020 ◽  
Vol 8 ◽  
pp. 1-8
Author(s):  
Narayan Rout ◽  
Keyword(s):  
Poverty Alleviation ◽  
Millennium Development Goals ◽  
Rice Yield ◽  
Financial Inclusion ◽  
Access To Credit ◽  
Development Indicators ◽  
Bank Branches ◽  
Development Goals ◽  
Branch Banking

Objectives: This study dwells on the role of financial inclusion in poverty alleviation. The alleviation of poverty is implemented by combining direct tools and indirect tools. Traditional solutions have not been as effective and sufficient to tackle poverty. Indirect tools include improving access to credit, promoting savings to the poor. Methods/Statistical analysis: We use district level branch banking and development indicators data for 30 districts of Odisha during the discrete period 1992 to 2011, since official poverty data for district levels are not released. Findings: When controlled for PDDP, number of bank branches plays a significant role to reduce poverty. We find that an increase of Rs. 10,000/- in PDDP can cause a fall in poverty by 4%, an increase of 10% in Rice Yield can cause fall in poverty by 1.5%, whereas, an additional 100 number of bank branches can reduce poverty by 4.7% in the districts. Application/Improvements: The results of this analysis could go further to achieve the millennium development goals in few years. Novelty: We find the relative ranking of the coefficients of real sector and finance sector variables, that when controlled for other variables, e.g., Rice Yield, No. of Branches and PDDP to negatively impact poverty rates. Keywords: inclusion; poverty alleviation; banking; NDDP; branches

Deficient regimes of anti-money laundering and countering the financing of terrorism: agenda of digital banking and financial inclusion

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sisira Dharmasri Jayasekara
Keyword(s):  
Money Laundering ◽  
Financial Literacy ◽  
Quantitative Measure ◽  
Financial Inclusion ◽  
Content Type ◽  
Bank Branches ◽  
Compliance Level ◽  
Financing Of Terrorism ◽  
Work Done ◽  
The Impact

Purpose The purpose of this paper is to discuss the dilemma of digital banking and the financial inclusion agenda of countries with the level of strength of the anti-money laundering and countering the financing of terrorism (AML/CFT) regime. Design/methodology/approach This study develops an AML/CFT compliance index using the assessment data of FATF to measure the level compliance strength of countries to measure the impact of the strength of the AML/CFT regime on the financial inclusion. Financial literacy, literacy, number of bank branches and income level of countries are used as other control variables in regression analysis, which is used to test the developed model. Findings The results suggest that the AML/CFT compliance level of a country is a significant factor in determining the level of financial inclusion. Besides, the number of bank branches for 100,000 people, literacy and financial literacy are significant factors in financial inclusion. However, the results reveal that financial literacy is significant over literacy in determining financial inclusion. Therefore, having considered the importance of the AML/CFT regime for financial inclusion, regulators are required to strengthen the AML/CFT regime and make clarity on the AML/CFT regulations. This clarity will promote the digitalization and financial inclusion over time. Practical implications Most of the studies related to financial inclusion and AML/CFT aspects are qualitative. Therefore, this is only the start of measuring the strength of an AML/CFT regime. More appropriate measures will be developed in the future based on this foundation. Originality/value This paper is an original work done by the author, which discusses the issues of digital banking and financial inclusion agenda of countries with the compliance strength of the AML/CFT regime. The AML/CFT compliance index is the original idea of the author, which can be used as a quantitative measure to capture the strength of the AML/CFT regimes in future studies.

scholarly journals Pendampingan Manajemen Keuangan Melalui Program Literasi Keuangan Kepada Komunitas Usaha Mikro Kecil dan Menengah (UMKM) yang Terjerat Rentenir di Kabupaten Nganjuk

2019 ◽  
Vol 3 (1) ◽  
pp. 113-126
Author(s):  
Ainna Amalia FN ◽  
Lilis Rahmawati
Keyword(s):  
Community Development ◽  
Financial Literacy ◽  
Financial Management ◽  
Financial Institution ◽  
Financial Inclusion ◽  
Business Community ◽  
Literacy Programs ◽  
Management Skills ◽  
Asset Based Community Development ◽  
Management Capabilities

The development of UMKM in the process does not always go smoothly, sometimes the business also has obstacles, including being entangled by moneylenders. Therefore, the Assistant Team of Al ‘Ula Islamic Financial Institution of STAI Miftahul Ula Nglawak partnered with the NU LKK Nganjuk and Cooperative-UMKM Office of Nganjuk provides capital assistance without interest for MSME community through literacy programs. By using the Asset-Based Community Development (ABCD) method, this study aims to provide financial management assistance for UMKM Community who were entangeled by moneylenders.  The results of the study indicate social change as follows: (1) awareness increases the productivity and work ethic; (2) the emergence of financial management skills through financial literacy; (3) financial literacy, which is the emergence of financial inclusion, financial passport, and financial access issues; (4) the emergence of efforts optimization to empower financial management capabilities; (5) able to make strategic planning to improve the level of the business community; (6) the emergence of new assistants;  (7) there is a partnership between the assistant team and stakeholders.

scholarly journals Financial Inclusion: Globally Important Determinants

2021 ◽  
Vol 17 (4) ◽  
pp. 1-11
Author(s):  
Peterson K. Ozili
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Belief Systems ◽  
Financial Inclusion ◽  
Technology Infrastructure ◽  
Bank Branches ◽  
Automated Teller Machines ◽  
Direct Legislation ◽  
Credit Card Usage ◽  
To Receive

Abstract This paper highlights the globally-important determinants of financial inclusion. The determi-nants identified in this paper are formal account ownership; demand for formal savings; demand for formal borrowing; financial literacy and education; debit and credit card usage; the need to receive remittances from family and friends; size of the financial system; number of automated teller machines (ATMs); number of bank branches; proximity to a bank; availability and access to mobile phones; availability of digital financial products and services; technology infrastructure; government policy; culture and traditional belief systems; national financial inclusion strategy and implementation; and direct legislation.

Financial Inclusion and Human Development

2020 ◽  
Author(s):  
Maria Soledad Martinez Peria ◽  
Mu Yang Shin
Keyword(s):  
Human Development ◽  
Financial Services ◽  
Positive Association ◽  
Preliminary Evidence ◽  
Financial Inclusion ◽  
Full Potential ◽  
Credit Access ◽  
Access To Credit ◽  
Bank Branches ◽  
The Impact

The link between financial inclusion and human development is examined here. Using cross-country data, the behavior of variables that try to capture these concepts is examined and preliminary evidence of a positive association is offered. However, because establishing a causal relationship with macro-data is difficult, a thorough review of the literature on the impact of financial inclusion, focusing on micro-studies that can better address identification is conducted. The literature generally distinguishes between different dimensions of financial inclusion: access to credit, access to bank branches, and access to saving instruments (i.e., accounts). Despite promising results from a first wave of studies, the impact of expanding access to credit seems limited at best, with little evidence of transformative effects on human development outcomes. While there is more promising evidence on the impact of expanding access to bank branches and formal saving instruments, studies show that some interventions such as one-time account opening subsidies are unlikely to have a sizable impact on social and economic outcomes. Instead well-designed interventions catering to individuals’ specific needs in different contexts seem to be required to realize the full potential of formal financial services to enrich human lives.

Colombia financial inclusion set to progress

2017 ◽  
Keyword(s):  
Latin American ◽  
Financial Services ◽  
Social Inclusion ◽  
Poverty Reduction ◽  
Financial System ◽  
Financial Inclusion ◽  
Foreign Banks ◽  
Content Type ◽  
Access To Credit ◽  
Financial Exclusion

Subject Financial inclusion in Colombia. Significance Colombia saw nearly 1 million adults join the financial system for the first time in 2016, despite the economy struggling with sluggish growth. Financial inclusion is a high priority for several Latin American governments at the moment, with high degrees of financial exclusion viewed as obstacles to economic growth, social inclusion and poverty reduction. Impacts Greater financial inclusion will help reduce informality in the Colombian economy, and the high use of cash. Improved access to credit and a range of financial services will support the growth of the country’s many SMEs. Millions of new financial system customers will make Colombia even more attractive to foreign banks.

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.

scholarly journals The Impacts of Financial Inclusion on Economic Development: Cases in Asian‑Pacific Countries

2019 ◽  
Vol 22 (1) ◽  
pp. 7-16
Author(s):  
Dinh Thi Thanh Van ◽  
Nguyen Ha Linh
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Services ◽  
Financial Institution ◽  
Financial Inclusion ◽  
Bank Branches ◽  
Large Numbers ◽  
Domestic Credit ◽  
Asian Pacific ◽  
The Impact

Financial inclusion efforts seek to ensure that all members of an economy can have access to and effectively use appropriate financial services. Improving financial inclusion has become a significant concern for developed and developing countries alike. There are many indicators of financial inclusion, the most elementary of which includes having an account in a financial institution. This paper will evaluate the impact of indicators of financial inclusion on economic development. The result shows that correlations exist between large numbers of bank branches, ATMs, domestic credit in the private sector and the increased rate of development in the economy. People will gain a more prosperous life due to this development. The paper also provides recommendations for the governments of developing countries to improve financial inclusion.

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 Agent Banking And Poverty Reduction In Benue State, Nigeria

2020 ◽  
Vol 7 (5) ◽  
pp. 213-229
Author(s):  
David Terfa Akighir ◽  
T. Jacob Tyagher ◽  
Aaron Ateata
Keyword(s):  
Local Government ◽  
Rural Areas ◽  
Financial Literacy ◽  
Rural Population ◽  
Poverty Reduction ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
Logit Regression Model ◽  
The Impact

The study investigated the impact of agent banking on poverty reduction in Benue State, Nigeria. The study is hinged on the agency theory, risk management theory, the regulatory dialectic theory and the basic needs theory. Focusing on the agent banking activities of the First bank PLC, the study used the Taro Yammene’s formula to select 199 agents for investigation. Questionnaire was used for data collection but only 185 copies of the questionnaire were retrieved for analysis. The study employed descriptive tools such as tables and percentages and paired t-test as well as Foster, Greer and Thornbecke (FGT) index. Also, a logit regression model was employed to ascertain whether or not agent bank has the probability of reducing poverty in Benue State. The study found that engaging in agent banking has the probability of reducing poverty in Benue State which is typically an agrarian state with high poverty incidence among highly unbanked population. Agent banking in this unbanked State where only 11 local government areas out of 23 local government areas have the presence of banks has the potential of increasing financial inclusion and enhancing financial literacy. With the presence of agent banking in the state, it will enhance business sustainability and facilitate financial transactions. These will increase economic activities and increase employments and reduce poverty. Given the potentials of agent banking for socio-economic development in the state, it is recommended that financial literacy awareness should be created so that rural population who have long lived unbanked to accept banking services via the agent banking. Also, banks operating in the state should leverage on the opportunity of agent banking to penetrate the rural population with a view to achieving financial inclusion in line with the CBN’s revived National Financial Inclusion Strategy (NFIS) which places implementation focus on women, rural areas, youth, Northern Nigeria and MSMEs to achieve 95% financial inclusion rate by 2024.

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