scholarly journals Financial Inclusion through Islamic Banking

2017 ◽  
Vol 6 (2) ◽  
pp. 324
Author(s):  
Mumna Nazar
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Primary Data ◽  
Islamic Banking ◽  
Committee Report ◽  
Secondary Sources ◽  
The People ◽  
Financial Exclusion

<div><p><em>Financial inclusion is a buzz word today. It plays an important role in driving away the poverty from the country. Financial inclusion is the process of ensuring financial services to the weaker sections of the society at an affordable cost. As per the Sachar Committee Report, Muslims in India are financially excluded. Even though they have an account, the extent of usage is very low due to the religious reasons.  The Non-Muslims also do not actively engage in the formal financial system due to the interest involvement. Islamic Bank can serve as a remedy for the financial exclusion of the Muslims as well as Non-Muslims community. The objective of this paper is to understand the extent of financial inclusion among the people in Kerala and their awareness and preference towards Islamic banking. Both primary and secondary data are collected for the study. Secondary data are collected from various secondary sources like published articles, journals, reports, books and websites. Primary data are collected with the help of questionnaire among people in Kerala. The study revealed that most of the respondents have accessed bank accounts but the extent of usage is only for namesake. Moreover the awareness and preference towards Islamic Banking is very high among the Muslims as well as Non-Muslims and suggested that proper care must be taken for introducing Islamic banking system in India. It will ultimately leads to the inclusive growth of our country.</em></p></div>

scholarly journals Financial Inclusion, Awareness, and Understanding of Financial Products among People Selected Gewogs (Blocks) of Bhutan

2019 ◽  
Vol 8 (11S2) ◽  
pp. 485-494
Keyword(s):  
Financial Services ◽  
Financial System ◽  
Secondary Data ◽  
Primary Objective ◽  
Financial Inclusion ◽  
Primary Data ◽  
Journal Articles ◽  
Financial Products ◽  
The People ◽  
Survey Finding

The financial products that are being offered by the banks in the contemporary era are significant to enhance the primary objective of the banks that is, ‘Financial Inclusion’ (FI). However, due to umpteen reasons, the banks in many countries have failed streamlining the poor and the majority of the rural folk. Bhutan is not an exception as it is in a landlocked country. The Survey finding (2013) depicted a smaller share of Bhutanese involvement in the formal financial system (48%) whereas larger percentage of them involved in informal financial system. Further, the present Governor of Royal Monetary Authority (The central bank of the country), Dasho Penjor in his discussion on the review of His Majesty’s address on 109th National day Celebration in Trongsa stated that the majority of the rural folks are unable to avail banking services extended by the formal institutions. Besides, financial services can be availed by mass only when banks and other financial institutions run some awareness programmes. There are a few literature on FI in Bhutan in general; however literature on the awareness and understanding of financial products of the people are minimal in the country. The present study, therefore, investigates the scenario of FI along with awareness and understanding of financial products of commercial banks among Bhutanese in four Gewogs (Blocks) of the country that is, Bongo, Chapcha, Darla and Samphelling. The structured questionnaire was designed and primary data from 378 respondents were collected. Further, various articles and papers published in survey findings, magazines, and journal articles are used as secondary data sources of the study. The collected data have been tabulated, analysed, and interpreted with the help of Descriptive statistics, Independent t-test and Analyses of Variance (ANOVA).

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.

scholarly journals Implementation of fiqh based on the maslahah in murabahah financing in sharia banking

2019 ◽  
Vol 18 (1) ◽  
pp. 119
Author(s):  
Abdul Atsar ◽  
Azid Izuddin
Keyword(s):  
Islamic Law ◽  
Secondary Data ◽  
Primary Data ◽  
Islamic Banking ◽  
Inventory Data ◽  
Public Interests ◽  
The People ◽  
Inductive Methods ◽  
Analytical Research ◽  
The Concept Of Law

The law of Muamalat gives the freedom to bind themselves to contracts and conduct transactions for mutual benefits and benefits. Islamic banking prepares various types of contracts in accordance with sharia provisions, one of the murabahah contracts. The formulation of the problem in this study is how is the application of fiqh maslahah in Islamic banking murabahah financing contracts? The method used in this study is a normative juridical method, which refers to the concept of law as a rule. In this research the author of the legal approach, analytical approach. The specification of this study is descriptive analytical research. The type of data used in this study are secondary data and primary data. Data collection begins with activities to identify and inventory data sources. Drawing conclusions is done using inductive methods. Murabahah is a sale and purchase agreement between a bank and a customer where the bank buys the goods needed and resells the customer with a basic cost plus profits agreed by both parties, there is no coercion from the parties in making murabahah agreements. In making and implementing murabahah financing contracts must pay attention to public interests not just the interests of the parties. According to Islamic law in making contracts based on sharia principles, must prioritize the benefit and refuse harm to achieve the goal of shara, namely to increase the benefit of the people by guaranteeing basic needs (dharuriyah) and fulfilling secondary needs, needs (hajjiiyah) and their complementary needs.

scholarly journals The Impact of Transformation of Social Assistance on Financial Inclusion and Welfare of Beneficiary Families

2021 ◽  
Vol 16 (1) ◽  
Author(s):  
Arief Fajar Firmansyah ◽  
Suharno Suharno ◽  
Arintoko Arintoko
Keyword(s):  
Financial Services ◽  
Social Assistance ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Primary Data ◽  
Beneficiary Community ◽  
Cash Transaction ◽  
Representative Office ◽  
The Impact ◽  
The City

This study is based on the transformation of the distribution of cash social assistance into non-cash in the City of Tegal. The non-cash distribution is by using a banking account that has a combo card facility, which is a multi-function card that can be used as an ATM card as well as disbursement of social assistance. There is a slice of the objectives of the non-cash transaction referred to as an alternative to accelerate the increase in financial inclusion of the Indonesian population as stated in the National Strategy for Financial Inclusion with the financial inclusion index indicator. This study aims to determine the impact of the transformation of the distribution of social assistance on financial inclusion in Tegal City and the welfare of beneficiary families (KPM). Primary data were collected from questionnaires that have been filled in by KPM and secondary data were obtained from the Central Bureau of Statistics and the Representative Office of Bank Indonesia Tegal. The analytical tool used is a quantitative approach to KPM's response to the distribution of non-cash social assistance. As supporting data, in the problem of financial inclusion, analysis tools are used by qualitatively comparing financial inclusion that is generated as a result of the implementation of the distribution of non-cash social assistance to existing financial inclusion. The analysis shows that the acceptance and perception of KPM supports the transformation of non-cash social assistance distribution, this is supported by KPM's interest in using combo cards as a means of saving. On the other hand, the transformation of the distribution of social assistance to non-cash contributes to financial inclusion in the city of Tegal, namely the Agent Laku Pandai (LKD) contributing 75.20% to banking financial services in Tegal City. From the 4 Welfare Indicator Classifications, it is found that the welfare of KPM has experienced changes in welfare after receiving non-cash social assistance and has improved the welfare of the beneficiary community (KPM).Keywords : Non-Cash Social Assistance, PKH, BPNT

scholarly journals Penggunaan Teknologi Branchless Banking Sebagai Alat Memperluas Inklusi Keuangan Masyarakat Kab. Kampar – Riau

2021 ◽  
Vol 11 (2) ◽  
pp. 251-256
Author(s):  
Fitri Ayu Nofirda ◽  
Dwi Dewisri Kinasih
Keyword(s):  
Data Collection ◽  
Sampling Method ◽  
Secondary Data ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Primary Data ◽  
Purposive Sampling ◽  
The People ◽  
Regression Test ◽  
Positive Effect

This study aims to see the effect of branchless banking on financial inclusion. The sample in this study amounted to 96 respondents. The sampling technique used was purposive sampling method. Data collection techniques using primary data in the form of questionnaires and secondary data. This study uses a regression test to test the hypothesis. This study found that branchless banking has a positive effect on the financial inclusion of the people of Kampar Regency, Riau.

scholarly journals A Study on Awareness and Attitude Towards Islamic Banking in Tirupattur District

2021 ◽  
Vol 9 (4) ◽  
pp. 1-6
Author(s):  
K. A Maria John Joseph ◽  
D Mahalakshmi
Keyword(s):  
Islamic Law ◽  
Banking System ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banking ◽  
Secondary Sources ◽  
Law Of Nature ◽  
Finance Model ◽  
The Holy Quran ◽  
Convenience Sampling

The banking system in every country is based on the interest system. Interest-bearing money is almost like the law of nature where money generates money but alternative banking system called Islamic banking. Islamic banking follows Islamic ethical principle which appears very different from those of the conventional western banking finance model. In this study, the data has been obtained through both primary and secondary sources. The secondary data were collected from journals, magazines, and the Holy Quran. The fresh data were collected through questionnaires from Tirupattur District. The research design used for this study is descriptive type. The Sampling design used for the study was the convenience sampling technique. The percentage analysis was used for the study. The Islamic banking system in India was introduced for both Muslim and Non-Muslim customers. Few of the Muslim customers have an account in Islamic banking. Most of the customers do not have awareness about the Islamic bank. This study aims to discover awareness and attitude about Islamic banks, both Muslims and non-Muslim in Tirupattur District. The main objective of Islamic Banking is to retain their existing customers and attract new customers by creating awareness about their banking system. This banking system follows the interest-free principles under Islamic Law.

Fostering Rural Financial Services through Technology: The Case of FINO PayTech

2017 ◽  
Vol 21 (01) ◽  
pp. 81-117 ◽  
Author(s):  
Debasish Maitra ◽  
Parijat Upadhyay
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Scaling Up ◽  
Financial Inclusion ◽  
The People ◽  
Financial Exclusion ◽  
Product Delivery ◽  
Micro Insurance ◽  
A Company ◽  
First Mover

The case depicts a situation faced by a company in the business of financial inclusion services. FINO PayTech Limited (popularly known as FINO) was the first mover in the blue ocean of financial inclusion business in India. It is quoted as the world’s largest banking agent manager. Formed in Mumbai in 2006 with the mission to solve problem of financial exclusion, FINO entered the market riding on the biometric smartcard and hand held devices technology and had since grown exponentially. It served more than 64 million end customers all across India adding average of one million new customers to the formal financial system every month. FINO’s uniqueness came from factors such as diversified product offering (which ranges from savings, credit, payment services, remittances, insurance, financial literacy, and so on), a robust technology, a dedicated channel of bandhus (banking correspondents/agents) and mature processes. The top leadership envisaged that FINO could not remain limited to savings and withdrawals activity if it had to reach many more million customers. The credit and micro insurance services had to be provided at the doorstep of the people and only then could FINO possibly project itself as a multi-product delivery company and that’s the challenge management was encountering when scaling up in a constrained regulatory framework.

scholarly journals Keunggulan Bank Pembiayaan Rakyat Syariah “Amanah Ummah” Dalam Penerapan Fatwa Dewan Syariah Nasional dan Peraturan Otoritas Jasa Keuangan

2020 ◽  
Vol 4 (1) ◽  
pp. 17
Author(s):  
Andi Muhammad Asrun ◽  
Abdu Rahmat Rosyadi ◽  
Agus Satory ◽  
Yennie K. Milono ◽  
Ridwan Malik
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Secondary Data ◽  
Development Trend ◽  
Primary Data ◽  
Islamic Banking ◽  
Normative Approach ◽  
Business Units ◽  
Capital Assets ◽  
The Development Trend

AbstractIslamic People's Financing Bank (BPRS) is a bank that conducts business activities based on sharia principles which in its activities do not provide services in payment traffic. The development trend of BPRS since the enactment of Islamic banking law continues to increase. All BPRS activities are obliged to apply sharia principles which are stated by the National Sharia Board of the Indonesian Ulema Council (DSN-MUI). After the Financial Services Authority (OJK) was formed there is now a change in regulation that the enactment of the DSN-MUI fatwa must be included in the Financial Services Authority Regulation (P-OJK). Sharia banking problems that arise at this time generally occur in Sharia Commercial Banks (BUS), Sharia Business Units (UUS), as well as in Islamic People's Financing Banks (BPRS) in terms of applying sharia principles that are not consistent there is still not yet under the fatwa DSN-MUI which has become OJK regulations. Research on the BPRS Amanah Ummah was conducted on capital assets. This research was conducted with a juridical-normative approach that places the laws and regulations as the object of research originating from primary, secondary, and tertiary laws. Primary data were obtained through direct interviews with BPRS Amanah Ummah. While secondary data obtained from legislation, books, journals, and other documents. The results of the study concluded that the BPRS Amanah Ummah financing products have consistently applied the principles of Islamic banking based on the DSN-MUI Fatwa.Keywords: Excellence, Implementation, SRB, DSN Fatwa, OJK AbstrakBank Pembiayaan Rakyat Syariah (BPRS) adalah bank yang melaksanakan kegiatan usaha berdasarkan prinsip syariah yang dalam kegiatannya tidak memberikan jasa dalam lalu lintas pembayaran. Tren perkembangan BPRS sejak diberlakukan undang-undang perbankan syariah terus meningkat. Seluruh kegiatan BPRS wajib menerapkan prinsip-prinsip syariah yang difatwakan oleh Dewan Syariah Nasional Majelis Ulama Indonesia (DSN-MUI). Setelah dibentuk Otoritas Jasa Keuangan (OJK) saat ini telah terjadi perubahan regulasi bahwa pemberlakuan fatwa DSN-MUI harus masuk ke dalam Peraturan Otoritas Jasa Keuangan (P-OJK). Permasalahan perbankan syariah yang timbul saat ini secara umum terjadi pada Bank Umum Syariah (BUS), Unit Usaha Syariah (UUS), maupun pada Bank Pembiayaan Rakyat Syariah (BPRS) dalam hal penerapan prinsip-prinsip syariah yang belum konsisten, bahkan masih ada yang belum sesuai dengan fatwa DSN-MUI yang sudah menjadi peraturan OJK. Penelitian terhadap BPRS Amanah Ummah ini dilakukan pada aset permodalan. Penelitian ini dilakukan dengan pendekatan yuridis-normatif yang menempatkan peraturan perundang-undangan sebagai objek penelitian yang bersumber dari hukum primer, sekunder, dan tersier. Data primer diperoleh melalui wawancara langsung dengan pihak BPRS Amanah Ummah. Sedangkan data sekunder diperoleh dari peraturan perundang-undangan, buku, jurnal, dan dokumen lainnya. Hasil penelitian menyimpulkan bahwa dari produk-produk pembiayaan BPRS Amanah Ummah telah menerapkan prinsip-prinsip perbankan syariah berdasarkan Fatwa DSN-MUI secara konsisten.Kata Kunci: Keunggulan, Penerapan, BPRS, Fatwa DSN, OJK

scholarly journals Profit Loss Sharing (PLS) and Its Implementation in Indonesian Islamic Banking

2020 ◽  
Vol 9 (1) ◽  
pp. 121
Author(s):  
Suryani Suryani ◽  
Muhammad Anwar Fathoni
Keyword(s):  
Data Mining ◽  
Financial Services ◽  
Statistical Data ◽  
Secondary Data ◽  
Revenue Sharing ◽  
Primary Data ◽  
Islamic Banking ◽  
Scientific Journals

Writing this article aims to determine the concept of Profit Loss Sharing (PLS) and its implementation in Indonesian Islamic banking. The data used in this article is sourced from secondary data from books, scientific journals, sharia banking statistical data released by the Financial Services Authority (OJK) and other sources relevant to the focus of the discussion. The author finds that the application of the concept of profit loss sharing in mixing agreements is the antithesis of the concept of interest which has dominated the banking world. However, in practice, not all Islamic banking applies this concept. Even Islamic banking in Indonesia is more likely to choose revenue sharing to safeguard the interests of its customers. The author only uses secondary data to measure the implementation of PLS in Islamic banking, so that further research will be better if conducting primary data mining to get a broader picture related to the theme of the article.

scholarly journals Digital Banking and Financial Inclusion of Women Enterprises in Narok County, Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 28-41
Author(s):  
Kisotu David Melubo ◽  
Salome Musau
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Target Population ◽  
Online Banking ◽  
Financial Inclusion ◽  
Primary Data ◽  
Mobile Banking ◽  
Banking Services ◽  
Financial Exclusion ◽  
The Many

Financial inclusion is an important step in development, as access to finances can help the women to build money and lift themselves out of poverty. Lack of financial inclusion among women in Narok County is one of the many factors leading to financial exclusion and an introduction of digital banking is the remedy to its problems. Financial inclusion of women contributes immensely in empowering them. Digital banking in Kenya has been characterized by rapid technological change in the finance sector that has led to the development of mobile banking, online banking, ATMs and agency banking. The banking sector has undergone substantive transformation particularly from the year 2007. This study sought to establish the effects of digital banking and financial inclusion of Women Enterprises in Narok County, Kenya. Financial inclusion includes the provision of affordable financial services, which includes; access to payments and remittance facilities, savings, loans and insurance services by the formal financial system to those who tend to be excluded The study was anchored on finance growth theory and financial asymmetric theory. This study used descriptive research design and data was collected from the target population of all the 184 women owned enterprise in Narok County, Kenya. For this study census sampling was adopted to where all the population will be included in study since the number of target population is 184. Primary data was collected using a semi structured questionnaire to be administered to the women business owner through face to face interviews. The collected data was analysed using descriptive statistics methods; mean, mode, median, standard deviation, percentages and frequencies. Inferential statistical methods included multiple regression analysis was used to establish the relationship among variables. It was established that digital banking services significantly and positively influenced financial inclusion of women enterprises in Narok County. The study concluded that agency banking, mobile banking, online banking and ATM services significantly influenced the access and use of banking services by the locally based women enterprises in Narok County. It was further concluded that the women enterprises did not adequately use online banking due to limited literacy level, computer proficiency and internet availability. The study recommends that the available financial sector players in Narok County needs to sensitize SMEs especially women-owned to ensure that they are aware of the digital services available to be in the loop to enhance financial inclusion. The study recommends that the available digital banking providers need to improve formation of groups among the users of the services to enable improve usability. The study recommends further that the women enterprises managers and proprietors need to be in groups to develop each other and assist access, use and improve digital banking and financial inclusion.

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