FINANCIAL INCLUSION IN NORTHEAST INDIA:A SWOT ANALYSIS

2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Deepjyoti Choudhury
Keyword(s):  
Economic Development ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Swot Analysis ◽  
Financial Institution ◽  
Northeast India ◽  
Financial Inclusion ◽  
Rural People ◽  
Literacy Rate

Accumulation of human capital has always paved the way for economic development provided the accumulation and savings are organised and structured by a formal credit institution. But regions where majority of the populations reside in rural areas, with low infrastructure and literacy rate, the benefits of a formalised credit institutions have always not been tasted. Timely availability of credit and timely saving of the capital is of great necessity for the wellbeing of weak and deprived section of the population and thereby creating greater economic development. For instance the Credit-Deposit ratio of Northeast India to Rest of India is 35:73, which is a clear indicator of unutilised bank's resources in Northeast India. Financial Inclusion has been thought as an answer to bank the unbanked and bring the weaker sections of society specially the rural people under the umbrella of authorised financial services provided by regulated financial institutions. The technological revolution and the vast use of ICT in banking sector has paved a way for the financial institution and are adopting branchless banking as their strategy. Branchless banking is expected to make their efforts successful towards financial inclusion. In this paper attempt has been made to understand the concept of Branchless banking and how it can be implemented in Northeast India.

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 Effects of Financial Dualism and Inclusion on Economic Development in Nigeria

2020 ◽  
pp. 1-13
Author(s):  
G. I. Anyanwu ◽  
P. A. Okere ◽  
N. F. Adioha
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Financial Services ◽  
Qualitative Data ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Least Square ◽  
Primary Sources ◽  
Ordinary Least Square ◽  
Monetary Authorities

This study examined the effects of financial dualism and inclusion on the economic development in Nigeria. Data were obtained principally from primary sources, interviews and questionnaires.  The sample for the study consisted of one hundred (100) respondents randomly selected from shop owners in Eke Ugwu market, in owerri capital territory. The qualitative data were transformed into quantitative form with the use of likert scale. The ordinary least square (OLS) estimation technique was employed to test for relationship in the model. The study revealed a significant relationship between financial inclusion and economic development in Nigeria. The study further revealed that the delivery of quality financial services at affordable price and terms to the generality of the populace especially the disadvantaged and lower income segment of the society is the essence of financial inclusion. This study therefore recommends that the monetary authorities should ensurethat banks offer prompt and timely services. Neck-to-measure services should be produced and made available to customers at affordable prices.  Again, Banks and other financial institutions should design appropriate packages that will assist in collaborating with the informal financial institutions so that the funds so far mobilized by them are integrated into the banking sector. This will reduce the volume of currency outside the banking sector.

Tapping the Untapped (Financial Inclusion)

2016 ◽  
Vol 1 (2) ◽  
Author(s):  
Atul Kumar Srivastava
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Andhra Pradesh ◽  
Service Providers ◽  
Financial Service ◽  
Financial Inclusion ◽  
Gdp Growth ◽  
Rural People ◽  
Agrarian Economy ◽  
Opening Up

As far as our economic growth is concerned, we are growing rapidly .This statement is easily supported by GDP growth. Is this the growth of our whole economy? Ours is an agrarian economy and if people living in those rural areas are not being taken into account properly, then, it will be wrong to say that we are growing rapidly. A major portion of India lives in villages and that area is being excluded by the financial service providers. This article talks about the potential areas i.e. states regarding financial inclusion. This article tries to look into the problems faced by the bankers while opening up a branch in rural areas and problems the faced by customers. Ultimately, financial service providers have to foray into that field. This article gives an insight regarding financial inclusion. An attempt is being made by RBI , they have given some policies in which it is written clearly that Financial inclusion should be there. But it will be worth while to see the supply barriers in this field. The paper talks about those aspects too. This article discusses the issues raised in Andhra Pradesh recently, which should already be avoided by financial service providers. After all, the efforts of financial service providers should be more target oriented and packed with some strategy regarding financial inclusion and this paper just focuses upon some strategies. A survey of a rural area in Bareilly district was made to know the concerns of rural people regarding financial services. This paper is an attempt to peep into the different facets of financial inclusion but it will become effective only then, when policymakers show their required concern over it.

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.

Marketing of Microfinance for Rural Women

2017 ◽  
pp. 153-184
Author(s):  
Pallavi Mathur ◽  
Parul Agarwal
Keyword(s):  
Economic Development ◽  
Transaction Cost ◽  
Rural Women ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Rural Economic Development ◽  
The Poor ◽  
High Transaction Cost ◽  
Poor Population

Microfinance, the provision of financial services to poor and under-served societies, has emerged as one of the most promising possibilities for stimulating rural economic development through local enterprise. Banking sector in India has proved to be one of the largest sectors in the Indian financial system. Earlier banks restrained from lending to the poor due to high transaction cost and high credit risk involved in dealing with such kind of population. Microfinance programme aims at reaching out to the poor population especially women thus fulfilling the objectives under the financial inclusion.

scholarly journals A Study on the Impact of Schemes and Programmes of Government of India on Agriculture to Increase Productivity, Profitability, Financial Inclusion, and Welfare of Farmers to Transform them into Modern Society

2021 ◽  
pp. 231-243
Author(s):  
Mahesh K. M. ◽  
P. S. Aithal ◽  
Sharma K. R. S.
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Modern Society ◽  
Modern Technology ◽  
Mobile App ◽  
Financial Inclusion ◽  
Agricultural Products ◽  
Theoretical Concepts ◽  
The Government ◽  
The Impact

Purpose: The foremost intent of this research article is to create awareness about various schemes for the productive sector of agriculture. Through this study, the level of performance of these agricultural schemes and programmes were analysed that will be helpful for the attainment of financial inclusion. Hence it is necessary to know about various schemes and their making to connect the beneficiaries. Agriculture is the basic source of food supply, production, processing, promotion and distribution. Agricultural products contribute to Gross Domestic Product (G.D.P.) and generate employment in rural areas. They transform the lives of the farmers in modern society. The government of India has introduced Minimum Support Price (MPS), MIF, PMKSY, PMFBY, e-NAM, PM-KISAN, PMJDY, PM-KUSUM, PKVY, NAMS, and MGNREGS. The mobile app KisanSuvidha and innovative programmes like Kisan Rail, KrishiUdaan double the farmers’ Income (DFI). These help in transforming village economy, coverage of irrigation, crop insurance, and stabilizing the income. They also ensure financial support, flow of credit and Direct Benefit transfer of subsidies and funds to beneficiaries. Adopting modern technology, farm-based activity, poultry, dairy, forestry, beekeeping and with the support of SHGs which will directly impact productivity, profitability, financial inclusion, and the welfare of farmers in the 21st century and development of the country’s economy. Design/ methodology/approaches: This study is all about the theoretical concepts based on analysis of various schemes and interconnect. Findings and results: This study reveals that the effectiveness of various agricultural programs and also identifies the benefits and beneficiaries of these schemes. Under this research, various financial services, subsidies, funds released, online platform for agricultural products, funds for micro-irrigation, and so on benefits provided by the government of India were studied. Originality/value: Analysed the various schemes and compelled its beneficiaries and develop a modern to achieve financial inclusion and economic growth through the study. Type of Paper: Research Analysis.

scholarly journals Transformation of digitalization system of business processes at VTB Bank, PJSC

2021 ◽  
Vol 2021 (2) ◽  
pp. 70-79
Author(s):  
Viktoria Valerievna Mandron ◽  
Nikita Sergeevich Budaev ◽  
Alice Aleksandrovna Pototskaya ◽  
Tatiana Nikolaevna Sidorina
Keyword(s):  
Financial Services ◽  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Financial Institution ◽  
Block Diagram ◽  
It Architecture ◽  
The People ◽  
Technological Platform

The article is focused on the increasing role of modern information technologies in banking sector. Today, the informatization process includes not only developing a safe and modern infrastructure, networks, data processing centers, but also creating the so-called digital economy on the basis of this infrastructure, which will bring new sources of income to the state and the people. The banking sector of the Russian Federation is most actively involved in the process of solving this problem. The development of automated business processes in VTB Bank (PJSC) is considered in detail. There is presented an overview of the bank's information technologies in such key areas as artificial intelligence, big data analysis, machine learning, virtual and augmented reality, optical recognition, robotics, robotization of process, blockchain, and chat bots. The dynamics of the main indicators of a financial institution activity is analyzed, an assessment of indicators characterizing the dynamics of changes in capital, net profit and profitability of the bank is presented. It has been stated that the strategic directions for the development of business processes in VTB Bank (PJSC) are constructing an advanced operational and technological platform, increasing the level of digitalization of the banking business, leadership in the financial services market in a number of ecosystems, developing a highly productive organization and culture, as well as growing the customer-centricity of business models. The block diagram of the VTB Bank transformation for 2020–2022 and the target version of the IT architecture of the bank have been illustrated. Changes in the IT architecture are one of the stages of the bank's digital transformation strategy. According to the objectives of the strategy of VTB Bank (PJSC), 100% of financial services should become available to customers online.

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

The First Android Based Sharia Fintech Innovation In Indonesia To Increase Inclusive and Literate on Society’s Finance

2021 ◽  
Vol 1 (2) ◽  
pp. 01-19
Author(s):  
Suhartono Suhartono ◽  
Juniato Sidauruk ◽  
Octa Pratama Putra ◽  
Syamsul Bahri ◽  
Martias Martias ◽  
...  
Keyword(s):  
Financial Services ◽  
Research Method ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Descriptive Research ◽  
Technology Industry ◽  
Technical Procedure ◽  
Interview Session ◽  
Personal Finances ◽  
Financial Technology

Technology has become the part of today’s people life. Then, it is actually close to the application of it. Absolutely, it has example; such as the electricity for having more sophisticated in financial technology (Fin-Tech). The simplicity and speed of this technology have led people to adopt it in everyday’s life. One of the innovations in developing business and the economy, especially in the banking sector, is currently to develop Fintech (Financial Technology) which is able to facilitate all types of buying and selling transactions, investments and fundraising. Next, the purpose of this study is to explain and provide an understanding of the technical, procedures and benefits of the application, it is called Sharia FinTech. Then, it is also to contribute to the literature on the capacity of the latest technological and non-technological innovations. The research method used is descriptive research method with a qualitative approach. It is to describe and explore the phenomena in the form of engineering human innovation in the financial technology industry. It is done by taking into account the characteristics, quality, and interrelationships between activities It has several aspects; they are: conducting the observation, having an interview session, creating the documentation, and the last one is doing the Literature review. The result of this study is to increase the knowledge, skills and confidence of the community in managing personal finances to be better and to provide access to be having convenient and accountable financial services. Afterwards, this study linits on explaining and providing an understanding of the technical, procedure and benefits of Sharia Fintech for all people in need. Thence, the limitation of the research only discusses the role of Islamic Fintech in increasing the public financial inclusion and literacy. As for the the next researchers, they can be even wider by adding the collaboration of fintech and the banking world. The novelty of this research is the use of the android application as a digital platform in financial inclusion and literacy.

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.

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