scholarly journals FINANCIAL INCLUSION AND DEEPENING IN NIGERIA: THE CONTRIBUTION OF JAIZ BANK

2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Yaaba Baba Nmadu ◽  
Abubakar Mika’ilu
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Poverty Reduction ◽  
Adult Population ◽  
Financial Inclusion ◽  
Rapid Expansion ◽  
Easy Access ◽  
Financial Deepening ◽  
Formal Sector ◽  
Economic Activities

The Central Bank of Nigeria in 2012, as a sign of her commitment to the 2011 Maya Declaration, developed a financial inclusion strategy for Nigeria. The aim of the strategy, amongst others, was to reduce the percentage of adult Nigerians excluded from financial services from 46.3 percent as at 2010 to 20.0 percent by 2020 with the view to enabling them to have access to financial services, engage in economic activities and contribute to the growth and development of the country. The number of Nigerians that are included in the formal sector shall then increase from 30.0 percent in 2010 to 80.0 percent by the year 2020. By this, Nigeria had committed herself to reducing the population of unbanked and under-banked adults by about 50.0 percent by the year 2020. Maya declaration recognises the criticality of inclusive financing to not only inclusive growth but also global financial stability, financial deepening and poverty reduction for about 2.5 billion unbanked adults across the globe. This study is a maiden attempt to explore the contribution of the recently established Islamic bank (Jaiz bank) in Nigeria towards the reduction of both the unbanked and under-banked adult population since its inception in 2012. The study used an exploratory approach and concludes that Jaiz bank is immensely helping the country in her quest to satisfy the Maya commitments. The study recommends, among others that special consideration is given to banks of such standings to aid rapid expansion of access to finance for Nigerians who ordinarily wouldn’t have easy access to banking facilities.=============================================================Inklusi Keuangan dan Pendalamannya di Nigeria: Kontribusi Bank Jaiz. Sebagai bagian dari komitmennya terhadap Deklarasi Maya 2011, Bank Sentral Nigeria pada tahun 2012 mengembangkan strategi inklusi keuangan untuk Nigeria. Tujuannya, antara lain, adalah untuk mengurangi persentase jumlah orang dewasa di Nigeria yang belum tersentuh jasa keuangan dari 46,3 persen pada 2010 menjadi 20,0 persen pada 2020 sehingga memungkinkan mereka memiliki akses ke layanan keuangan, berperan dalam kegiatan ekonomi dan berkontribusi pada pembangunan negara. Harapannya, jumlah orang Nigeria yang masuk dalam sektor formal akan terdongkrak dari 30,0 persen pada tahun 2010 menjadi 70,0 persen pada tahun 2020. Untuk itu, Nigeria telah berkomitmen untuk mengurangi jumlah orang yang unbanked dan under-banked sekitar 50,0 persen pada tahun 2020. Deklarasi Maya mengakui pentingnya pembiayaan inklusif yang ditujukan tidak hanya untuk pertumbuhan inklusif tetapi juga stabilitas keuangan global, pendalaman keuangan, dan pengurangan kemiskinan bagi sekitar 2,5 miliar orang yang unbankable di seluruh dunia. Penelitian ini adalah upaya perdananya untuk mengeksplorasi kontribusi bank non-bunga (Jaiz bank) yang baru didirikan di Nigeria terhadap pengurangan jumlah orang yang unbanked dan under-banked sejak didirikannya pada tahun 2012. Penelitian ini menggunakan pendekatan eksplorasi dan menyimpulkan bahwa Bank Jaiz memiliki kontribusi yang sangat besar dalam membantu Nigeria untuk memenuhi komitmennya terhadap deklarasi Maya. Kajian ini, antara lain, merekomendasikan bahwa pertimbangan khusus harus diberikan kepada bank-bank yang mempunyai peran sejenis untuk mempercepat perluasan akses keuangan bagi masyarakat Nigeria yang selama ini kesulitan dalam mengakses fasilitas perbankan.

scholarly journals Relationship between Sustainable Financial Services and Poverty Reduction in Nigeria - Evidence from Error Correction Model

2013 ◽  
Vol 2 ◽  
pp. 39-50
Author(s):  
Taiwo Adewale Muritala ◽  
Ismail O. Fasanya
Keyword(s):  
Error Correction ◽  
Financial Services ◽  
Poverty Reduction ◽  
Critical Role ◽  
Final Analysis ◽  
Error Correction Model ◽  
Financial Inclusion ◽  
Poor People ◽  
Financial Deepening ◽  
Correction Model

The inflexibility of poverty is being met with increasing impatience from governments of diverse ideologies, donors and other international agencies. Recent data compilations show that many poor and non-poor people in many developing countries face a high degree of financial exclusion and high barriers in access to finance. Therefore, financial inclusion plays a critical role in reducing poverty. Hence, this paper examines the relationship between sustainable financial services and poverty reduction in Nigeria from 1965 - 2010 using Error Correction Model (ECM). It was observed that total value prime lending rate, financial savings, credit to private sector and rate of inflation all have significant impact on the financial deepening. In the final analysis, the study concludes that financial inclusion tends to strengthen financial deepening and provide resources to the banks to expand credit delivery thereby leading to financial development. The study therefore recommends that these findings, in turn, will inform the policy makers and stakeholders to build more inclusive financial systems

scholarly journals FINANCIAL INCLUSION: A PRELUDE TO ECONOMIC STATUS OF VULNERABLE GROUP

2016 ◽  
Vol 4 (12) ◽  
pp. 147-154
Author(s):  
Mukesh Kumar Sharma
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Financial Stability ◽  
Financial Inclusion ◽  
Current Status ◽  
Easy Access ◽  
Resource Base ◽  
Banking Services ◽  
The Government

India is a country where a sizeable amount of population lives in rural areas. They are engaged in agriculture and allied activities. Most of the people living in rural areas are poor. They do not have any access to the banks. The awareness and access of the poor to the banking services is important for the alleviation of the poverty. Their access to the banking services will contribute a lot to the growth and development of our country’s economy. Financial inclusion is a great weapon to overcome the financial backwardness as well as the establishment of good governance.It broadens the resource base of the financial system by developing a culture of savings among large segment of rural population, disadvantaged group and plays an essential role in the process of economic development. The Government of India and the Reserve Bank of India (RBI) have been making concentrated efforts periodically to overcome such vicious problems by promoting Financial Inclusion, being one of the important national objectives of the country. Since first phase of nationalization (1969) GoI continuously promoting financial inclusion through self-help groups, no frills account, simplification of KYC, Business correspondents etc., but no palpable effect could be seen in the plight of these financially vulnerable people. To mitigate this long drawn financial sufferings, Prime Minister Narendra Modi announced a new scheme in his Independence Day speech on 15th Aug 2014 called Pradhan Mantri Jan DhanYojana (PMJDY). Mission of PMJDY is to ensure easy access of financial services for the excluded section i.e. weaker section and the low income group. This effort will certainly go a long way in promoting economic growth and reducing poverty, while mitigating systematic risk and maintaining financial stability. This article focuses on the RBI, GoI initiatives, current status and future prospects of financial inclusion in India on the basis of facts and data provided by various secondary sources. It is concluded that financial inclusion shows positive and valuable changes.

FINANCIAL STABILITY AND FINANCIAL INCLUSION: THE CASE OF SME LENDING

2018 ◽  
Vol 63 (01) ◽  
pp. 111-124 ◽  
Author(s):  
PETER J. MORGAN ◽  
VICTOR PONTINES
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Stability ◽  
Developing Economies ◽  
Empirical Studies ◽  
Bank Lending ◽  
Financial Inclusion ◽  
Nonperforming Loans ◽  
Z Scores ◽  
Negative Impacts

Developing economies are seeking to promote financial inclusion, i.e., greater access to financial services for low-income households and firms. This raises the question of whether greater financial inclusion tends to increase or decrease financial stability. A number of studies have suggested both positive and negative impacts on financial stability, but very few empirical studies have been made. This study focuses on the implications of greater financial inclusion for small and medium-sized enterprises (SMEs) for financial stability. It estimates the effects of measures of the share of bank lending to SMEs on two measures of financial stability — bank nonperforming loans and bank Z scores. We find some evidence that an increased share of lending to SMEs aids financial stability by reducing non-performing loans (NPLs) and the probability of default by financial institutions.

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 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.

scholarly journals Empowering Women through Financial Inclusion in Zimbabwe Is the Gender Gap Not Encroaching This Noble Cause?

2021 ◽  
Vol 8 (1) ◽  
pp. 53-64
Author(s):  
Lettiah Gumbo ◽  
Precious Dube ◽  
Muhammad Ridwan
Keyword(s):  
Economic Growth ◽  
Gender Gap ◽  
Financial Services ◽  
Poverty Reduction ◽  
National Development ◽  
Financial Inclusion ◽  
Financial Products ◽  
Research Findings ◽  
The Government ◽  
Financial Awareness

One of the most effective catalysts of economic growth of any nation is obviously financial inclusion. However, in developing countries such as Zimbabwe gender gap is still an impediment to the achievement of financial inclusion for all. Research findings for this paper show that, increasing women’s financial opportunities and financial awareness on how to access financial products and services will go a long way in reducing the gender gap. Furthermore, increasing access to and use of quality financial products and services is essential to inclusive economic growth and poverty reduction. Although the government of Zimbabwe is taking steps to increase women financial inclusiveness, research shows that women in Zimbabwe trail behind men in as far as access to financial services is concerned. Zimbabwean communities remain dominantly patriarchal and women are always lagging behind in developmental projects meant for their empowerment. This paper seeks to assess the implementation of women’s financial inclusion highlighting opportunities and barriers such as the gender gap and how this may be overcome. The study is qualitative in nature and therefore makes use of interviews and questionnaires for data collection. It is envisioned by the researchers that the research findings will be beneficial to women; their empowerment and development and national development. It is hoped to change the way in which the banking and financial sectors deal with women’s financial inclusion for the betterment of their livelihoods.  Furthermore, women’s financial empowerment will improve livelihoods of many families given the caring nature of mothers, sisters, aunts and grandmothers.

Financial Inclusion in India

2016 ◽  
pp. 95-104
Author(s):  
Rohit Bhattacharya
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Significant Proportion ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Working Paper ◽  
Road Map ◽  
The Poor ◽  
Financial Exclusion ◽  
The World

The concept of Financial Inclusion is not a new one. It has become a catchphrase now and has attracted the global attention in the recent past. Lack of accessible, affordable and appropriate financial services has always been a global problem. It is estimated that about 2.9 billion people around the world do not have access to formal sources of banking and financial services. India is said to live in its villages, a convincing statement, considering that nearly 72% of our population lives there. However, a significant proportion of our 650,000 odd villages does not have a single bank branch to boast of, leaving swathes of the rural population in financial exclusion. RBI has reported that the financial exclusion in India leads to the loss of GDP to the extent of one per cent (RBI, Working Paper Series (DEPR): 8/2011). Financially excluded people, consistently, depend on money lenders even for their day to day needs, borrowing at excessive rates to finally get caught in a debt trap. In addition, people in far-off villages are completely unaware of financial products like insurance, which could protect them in adverse situation. Therefore, financial inclusion is a big necessity for our country as a large chunk of the world's poor resides here. Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. Present paper is an attempt to highlight the present efforts of financial inclusion in India its future road map, its challenges etc.

scholarly journals ANALISIS FINANCIAL INCLUSION TERHADAP PEMBERDAYAAN MASYARAKAT MISKIN DI MEDAN (STUDI KASUS PEMBIAYAAN MIKRO SS II DI BANK SUMUT SYARIAH)

2017 ◽  
Vol 2 (1) ◽  
Author(s):  
Hairatunnisa Nasution ◽  
Yasir Nasution ◽  
Muhammad Yafiz
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Financial Inclusion ◽  
Government Programs ◽  
The Public ◽  
The Poor ◽  
Lofty Goal ◽  
Inclusion Theory ◽  
Islamic Economic ◽  
Economic Understanding

This research aims to analyze the financial inclusion towards the empowerment of the poor in Medan through financing Sumut Sejahtera of the Bank Sumut Syariah. More specifically the research aims to know 1) the concept of financial inclusion that is implemented as a means of expanding access to financial services of banks and non-banks, 2) the application of the financial inclusion  Bank Sumut Syariah. Bank Sumt Syariah have significant role in the economic development of the community through a variety of financing micro, Financing of the Sumut Sejahtera. This financing facility has a lofty goal given to the community pre-prosperous society who have a business but not bankable feasibility so as to be worthy of being a customer of the bank, as well a improve people’s lives and help government programs in the framework of poverty reduction. The applicaton of financial inclusion on the financing Sumut Sejahtera of the Bank Sumut Syariah has been very clear benefits in the economic society prosper who enforce the interests for the public good. It is a basic principle in Islamic economic maqashid al-syariah. For financial inclusion theory maqashid al-syariah is one of the logical effort that must be applied as a consequence of the economic understanding of justice on one side and of religious on the other side.

The Effect of Penetration, Availability, and Usage on Bank Profit

2021 ◽  
Vol 5 (1) ◽  
pp. 134-140
Author(s):  
Rizky Wulan Suci ◽  
Brady Rikumahu
Keyword(s):  
Financial Services ◽  
Fixed Effects ◽  
Large Scale ◽  
Quantitative Methods ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Easy Access ◽  
Panel Data Regression ◽  
Bank Profits

National banking profit growth has been fairly good, seen from the results of the third quarter of 2017, large-scale banks that dominate the market have seen a significant increase. The increase in profit was due to the ability of banks to reduce costs and reduce the provision for bad loans. Financial inclusion, namely efforts to provide easy access, availability, and use of the formal financial system for all members of the economy without social exclusion. Financial inclusion has 3 indicators, namely penetration, availability, and usage. This study aims to determine the effect of penetration, availability, and usage on bank profits at 10 conventional commercial banks listed on the IDX. The independent variables are penetration, availability, and usage. The dependent variable is bank profit. This research uses quantitative methods and the purposive sampling technique. The author uses descriptive analysis and panel data regression analysis using fixed effects. The results showed that penetration, availability, and usage did not have a significant positive effect on bank profits. Banking companies should provide more effective financial services so that they benefit customers and attract investors.

scholarly journals FINANCIAL INCLUSION AS A DRIVER PROVIDING FINANCIAL SECURITY IN UKRAINE

2019 ◽  
pp. 43-52
Author(s):  
O. Zakharkin ◽  
V. Boronos ◽  
L. Zakharkina ◽  
O. Tverezovska
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Stability ◽  
Shadow Economy ◽  
Financial Inclusion ◽  
Financial Security ◽  
Credit System ◽  
The Public ◽  
Theoretical Approaches ◽  
Business Confidence

Theoretical approaches to defining the concept of financial inclusion are considered. It is determined that financial inclusion and the public and business confidence in the financial and credit system are driving factors for directing savings into the investment sector, reducing the level of shadow economy, increasing the financial stability of economic entities, and, as a consequence, increasing the level of government revenues and financial security ensuring. Theoretical and methodological foundations of financial inclusion spreading as a driver of financial security of Ukraine are investigated. Key words: financial inclusion, financial security, financial literacy, financial services.

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