scholarly journals Determining the Financial Inclusion Output of Banking Sector of Pakistan—Supply-Side Analysis

Economies ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 42
Author(s):  
Fareeha Adil ◽  
Abdul Jalil
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Time Series Data ◽  
Financial Inclusion ◽  
Series Data ◽  
Supply Side ◽  
Inclusion Process ◽  
Consumer Loans ◽  
The People ◽  
The Times

Financial inclusion is the process of including the people who lack formal financial services. The concept of financial inclusion emerged globally in the times of millennium and is defined as the availability and usage of formal financial services. It essentially facilitates economic growth; the financially included individuals can invest in business, education, and entrepreneurship, which can pave way to poverty alleviation and economic development. In the context of Pakistan, a developing economy of South Asia, the financial landscape presents a grim picture of financial inclusion where only 16 percent of the population is financially included. Despite the current focus of policies and regulations devoted to enhancing access to finance in Pakistan from the supply side, the current state of financial inclusion is limited. Therefore, this study investigates the financial inclusion process for Pakistan from the supply side. We analyze the supply-side dimension of access by employing econometric technique of autoregressive distributive lag (ARDL) and using time series data of banking sector of Pakistan. Our empirical findings suggest that the greater the size, geographic outreach, and demographic outreach of the banks, the greater the contribution to the financial inclusion. Additionally, improvement in soft consumer loans and increase in small-sized advances reinforces the financial inclusion process.

Access To And Usage Of Financial Services In Emerging Market Economies With Special Reference To Brics Nations

2019 ◽  
Vol 118 (4) ◽  
pp. 110-128
Author(s):  
B. VIMALA ◽  
K. ALAMELU
Keyword(s):  
Financial Services ◽  
Time Series Data ◽  
Emerging Market ◽  
Financial Inclusion ◽  
Series Data ◽  
Brics Countries ◽  
Regulatory Frameworks ◽  
Current Scenario ◽  
Annual Time Series ◽  
Annual Time

This paper analyses the financial inclusion in BRICS countries.  Is also assesses the progress, current scenario of the regulatory frameworks and various factors behind  financial inclusion.  The analysis shows that financial inclusion has been gaining momentum over time across the countries but the degree of financial inclusion varies widely.  Although much progress had been achieved, a huge work remains to be done to foster financial inclusion for inclusive growth.  The paper uses annual time series data from 2005 to 2017 to construct the financial inclusion index in BRICS countries.  The used data have been collected from the Financial Access Survey, and International Monetary Fund.

scholarly journals Financial Inclusion and Economic Growth in Nigeria

2020 ◽  
Vol 2 (2) ◽  
pp. 46-56
Author(s):  
JOSEPH BIDEMI OBAYORI ◽  
George-Anokwuru Chioma Chidinma B.
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Unit Root ◽  
Financial Services ◽  
Time Series Data ◽  
Unit Root Test ◽  
Financial Inclusion ◽  
Series Data ◽  
Order Zero ◽  
Ardl Model

Purpose: Financial inclusion entails the delivery of financial services to individuals and businesses at segments of the society at a reasonable rate that meets their desired transactions. In view of this, the paper examined financial inclusion and economic growth in Nigeria from 1981-2018. Methods: The ARDL model was used to analyze the annual time series data collected from the CBN Statistical Bulletin and the World Bank report. The augmented Dickey Fully (ADF) unit root test, to test for stationarity of the variables preceded the ARDL model.    Results: The ADF unit root test results showed that the dependent variable was stationary at order zero I(0), while the independent variables were stationary at order one I(1). Based on the first-hand results, it was revealed that both in the short-run and long-run, access and effective usage of financial services bring about a significant increase in economic growth. But per capita income has a negative but significant relationship with economic growth.  Implications: The study conforms to finance-led growth theory which averred that the financial system is a positive function of economic growth. Based on these findings, the paper recommended that more efforts needed to be done to enhance and extend financial inclusion services such as electronic transaction in the form of POS, ATM, mobile money, etc to all rural communities in Nigeria as well as financial literacy and engagement of low-income people in the formal financial services in order to increase economic growth.

scholarly journals Pengaruh Rasio Kinerja Bank Terhadap Profitabilitas Industri Bank Umum Syariah di Indonesia

2019 ◽  
Vol 5 (3) ◽  
pp. 217
Author(s):  
Felix Efendy ◽  
Salman Fathoni
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Time Series Data ◽  
Multiple Linear Regression Model ◽  
Secondary Data ◽  
Series Data ◽  
Return On Assets ◽  
Statistical Tool ◽  
Negative Effect ◽  
Positive Effect

The purpose of this study was to determine and analyze the effect of the level of bank health ratios measured by BOPO, FDR and NPF on increasing the profitability of the Sharia Commercial Bank industry in Indonesia, which is proxied by ROA. The data used in this study are secondary data including operational efficiency (BOPO), liquidity (FDR), Non Performing Finance (NPF) and Return On Assets (ROA) in the sharia commercial bank industry registered at Bank Indonesia. The data is a monthly time series data from 2015-2018 obtained through the official sharia banking statistics website, Financial Services Authority (https://www.ojk.go.id). To analyze it, researchers used a multiple linear regression model with statistical tool software EViews 9. From the observations and analysis of the data that has been done, the conclusions in this study are the BOPO, FDR and NPF on ROA which is an indicator of the Bank's health to measure profitability has a high relationship . The BOPO variable partially has a significant negative effect on profitability (ROA). FDR partially has a negative and significant effect on ROA. NPF partially has no positive effect on profitability.

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 Risk Analyses on Islamic Banks in Indonesia

2020 ◽  
Author(s):  
Dimas Bagus Wiranatakusuma ◽  
Imamuddin Yuliadi ◽  
Ikhwan Victhori
Keyword(s):  
Time Series ◽  
Financial Services ◽  
Time Series Data ◽  
Liquidity Risk ◽  
Series Data ◽  
Islamic Banks ◽  
Monthly Basis ◽  
Income Ratio ◽  
Financing Risk ◽  
Risk Vulnerability

This study aims to analyze the risks on Islamic banks in Indonesia by identifying which risk is significantly dominant in triggering other risks to happen. For that purpose, the study uses time series data on a monthly basis from 2010:M1 to 2018:M8. The data are obtained from the Financial Services Authority (OJK) Indonesia and analyzed using vector autoregression (VAR). Some variables are employed to proxy risk vulnerability including financing-to-deposit ratio (FDR) as a proxy of liquidity risk, nonperforming financing (NPF) as a proxy of financing risk, and cost-to-income ratio (BOPO) as a proxy of operational risk. The findings suggest that financing risk is the most dominant risk triggering vulnerability on Islamic banks in Indonesia.

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 Risk Based Bank Rating dalam Mengukur Tingkat Kesehatan Perbankan

2019 ◽  
Vol 3 (2) ◽  
pp. 114-123
Author(s):  
Neny Tri Indrianasari ◽  
Khoirul Ifa
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Time Series Data ◽  
Risk Profile ◽  
Series Data ◽  
Average Value ◽  
Good Corporate Governance ◽  
Source Data ◽  
The Government ◽  
Descriptive Method

The Financial Services Authority assesses the national banking industry in the better shape shown by some indicators, one of which the involvement of the Government in realizing economic growth. With the better banking conditions will marimbas Bank on growth Of Islamic Peoples. This research aims to know the level of health of bank Syariah BPR in East Java by using methods of Risk-Based Bank Rating. The assessment by the method of Risk-Based Bank Rating consists of four factors of risk profile, Good Corporate Governance, earning and capital of each bank. This research uses descriptive method quantitative approach to analyze the ratio-the ratio of the measured. The data type used is the time series data of the year 2015 – 2017. Source data obtained from the Financial Services Authority website (OJK). Data analysis techniques using analysis of Risk-Based Bank Rating (RBBR) consist of four-factor risk profile, Good Corporate Governance, earning and capital. The study concluded that the overall average value of NPF Bank Of Islamic People (BPRS) of 13.37% unhealthy, with an average overall rating Of Sharia Rural Banks ROA (BPRS) of 0.11% with the predicate less healthy and that the average overall rating Of Sharia Rural Banks CAR (BPRS) amounted to 28.47% with very healthy.

scholarly journals The impact of bank-specific and macroeconomic variables on profitability of Islamic rural bank in Indonesia

2019 ◽  
Vol 5 (3) ◽  
Author(s):  
Muhammad Sanusi
Keyword(s):  
Banking Sector ◽  
Time Series Data ◽  
Series Data ◽  
Estimation Model ◽  
Policy Makers ◽  
Vector Error Correction ◽  
Macroeconomic Variables ◽  
Vector Error ◽  
The Impact

This paper investigates the impact of bank-specific and macroeconomic variables on the profitability of Islamic rural bank (BPRS) in Indonesia. Using monthly time series data from January 2010 - December 2018. The estimation model used is a vector error correction model to analyze the long-term and short-term relationships between bank-specific and macroeconomic variables on the profitability of Islamic rural bank. The results showed that CAR and LnTA had a significant positive relationship, while NPF, BOPO and IPI had a negative and significant relationship to the profitability of Islamic rural banks. But FDR and Inflation variables are not significantly related to the profitability of Islamic rural bank. The results leave implications for policy makers, investors and banking sector managers. Based on evidence that bank profitability is more influenced by internal banks (as specific as banks), this research can help Islamic rural banks to help them understand which factors are important to be analyzed to obtain higher profitability.

scholarly journals Determinants of Exports of Pakistan: A Country-wise Disaggregated Analysis.

2011 ◽  
Vol 50 (4II) ◽  
pp. 715-732 ◽  
Author(s):  
Naseeb Zada ◽  
Malik Muhammad ◽  
Khan Bahadar
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Export Performance ◽  
Small Samples ◽  
Series Data ◽  
Supply Side ◽  
Empirical Bayesian ◽  
Demand And Supply ◽  
Price And Income Elasticities ◽  
Trade Partners

Given the importance of international trade and export performance in economic growth, this study attempts to examine the determinants of exports of Pakistan, using a time series data over the period 1975-2008. A simultaneous equation approach is followed and the demand and supply side equations are specified with appropriate variables. This is a country-wise disaggregated analysis of Pakistan versus its trade partners and the estimation strategy is based on two approaches. First we employ the Generalised Methods of Moments (GMM), which is followed by the Empirical Bayesian technique to get consistent estimates. The GMM technique is believed to be efficient for time series data provided the sample size is sufficiently large. In case of small samples, the estimates might not be precise and might appear with unbelievable sign and insignificant magnitudes. To avoid the sample bias and other problems, we employ the Empirical Bayesian technique which provides much precise estimates. The factual results obtained via the GMM technique are a little bit mixed, although most of the coefficients are found to be statistically significant and carry their expected signs. In order to compare and validate these results, the Empirical Bayesian technique is employed. This offers considerable improvement over the previous results and all the variables are found to be highly significant with correct sign across the countries concerned with the exception of a few cases. The price and income elasticities in both the demand and supply side equations carry their expected signs and significant magnitudes for the trading partners. The findings suggest that exports of Pakistan are much sensitive to changes in the world demand and world prices. This establishes the importance of demand side factors like world GDP, Real exchange rate, and world prices to determine the exports of Pakistan. On the supply side, we find relatively small price and income elasiticities. The results reveal that demand for exports is relatively higher for countries in NAFTA, European Union and Middle East regions. The study recommends particular concentration on the trade partners in these regions to improve the export performance of Pakistan. Keywords: Exports, GMM, Empirical Bayesian Method, Pakistan

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.

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