The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals The Role Of Mobile Money In Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 9 (2) ◽  
pp. 83-104
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have bank accounts, savings in financial institutions, access to credit, loans, and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals PERAN BANK WAKAF MIKRO DI MASA PANDEMI COVID-19

2020 ◽  
Vol 7 (9) ◽  
pp. 1731
Author(s):  
Yuninda Roro Yekti Nugrahana ◽  
Irham Zaki
Keyword(s):  
Financial Institutions ◽  
Qualitative Approach ◽  
Online Media ◽  
Microfinance Institutions ◽  
Case Study Method ◽  
Islamic Microfinance ◽  
The Government ◽  
Research Show

ABSTRAKPandemi COVID-19 menyebabkan banyak aspek yang terdampak hal tersebut memerlukan adanya bantuan yang disalurkan dari pemerintah dan lembaga keuangan guna membantu menyejahterakan masyarakat. Penelitian ini bertujuan untuk mengetahui peran  Lembaga Keuangan Mikro Syariah yaitu Bank Wakaf Mikro di masa pandemi covid-19. Penelitian ini menggunakan pendekatan kualitatif deskriptif dengan metode studi kasus. Hasil penelitian ini menunjukkan bahwa Bank Wakaf Mikro berperan dalam situasi pandemi covid-19 yaitu dengan melakukan sistem baru dalam pelayananya meliputi proses pendataan nasabah yang terdampak pandemi COVID-19, mempermudah angsurannya, memberikan fasilitas pemanfaatan media online sebagai pengembangan usaha, menutup proses pembiayaan tetapi memberikan fasilitas untuk diarahkan kepada lembaga keuangan lain.Kata Kunci: Bank Wakaf Mikro, Pembiayaan, Pandemi, COVID-19 ABSTRACTThe COVID-19 pandemic has affected many aspects. This pandemic requires the government and financial institutions to help people of the community. This research purpose to determine the role of Islamic Microfinance Institutions, namely Micro Waqf Banks during the Covid-19 pandemic. This research uses a descriptive qualitative approach with a case study method. The results of this research show that the Micro Waqf Bank plays a role in the Covid-19 pandemic situation, that's to do a new system in its services including the process of data collection of customers affected by the COVID-19 pandemic, facilitating installments, providing facilities for using online media as business development, closing the process. financing but providing facilities to be directed to other financial institutions.Keywords: Micro Waqf Bank, Financing, Pandemic, COVID-19

scholarly journals The advent of Islamic microfinance in Senegal

2019 ◽  
Vol 7 (3) ◽  
pp. 246-256 ◽  
Author(s):  
Massamba Souleymane SECK ◽  
Abdoulaye BIAYE
Keyword(s):  
Financial Institutions ◽  
Vulnerable Populations ◽  
Financial System ◽  
The State ◽  
Microfinance Institutions ◽  
Access To Credit ◽  
Funding Model ◽  
Role Of The State ◽  
Islamic Microfinance

In Senegal, as elsewhere in the WAEMU zone, access to credit for vulnerable micro entrepreneurs is a major concern despite the important role of traditional microfinance institutions. To effectively solve this problem, Islamic microfinance has been identified as an alternative offer, alongside conventional finance in order to give access to bank accounts to those underprivileged people that have not been sufficiently served by financial institutions. Thus, this article aims to study the advent of Islamic microfinance in Senegal. To do this, our research focuses on the history and role of the State of Senegal in the promotion of Islamic microfinance to finally present the characteristics of this new funding model for vulnerable populations often excluded from the traditional financial system.

scholarly journals Securitization: An Alternative Funding Mechanism for the Microfinance Institutions

2018 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Shahadat Hossain ◽  
Rubaiyet Hasan Khan
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Cross Border ◽  
Alternative Funding ◽  
Funding Mechanism ◽  
The Poor

Despite microfinance has been widely appreciated as an informal financial mechanism to provide financial services to the poor people in developing countries, this sector is still lacking behind in fulfilling the demand gap due to the dearth of adequate funds. Securitization opens a new horizon that overcomes the funding barriers of microfinance through which the top tier Microfinance Institutions (MFIs) can accumulate funds to enlarge their portfolio without issuing any debt or equity. This paper is a desk study that synthesizes how securitization can be used in the funding of the MFI portfolio and what are the benefits and risks associated with securitization of microfinance portfolio. As a case study, we use the two examples of cross-border securitizations in the microfinance industry to diagnose the role of securitization in microfinance.

scholarly journals The Role of Service Promotional Mix on Customer Satisfaction; Case Study of Agriculture and Rural Development Bank in Djelfa

2021 ◽  
Vol 3 (4) ◽  
pp. p12
Author(s):  
Siham Gourida
Keyword(s):  
Customer Satisfaction ◽  
Financial Institutions ◽  
Banking Sector ◽  
Personal Selling ◽  
Competitive Environment ◽  
Development Bank ◽  
Banking Services ◽  
Promotional Efforts

Now days, the issues of promotional efforts of banking services are becoming more  complicated, in today’s competitive environment, in terms of competing effectively with other financial institutions. In banking sector communication elements are especially important, they help to create powerful images, confidence and a sense of reliability to achieve customers’ satisfaction.The main purpose of this study is to reach a better understanding of the promotion’s strategies in financial institutions. In order to reach this target we’ve conducted a questionnaire for clients of our case study bank, to examine the role that the promotion mix components play in terms of reaching the bank customers’ satisfaction. The results show that the personal selling plays an important role on achieving customer satisfaction.

Shriram Transport Finance Corporation Ltd: Do Proxy Advisors Really Protect Non-promoters’ Interests?

2021 ◽  
pp. 227797792110401
Author(s):  
Abhishek Sinha ◽  
Suresh Kerani
Keyword(s):  
Financial Institutions ◽  
Research Question ◽  
Shareholder Activism ◽  
Agency Cost ◽  
Annual General ◽  
Minority Shareholders ◽  
General Body ◽  
Quantitative Metrics

Research Question: What is the role of Proxy Advisory Firms in protecting the interests of the non-promoter shareholders? Links to theory: This case study demonstrates how agency cost type 2 may lead to a conflict of interest between the promoters and the financial institutions. It also takes into consideration how the information asymmetry can be alleviated using proxy advisory services. Phenomenon studied: The case study explores the role of proxy advisory firms in influencing the votes of non-promoter shareholders at a general body meeting and its impact on the passage of resolution. Case Context: The case explores the role of shareholder activism in general and proxy firms in particular to protect the interests of minority shareholders at STFC where financial institutions have substantial stake vis-a-vis the promoters. Findings: The case study findings suggest that proxy advisory firms have now earned the confidence of the financial institutions and non-promoter investors. This adds vital fire power to the shareholder activism movement in India. However, the company’s stance that the report was based on quantitative factors and Puneet Bhatia’s contribution has been ignored calls for a more robust method of arriving at recommendations. The role of TPG in directing Puneet not to join should also be commended. Discussion: The case study examines in detail the growing influence of proxy advisory firms on voting by financial institutions in annual general body meetings. It raises the issue of whether quantitative metrics such as number of meetings attended can overshadow the qualitative inputs and contributions made by a director. The need for financial institutions to think beyond their interests and consider actively recommendations by proxy advisory firms is also highlighted. Are minority shareholders’ concerns now being better addressed in annual general body meetings is another development the case throws light on. Corporate governance norms in the context of roles and duties of directors is also touched upon.

scholarly journals Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions

2021 ◽  
Vol 13 (9) ◽  
pp. 5055
Author(s):  
John Sseruyange ◽  
Jeroen Klomp
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Legal Status ◽  
Agricultural Sector ◽  
Banking System ◽  
Fe Model ◽  
Microfinance Institutions ◽  
Natural Event ◽  
Negative Effect

In this study, we explore whether microfinance institutions (MFIs) can mitigate the adverse macroeconomic consequences of natural disasters. The provision of capital immediately following a natural event is recognized as one of the necessary conditions for a fast economic recovery. However, one concern is that a large majority of natural disasters occur in developing countries where households and the private sector have only limited access to the formal banking system. As an alternative, MFIs may fill up this gap in providing liquidity in the form of microcredit. The existing evidence on how MFIs respond to disaster effects is foremost based on case and micro-level evidence. In turn, the focus of this study is more on the macro impact of MFI activities after a natural disaster. Based on the finding obtained from an OLS-FE model using an unbalanced panel considering more than 80 developing countries and emerging economies, we can conclude that natural disasters harm macroeconomic performance primarily through their effect on the agricultural sector. However, access to lending facilities from MFIs mitigates a large part of this negative effect. Moreover, the extent to which MFIs are able to mitigate these effects depends to a great extent on their nature, i.e., their organizational structure, profitability, legal status, age, and the number of clients they serve.

University as a vehicle to achieve social innovation and development: repositioning the role of the university in the society

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lwando Mdleleni
Keyword(s):  
Local Community ◽  
Social Innovation ◽  
Research Question ◽  
Academic Research ◽  
Exploratory Research ◽  
Western Cape ◽  
Content Type ◽  
The University

Purpose This paper aims to explore the role of university in promoting, generating and sustaining social innovation (SI). It aimed to understand how higher education institutions have extended their contribution beyond the traditional function of teaching and research to perform in socio-economic problem-solving. It looks at the kinds of contributions which universities potentially make to SI processes, and the effects that this has on the direction and magnitude of SI, and by implication social development. This was done by drawing lessons from a SI project that the University of the Western Cape has been involved in, i.e. Zenzeleni Networks Project. Design/methodology/approach To address the research question with this framework, the author adopted an exploratory research design using a case study. This research is qualitative, exploratory and descriptive, based on a case study built with secondary data. Findings This paper submits that universities can potentially function as key role players in promoting SI initiatives and fostering social transformations. Universities contribute with different kinds of resources and inputs to foster new SI ideas. Originality/value The paper suggests that socially innovative university projects may contribute to community social sustainability maintaining social cohesion by increasing social capital and providing resources for the empowerment of the marginalised communities. In so doing, they contribute to overcome social exclusion and promote more sustainable forms of development at community level. More research is needed on how universities can build community networks with local community partners, who can use the insights of academic research to replicate interventions and move to scale.

scholarly journals Drivers of Individual Credit Risk of Retail Customers—A Case Study on the Example of the Polish Cooperative Banking Sector

Risks ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 219
Author(s):  
Rafał Balina ◽  
Marta Idasz-Balina
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Predictive Power ◽  
Banking Sector ◽  
Key Factors ◽  
Logit Regression ◽  
Local Character ◽  
History Of ◽  
Cooperative Banks

The main aim of the research was to determine the key factors determining the level of credit risk of individual clients (clients in the form of natural persons, excluding companies) on the example of Polish cooperative banks according to the following features: transaction characteristics, socio-demographic characteristics of the customer, the customer’s financial situation, the customer’s history of cooperation with the cooperative bank where they applied for a loan, and the customer’s history of cooperation with other financial institutions. For the research gathered data from 1000 credit applications submitted by individual customers when applying for a credit in five different cooperative banks were used for the analyses. To assess the credit risk of retail clients we use logit regression models, and additionally, score cards were calculated. The results of the research indicate that among the factors with high predictive power there were the features characterizing the client’s history of cooperation with the cooperative bank, where they applied for a loan. It may mean that when assessing credit risk related to financing individual customers, cooperative banks due to their local character, have an advantage over other financial institutions.

scholarly journals KONSEP PEMBIAYAAN BERBASIS AKAD JUAL BELI PADA BAITUL MAAL WAT TAMWIL PAHLAWAN TULUNGAGUNG

2020 ◽  
Vol 6 (7) ◽  
pp. 1434
Author(s):  
Ike Nofita Nurohmah ◽  
Irham Zaki
Keyword(s):  
Data Collection ◽  
Qualitative Methods ◽  
Financial Institutions ◽  
Study Strategies ◽  
Microfinance Institutions ◽  
Descriptive Case Study ◽  
Islamic Financial Institutions ◽  
Islamic Microfinance

Financing using a sale and purchase contract is one of the most dominant financing in Islamic financial institutions. One of the Islamic microfinance institutions namely baitul maal wat tamil has two types of sale and purchase agreements on its financing products, namely the contract of sale and purchase of murabahah and bai bithaman ajil. This study discusses the concept of financing based on the sale and purchase contract, namely murabahah and bai bithaman ajil on baitul maal wat tamwil (BMT) Pahlawan Tulungagung. The things that need to be reviewed in the practice of the ajabahah and bai bithaman contract are adjusted to the points in the DSN-MUI Fatwa on murabahah financing. This study uses qualitative methods with descriptive case study strategies. Data collection through interviews with four respondents consisting of financing managers, managers and two members of the financing of buying and selling financing and documentation. Interpretation and conclusions are made by linking between data obtained in interviews and documentation. The results of the study show that the concept of financing murabahah and bai bithaman ajil in BMT Pahlawan is not fully in accordance with the DSN-MUI Fatwa regarding the purchase of goods. However, this is still tolerated because of the limitations of BMT to purchase goods which then applies the Al-hajatu tunazzilu rule, manzilata al-dharurah, which is a requirement or need to occupy an emergency position so that the purchasing system is allowed.Keywords: Financing, Murabaha, Bai bithaman ajil, DSN-MUI, BMT Pahlawans

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