Understanding FinTech and Decentralized Finance (DeFi) for Financial Inclusion

2022 ◽  
pp. 1-13
Author(s):  
Andrei Dragos Popescu
Keyword(s):  
Social Problem ◽  
Financial Services ◽  
Paradigm Shift ◽  
Financial Inclusion ◽  
Underserved Population ◽  
Finance Industry ◽  
Long Period ◽  
Financial Exclusion ◽  
Cycle Of Poverty ◽  
Financial Technology

For a very long period of time, financial inclusion researchers have been addressing the barriers that prevent unprivileged people from accessing and using financial services. Financial exclusion is an underlying social problem that dates from the creation of the first financial system. Without the access to the banking and financial infrastructures, the unbanked are perpetuating a vicious cycle of poverty. Blockchain is leading this transformation of allowing unbanked and underbanked people to have access and interact with the finance industry. The promise of a digital economy is starting to take shape, as financial technology (FinTech) companies are evolving the concept of democratization of access. Decentralized finance (DeFi) is expanding the possibilities of financial technology by creating an ecosystem based on transparency, accessibility, and efficiency. We are witnessing a paradigm shift for most of the financial services which are remodeling the accessibility and usability of these services, addressing the excluded and underserved population.

scholarly journals Financial Technology (Fin-Tech): Revolutionizing the Indian Agrarian Sector

2020 ◽  
Vol 8 (12s3) ◽  
pp. 1-8
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Risk Sharing ◽  
Financial Inclusion ◽  
Indian Government ◽  
Agricultural Finance ◽  
Agricultural Growth ◽  
Two Factors ◽  
Financial Technology

Agriculture is the largest employer of India which constitutes 50% of its workforce and also a contributor to 17-18% in its GDP. Still, it is one of the most disorganized and disjointed sector.Somewhere this sector has not been given due attention and itcan be proven with the fact that the GDP contribution of this sector has fallen from 43% to 18% (1970- 2018).Though the Indian Government is digitally driving to provide financial inclusion to more than 145 million households that are not having access to banking services but still the farmers aremajorlyusing traditional credit for their basic and main two factors; Production & Consumption (Distribution). The financial segment has an important role to make agriculture aprime contributorto the economic growth of the country and also in reducing poverty. A fast-evolving technological landscape is bringing up new potential to focus&provide credit, risk-sharing, and to explore technology to enhance agricultural productivity. Our paper firstly examines agricultural finance in the Indian context and then discusses how financial technology (Fin-Tech) can drive new products in credit and risk markets in India. We evaluate the role of mobile banking, financial literacy, digital financial services, digital financial technology, and block-chain technology. The paper is concluded with a discussion of policy takeaways for Fin-Tech in agriculture to promote agricultural growth, enhance financial inclusion, and improve regional economic integration through agriculture.

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 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.

Mobile Financial Services

2020 ◽  
pp. 96-119
Author(s):  
Alexander Maina Kimari ◽  
Eric Blanco Niyitunga
Keyword(s):  
Financial Services ◽  
Developing World ◽  
Service Providers ◽  
Customer Experience ◽  
Financial Service ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Mobile Financial Services

The chapter explores financial exclusion, its causes, and consequences in society. The chapter found that the existing discrepancy in financial inclusion between the developed and developing world is driven by financial exclusion that makes it difficult for financial service providers to expand outreach to the poor at affordable prices. The chapter aims to investigate the role of mobile financial service design and development in dealing with financial exclusion. It was found that mobile financial services are promoting financial inclusion in various markets. However, few studies have been undertaken on the benefits of mobile financial services in dealing with the high rates of financial exclusion. The chapter recommended that to achieve financial inclusion, there is need for mobile financial services providers to take into account customer experience through the ease of using the phone interface. The chapter concluded that there is need for scholars in the fields of finance and economics to conduct research in the areas of mobile financial services and their role in society.

scholarly journals Exploring the Development of Financial Inclusion in the Context of Financial Technology

2021 ◽  
Vol 4 (4) ◽  
pp. 104-111
Author(s):  
Ziyi Cheng
Keyword(s):  
Economic Growth ◽  
United Nations ◽  
Financial Services ◽  
Banking Industry ◽  
Financial Inclusion ◽  
Family Enterprises ◽  
The United Nations ◽  
Financial Technology

The concept of inclusive finance was proposed and promoted by the United Nations in 2005 with the main purpose of providing services for those who lack good financial services while promoting the economic growth of family enterprises and eliminating social poverty as well as inequality. With the innovation of financial technology and its application in the field of financial inclusion, the new inclusive finance has shown strong vitality and great prospects in recent years. It provides certain ideas and directions for the development of inclusive finance in the banking industry.

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 Wykluczenie finansowe i integracja finansowa – aspekty terminologiczne

2018 ◽  
pp. 63-83
Author(s):  
Maria Czarnecka
Keyword(s):  
Financial Services ◽  
Supply And Demand ◽  
Financial Inclusion ◽  
Demand And Supply ◽  
Financial Products ◽  
Sensitive Areas ◽  
Financial Exclusion ◽  
Use Of Services ◽  
Social Level

The aim of the article was to present the issue of financial exclusion and define sensitive areas of this phenomenon. The factors that may be relevant for measuring the degree of financial exclusion were analysed. An attempt was also made to determine the difficulties in access to financial services in the context of practices applied by both the supply and demand sides. In addition, barriers to the use of services were analysed as were financial products in terms of practices used by supply and demand. The typology of financial exclusion presented in the article is an attempt to define the type and scope of the phenomenon. Bank exclusion, credit exclusion and exclusion from the savings system are financial exclusion indicators. Each of those types of exclusion affects the economic and social level. Financial exclusion, which is one of the symptoms of the imbalance between demand and supply, is understood here as total or partial access to financial services offered by the market. The article also attempts to analyse the causes of exclusion with the division into supply and demand factors. The typology of financial exclusion proposed in the article may be a contributing factor to the reverse phenomenon, which is financial inclusion.

scholarly journals The Effect of Financial Literacy and Financial Technology on Student Financial Inclusion of Institute of Social Sciences and Management Stiami Jakarta Bekasi Campus

2020 ◽  
Vol 2 (1) ◽  
pp. 16-27
Author(s):  
Ismi Amalia Romadhon ◽  
Heksawan Rahmadi
Keyword(s):  
Social Sciences ◽  
Financial Literacy ◽  
Financial Services ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Simple Random Sampling ◽  
Multiple Linear Regression Analysis ◽  
Financial Inclusion ◽  
Test Reliability ◽  
Financial Technology

Financial inclusion is a situation where everyone has access to quality financial services at an affordable cost and a fun way. This research aims to find out the influence of literacy on financial inclusion, to know the influence of financial technolgy on financial inclusion on students of Institute of Social Sciences and Management STIAMI Jakarta Bekasi Campus. The population of this study was a student employee of STIAMI Institute of Social Sciences and Management Jakarta Bekasi Campus and was assigned a sample of 47 respondents, with the method of Simple Random Sampling. The study used questionnaire data collection techniques. Technical analysis of the data used is validity test, reliability, classic assumption, multiple linear, Correlation Coefficient, determination coefficient and hypothesis test. The results of the study based on the t test analysis showed that the financial literacy variable (X1) with a calculated t value of 0.607 > t table 2.01537 or signification 0.547 > 0.05 and variable financial technology (X2) with a calculated value of 3.895 > t table 2.01537 or signification of 0.000 < 0.05, it is said that only financial technology variables (X2) have a significant effect on financial inclusion variables (Y). While the F test results show that independent variables (price and product quality) have a simultaneous influence on dependent variables (purchasing decisions) with a value of F count 10,476 > F table 3.20 or signification of 0.000 < 0.05.. so Ho was rejected and Ha accepted. Based on multiple linear regression analysis the model or equation is Y = 64,392 + 0.095 (X1) + 1,140 (X2).

Promoting Indigenous Financial Inclusion

2018 ◽  
Vol 9 (2) ◽  
pp. 1-11
Author(s):  
Michael D'Rosario
Keyword(s):  
Social Services ◽  
Financial Services ◽  
Potential Role ◽  
Banking Sector ◽  
Indigenous Communities ◽  
Financial Inclusion ◽  
Banking Services ◽  
Geographic Dispersion ◽  
Financial Exclusion

This article describes how the majority of Australia's indigenous communities live within isolated regions and are typically characterized by levels of disadvantage not evidenced within mainstream Australian society. While there are a number of reasons for the evidenced disadvantages, access to financial services and social services are acknowledged as key contributors. The article outlines the role of banking sector competition and changing banking structures on the exclusion of indigenous people from banking services. It is claimed herein that access, marketing, price, and self-exclusion all serve to promote financial exclusion. It is posited that forms of access exclusion such as bank branch access and geographic dispersion have served as the key structural impediments to indigenous financial inclusion. Specifically, this article considers the potential role of adaptive cellular technologies and community telecentres in addressing financial exclusion within indigenous communities. Detailing successful ‘social banking' models adopted in several developing countries, it is asserted that m-banking could serve as a powerful tool for inclusion.

Paving the Way for the Development of FinTech Initiatives in ASEAN

2020 ◽  
pp. 80-107 ◽  
Author(s):  
Mahani Hamdan ◽  
Muhammad Anshari
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Millennial Generation ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Financial Policies ◽  
Practical Applications ◽  
Internet Penetration ◽  
Shed Light ◽  
Financial Technology

Financial technology (FinTech) is not one to be ignored under any circumstances. It is not only growing as a concept but a phenomenon that has been manifested in non-financial sectors using innovative technology to bring financial services straight to the customers. The creation and practical applications of FinTech supported by government regulations and financial policies, high mobile adoption, rising rates of internet penetration, and increasingly literate and millennial generation, strongly indicates that the various scopes of FinTech in ASEAN are very promising in supporting economic growth and financial inclusion. This chapter will provide an overview of FinTech and examine the development of FinTech initiatives to shed light on some challenges and solutions facing the ASEAN's financial landscape today and in the future.

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