scholarly journals Impact of social, geographic and economic variables on formal financial inclusion for households in Peru and Piura 2019

2021 ◽  
Vol 25 (110) ◽  
Author(s):  
Ronald Hidalgo Armest ◽  
Katherine Ivonne Suncion Alban ◽  
Mario Villegas Yarleque
Keyword(s):  
Financial Services ◽  
Logistic Model ◽  
Geographical Area ◽  
Financial Inclusion ◽  
Social Variables ◽  
Economic Variables ◽  
Categorical Models ◽  
The Individual ◽  
Indirect Relationship ◽  
Binary Logistic Model

Reviewing economic theory, to maximize utility, the individual will have to decrease consumption, according to the income they receive and demand financial services to opt for savings, for which the objective was to determine the effect of economic and social variables and geographical areas that affect formal financial inclusion for the department of Piura in 2019. The best binary logistic model was chosen as a method through the lowest AIC and BIC, finding that the best model is the Probit, and the survey was also used as an instrument. national household (ENAHO), resulting in that the education and income variables have a greater direct relationship with the use of some type of financial services, the same happens with married marital status and age but to a lesser extent, in terms of location geographical area the rural area has an indirect relationship with the use of some type of financial services. Keywords: Financial inclusion, Economic Variables, categorical models, financial determinants. References [1]Instituto Nacional de Estadistica e Informatica, «Panorama de la Económia Peruana 1950-2018,» Lima, 2019. [2]A. Sanderson, L. Mutandwa y L. R. Pierre, «A Review of Determinants of Financial Inclusion,» International Journal of Economics and Financial, vol. 8, nº 3, pp. 1-8, 2018. [3]K. Dai Won, Y. Jung Suk y H. M. Kabir, «Financial inclusion and economic growth in OIC countries,» Research in International Business and Finance, vol. 43, pp. 1-14, 2018. [4]Superintendencia de Bancos e Instituciones Financieras Chile, «Informe de Inclusión Financiera en Chile 2019,» 2019. [5]C. Aparicio y M. Jaramillo, « Determinantes de la inclusión al sistema financiero: ¿cómo hacer para que el Perú alcance los mejores estándares a nivel internacional?,» Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones., Lima , 2012. [6]N. Cámara Izquierdo y D. Tuesta, «Factors that matter for financial inclusion evidence from Peru,» Dialnet, vol. 10, pp. 10-31, 2015. [7]M. Jaramillo, C. Aparicio y B. Sevallos, «¿Qué factores explican las diferencias en el acceso al sistema financiero?: evidencia a nivel de hogares en el Per´u,» Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones, Lima, 2013. [8]E. Anchapuri, principales determinantes del acceso al crédito financiero en economías rurales y urbanas del distrito de juli, año 2013, Puno , 2014. [9]Banco Mundial, Banco Mundial. [10]Ministerio de Economía y Finanzas , «Estrategia Nacional de Inclusión Financiera,» Lima , 2015. [11]Superintendencia de Banca, Seguros y AFP, «Reporte de Indicadores de Inclusión Financiera de los Sistemas Financieros, de Seguros y de Pensiones,» Lima, 2019. [12]Banco Central de Reserva del Perú Sucursal Piura , «Caracterización del departamento de Piura,» Piura, 2018. [13]J. Wooldridge, Introducción a la econometría un enfoque moderno, Mexico: Cengage Learning Editores, S.A., 2010, p. 575. [14]D. Gujarati y P. Dawn, Econometría, Mexico: McGRAW-HILL/INTERAMERICANA EDITORES.S.A, 2010, p. 563.

Where are the Unbanked in Belize?: Using Machine Learning Small Area Estimation to Improve Financial Inclusion Geographic Targeting

2021 ◽  
Author(s):  
Jonathan Hersh ◽  
Lucia Martin Rivero ◽  
Janelle Leslie
Keyword(s):  
Machine Learning ◽  
Financial Services ◽  
Small Area ◽  
Small Area Estimation ◽  
Geographical Area ◽  
Financial Inclusion ◽  
Area Estimation ◽  
Task Forces ◽  
Effective Implementation ◽  
Financial Characteristics

This study aims to contribute to the efficient and effective implementation of Belize's National Financial Inclusion Strategy (NFIS) that was launched by the Central Bank of Belize in 2019. It employs Machine Learning Based Small Area Estimation to develop granular estimates of Financial Inclusion at the smallest geographical level know as Enumeration Districts (ED) that were previously unavailable for Belize. To gain deeper understanding of the populations financial characteristics at the ED level, we build five measures of access to banking and financial services. Significant clustering of financial inclusion metrics that are not apparent in the district level averages are identified. This study also analyzes the factors that influence the use of financial services and instruments in order to propose appropriate adjustments in the strategies implemented by authorities in each geographical area. Both the spatial distribution of Financial Inclusion indicators and the factors influencing the adoption of financial services shed light on specific recommendations relevant to each of the four Thematic Financial Inclusion Task Forces included in the NFIS.

scholarly journals The determinants of Financial Inclusion and Digital Financial Inclusion in India: A Comparative Study

2021 ◽  
Vol 13 (2) ◽  
pp. 109-120
Author(s):  
SRINIVASU BATHULA ◽  
◽  
ANKITA GUPTA ◽  
Keyword(s):  
Regression Analysis ◽  
Comparative Analysis ◽  
Financial Services ◽  
Financial Inclusion ◽  
Mobile Banking ◽  
Probit Regression ◽  
Individual Level ◽  
Frequent Use ◽  
The Individual ◽  
Binary Probit

The access to the Önancial services and digital financial services in India has not yet transformed into their frequent use. Therefore, the present paper provides a comparative analysis of the individual level determinants for few main indicators of the two main dimen- sions of Önancial inclusion and digital Önancial inclusion: access and use, based on binary probit regression analysis using World Bankís 2017 Global Findex data. The paper concludes that education and workforce participation are positively associated with the access to Ö- nancial services and digital financial services and also with the use of most of the financial services and digital financial services. Another interesting result is that being a woman and poor reduces the probability of using mobile banking but do not a§ect traditional banking.

Determinants of Successful Financial Inclusion in Low-Income Rural Population

2020 ◽  
Vol 68 (1) ◽  
pp. 82-100
Author(s):  
Yashwant Kumar Vaid ◽  
Vikram Singh ◽  
Monika Sethi
Keyword(s):  
Low Income ◽  
Rural Population ◽  
Geographical Area ◽  
Developing Nations ◽  
Point Of View ◽  
Financial Inclusion ◽  
Main Concern ◽  
Policy Makers ◽  
Developing Nation ◽  
Financial Products

Finance plays a key role in the growth of developed as well as developing nations. A financially well included society leads to stronger growth. Financial inclusion aims at providing easy and affordable access to financial products and services. The main concern for any developing nation from a growth point of view is advancement of low-income rural population just as much as the high-income population. Taking a note of this, identifying the key determinants that would lead to successful financial inclusion of low-income rural population is equally, if not more, important. The inclusion strategies have to be built around these determinants to promote inclusion and thus, a clear picture of these determinants is a must have for strategy and policy makers. Though the factors may be somewhat similar across the nation, but their significance and impact on financial inclusion varies greatly from one geographical area to other. In line with this, the purpose of this study is to identify the dimensions of successful financial inclusion in the low-income rural segments with special reference to Raipur, Chhattisgarh. The study uses factor analysis to identify the determinants and path analysis to analyse the significance of these factors in financial inclusion.

scholarly journals Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 80
Author(s):  
Rosmah Nizam ◽  
Zulkefly Abdul Karim ◽  
Tamat Sarmidi ◽  
Aisyah Abdul Rahman
Keyword(s):  
Financial Services ◽  
Firm Growth ◽  
Manufacturing Sector ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Manufacturing Firm ◽  
New Findings ◽  
Asean Countries ◽  
The Impact ◽  
Threshold Point

This paper examines the effect of financial inclusion on the firm growth of the manufacturing sector (513 firms) in selected ASEAN countries (Malaysia, Philippines, and Vietnam) using a cross-section threshold estimation technique. The levels of financial inclusion across firms were measured based on the distribution of financial services (access to credit). The main findings revealed that there is a non-monotonic effect of financial inclusion on the firm’s growth. These findings show that the impact of financial inclusion on firm growth in the manufacturing sector is significantly positive below a threshold point, and turns to significantly negative after a certain threshold point has been reached. These new findings suggest that manufacturing firm owners and banking institutions should deepen their financial inclusion efforts, and limit the distribution of credit access within the optimum value or threshold level in promoting the growth of the firm.

Determinants of Financial Inclusion in Namobuddha Municipality, Nepal

2021 ◽  
Vol 5 (1) ◽  
pp. 60-74
Author(s):  
Jeetendra Dangol ◽  
Anil Humagain
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Control Variable ◽  
Financial Innovation ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
Gender Education ◽  
And Control ◽  
Moderating Role

Financial inclusion is a priority agenda in countries like Nepal. The study seeks to determine the access to financial services, financial innovation and quality of financial services to the financial inclusion.The study is based on questionnaire surveydata with363 household respondents using a convenient sampling technique, and carried out in Namobuddha Municipality of Nepal. The moderating effect of financial literacy and control variable of demographic items have been analysed using generalised regression model. The results show that financial innovation and quality of financial services are the significant determinants of financial inclusion; financial literacy is found significant and it plays a moderating role between the variables under study. The findings revealed that the tendency of higher level of financial inclusion was influenced by gender, education level and monthly income.

Quality financial inclusion and its determinants in South Africa: evidence from survey data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kudakwashe Joshua Chipunza ◽  
Ashenafi Fanta
Keyword(s):  
South Africa ◽  
Survey Data ◽  
Financial Services ◽  
Ordinary Least Squares ◽  
Financial Inclusion ◽  
Least Squares Regression ◽  
Content Type ◽  
Demographic Groups ◽  
Financial Products ◽  
Data Limitations

PurposeThe study measured quality financial inclusion, a more comprehensive measure of financial inclusion, and examined its determinants at a consumer level in South Africa.Design/methodology/approachThis study leveraged on FinScope 2015 survey data to compute a quality financial inclusion index using polychoric principal component analysis. Subsequently, a heteroscedasticity consistent ordinary least squares regression model was employed to assess determinants of quality financial inclusion.FindingsThe empirical findings indicated that gender, education, financial literacy, income, location and geographical proximity determine quality financial inclusion. These findings could inform policymakers and financial services providers on how quality financial inclusion can be promoted through tailoring financial products for various socio-demographic groups.Research limitations/implicationsDue to data limitations, the study was confined to South Africa and did not capture digital financial inclusion. Hence, future studies could replicate the study in Sub-Saharan Africa's context and compute an index that captures digital financial inclusion.Practical implicationsThese findings could inform policymakers and financial services providers on how quality financial inclusion can be promoted through tailoring financial products for various socio-demographic groups.Originality/valueThis study proposed a more comprehensive measure of quality financial inclusion from a demand-side perspective by accounting for important dimensions that include diversity, affordability, appropriateness and flexibility of financial products and services.

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 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 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

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