EFFECTS OF MOBILE BANKING ON THE PERFORMANCE OF ISLAMIC MICROFINANCE INSTITUTIONS IN BANGLADESH

2021 ◽  
pp. 21-30
Author(s):  
Mohammad Niaz Morshed ◽  
Md Chapol Ali
Keyword(s):  
Questionnaire Survey ◽  
Survey Method ◽  
Financial Sustainability ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Study Population ◽  
Islamic Microfinance ◽  
Internal Operations ◽  
Positive Effect

This study examines the effect of mobile banking on performance of Islamic Microfinance Institutions (IMFIs) in Bangladesh which includes their efficiency and internal operations, staff productivity, communication, breadth and depth of outreach, financial sustainability and portfolio quality. A questionnaire survey method was used for collecting the relevant data (n=200) from the selected sample representing the study population. The findings of this study reveals that Mobile Banking (MB) has a significant and positive effect on the performance of Islamic Microfinance Institutions (IMFIs) in Bangladesh, and it is perceived from the results that MB could significantly improve the performance of IMFIs by increasing the efficiency, staff productivity, communication, outreach and financial sustainability except portfolio quality.

scholarly journals Revenue diversification and financial sustainability of microfinance institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Nderitu Githaiga
Keyword(s):  
Generalized Method Of Moments ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Revenue Diversification ◽  
Estimation Model ◽  
Data Set ◽  
Content Type ◽  
Method Of Moments Estimation ◽  
The Impact ◽  
Positive Effect

PurposeThis paper aims to investigate whether revenue diversification affects the financial sustainability of microfinance institutions (MFIs).Design/methodology/approachThe study uses a worldwide panel data set of 443 MFIs in 108 countries for the period 2013–2018 and two-step system Generalized Method of Moments estimation model.FindingsThe study finds that revenue diversification has a significant and positive effect on the financial sustainability of MFIs.Practical implicationsThe findings of this study actually offer important managerial and policy lessons on MFIs’ financial sustainability. Microfinance managers and policymakers should consider revenue diversification as a strategy through which MFIs can attain financial sustainability instead of overreliance on donations and government subsidiesOriginality/valueUnlike previous studies that examined revenue diversification in the context of banking firms, this study contributes to literature by examining the impact of revenue diversification of the financial sustainability of MFIs.

scholarly journals The Effect of Leadership, Employee Engagement, and Self Learning on Effectiveness of Employee's Work

2018 ◽  
Vol 6 (07) ◽  
Author(s):  
Paima Erianto Hasibuan ◽  
Maruf Akbar ◽  
Thomas Suyanto
Keyword(s):  
Organizational Performance ◽  
Employee Engagement ◽  
Independent Learning ◽  
Survey Method ◽  
Leadership Engagement ◽  
Instrument Measuring ◽  
Study Population ◽  
Employee Effectiveness ◽  
Self Learning ◽  
Positive Effect

Purpose - The aim of this article is to analysis, an organizational performance through process systematically to improve organizational performance through improving the performance of individuals and teams. Design / methodology / approach - This study, used survey method with quantitative approach, the instrument measuring instrument in the form of a questionnaire. This study population as many as 133 employees. Saturated sampling used in this study. The test instrument Carried out on 30 employees. Analysis was done by using descriptive and inferential statistics. Findings - The results show that Leadership has positive effect on Employee Effectiveness, Employee Engagement positively effect on Employee Effectiveness, Positive effect on the Independent Learning Employee Effectiveness, Leadership has positive effect on employee engagement, Leadership has positively effect on Self-egulated Learning and Employee Engagement positively affects Self-Learning. Practical implications - This study highlights the importance of providing support to Leadership, Employee Engagement, Self Learning and the effect on Effectiveness of Employee's Work. Keywords: Leadership, Engagement, Self-Learning, Effectiveness JEL: M0, M5

Intention to use mobile banking services: an Islamic banking customers’ perspective from Sri Lanka

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sabraz Nawaz Samsudeen ◽  
Gunapalan Selvaratnam ◽  
Ahamed Hilmy Hayathu Mohamed
Keyword(s):  
Sri Lanka ◽  
Questionnaire Survey ◽  
Partial Least Square ◽  
Survey Method ◽  
Islamic Banking ◽  
Intention To Use ◽  
Mobile Banking ◽  
Banking Services ◽  
Content Type ◽  
Moderating Variables

Purpose This paper aims to identify the determinants of the intention to use mobile banking services among Islamic Banking customers in Sri Lanka. The study was carried out based on the Unified Theory of Acceptance and Use of Technology (UTAUT 2). The predictor variables of performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation and habit were used to predict the variable of behavioural intention to use. The moderating variables entail age, gender and experience. Design/methodology/approach Quantitative method with questionnaire survey was used. Data collection relied on the questionnaire survey method of which items were derived and adapted from past literatures. The responses were captured using the seven-point Likert scale. The study population consisted of Islamic Banking customers in Sri Lanka. A total of 594 questionnaires were returned of which 582 were found usable for analysis. Data analysis was conducted using the partial least square structural equation modelling along with SmartPLS 3. Findings The analysis results demonstrated the significant effect of all the variables on the Islamic Banking customers’ intention to use m-banking services along with the significant effect of the moderating variables as initially hypothesized. Practical implications As the first study of its kind in the context of Islamic banking customers in Sri Lanka, this study offers decision makers valuable guidelines for when they intend to re-engineer their m-banking applications and promote them to the public. Originality/value Following a comprehensive literature review, this study is identified as the pioneering effort in the investigation of m-banking usage intention among Islamic Banking customers in Sri Lanka. Therefore, this study contributes new knowledge and insights to the existing body of literature by confirming the viability of the UTAUT2 model in driving m-banking usage adoption among Islamic Banking customers in Sri Lanka.

scholarly journals Financial and Social Performances of Islamic Microfinance Service Provider With Mobile Banking

2019 ◽  
Vol 10 (5) ◽  
pp. 181
Author(s):  
Afifa Malina Amran ◽  
Intan Salwani Mohamed ◽  
Sharifah Norzehan Syed Yusuf ◽  
Nabilah Rozzani
Keyword(s):  
Social Performance ◽  
Accounting Information ◽  
Standard Of Living ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Accounting Information System ◽  
Qualitative Approaches ◽  
Islamic Financial Institutions ◽  
Microfinance Institution ◽  
Islamic Microfinance

In Malaysia, Islamic microfinance institutions (IMFIs) are part of Islamic financial institutions and have been established to provide Islamic microfinance products (interest free loans). Their aim is to promote trade activities among Islamic microfinance recipients in improving their standard of living. Information and data gathered can be used as evidence to prove that Islamic microfinance has traits that provide a support system for the poorest of the poor. This study hence intends to investigate the application of technology by Islamic microfinance institutions within a context of its accounting information system through the usage of mobile banking. This study is conducted using qualitative approaches via interviews to obtain in depth understanding of mobile banking usage at an Islamic microfinance institution. Financial data, as well as data on the total number of loan recipients (sahabats) is referred by the study in investigating another aspect of social performance in terms of vicegerency and accountability of the IMFI. Extensive application of vicegerency concept in explaining the findings is parallel to Shari'ah Foundation for Accountants in outlining characteristics of Muslim accountants in preventing them from doing prohibited actions.

scholarly journals An Estimation of Market Size for Microfinance: Study on the Urban Microentrepreneurs in Selangor, Malaysia

2015 ◽  
Vol 11 (27) ◽  
pp. 269 ◽  
Author(s):  
Salwana Hassan ◽  
Md Mahmudul Alam ◽  
Rashidah Abdul Rahman
Keyword(s):  
Developing Country ◽  
Questionnaire Survey ◽  
Urban Areas ◽  
Market Size ◽  
Microfinance Institutions ◽  
The People ◽  
Potential Market ◽  
Negative Perceptions ◽  
Islamic Microfinance ◽  
Size Data

<p>Malaysia is a fast growing developing country where majority of the people are Muslim. Due to the religious bindings, Muslim prefers <em>Shariah</em> compliant Islamic credits instead of conventional interest based credits. At the same time, non-Muslims can also consider <em>Shariah</em> compliant Islamic credit because it is considered as the ethical credit. However, still many microentrepreneurs are not receiving the <em>Shariah</em> compliant Islamic microfinance products because they have negative perceptions about the credit and interest (<em>riba). </em>Therefore, this study aims to assess the demand for microfinance among the microentrepreneurs in the State of Selangor, Malaysia and thus, determine the potential market size. Data of the study were collected based on a questionnaire survey from 550 microentrepreneurs from the urban areas of Selangor. It was found that only 12.2 per cent of them received microfinance from various microfinance institutions and banks. However, the study found that still there is potential for microfinance borrowing with around 55,000-128,000 microenterprises in Selangor, Malaysia. Therefore, Islamic microfinance institutions should try to expand their market size by promoting these potential microfinance borrowers among the existing microentrepreneurs.</p>

scholarly journals Determinants of Financial Sustainability for Microfinance Institutions: Lessons for Islamic Microfinance Banks in Nigeria

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 301-320
Author(s):  
Abdurrahman Abdullahi ◽  
Anwar Hasan Abdullah Othman
Keyword(s):  
Capital Structure ◽  
Financial Services ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
The Poor ◽  
Research Findings ◽  
Islamic Microfinance ◽  
Asset Size ◽  
Good Risk ◽  
Economic And Financial Crisis

Islamic microfinance institutions play a major role in the provision of financial services to the poor and underprivileged through non-interest, equity-based products and services. To achieve these critical objectives, however, they need to be financially sustainable, which is threatened by the current economic and financial crisis caused by the Covid-19 pandemic. The objective of this paper is to review the determinants of financial sustainability of microfinance institutions with a view to drawing lessons for Islamic microfinance banks in Nigeria. The paper utilized the literature review methodology to synthesize research findings in the area. The review revealed that the major determinants of financial sustainability of microfinance institutions are the capital structure, asset size, and financial innovation. Others are good risk management and corporate governance frameworks. The paper thus recommended that Islamic microfinance institutions in Nigeria should maintain a robust capital structure that relies more on equity, a lean but diversified Board, and utilize more technology-based services. Most importantly, they should emphasize profit and loss sharing principles in their operations.

TIPOLOGI MINAT ANAK MUDA TERHADAP LEMBAGA KEUANGAN MIKRO SYARIAH BERDASARKAN LAYANAN MOBILE BANKING

2019 ◽  
Vol 1 (2) ◽  
pp. 1-10
Author(s):  
Hasbi Assidiki Mauluddi
Keyword(s):  
High School Students ◽  
Young People ◽  
Rural Areas ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
School Students ◽  
Banking Services ◽  
Islamic Microfinance ◽  
Mobile Banking Applications ◽  
Cluster 2

This research was conducted to find out typical interest among young people towards Islamic microfinance institutions (LKMS) based on mobile banking services. The research data was taken by purposive sampling method on high school students in Kabupaten Bandung as many as 120 people. The data obtained is then processed using K-means cluster analysis. The results of the study show that the majority of young people in rural areas are interested in becoming customers of Islamic microfinance institutions (LKMS). This is due to the strong attractiveness of LKMS products, satisfaction using LKMS mobile banking applications, knowledge of LKMS institutions, and knowledge of LKMS products. The majority of these youth are members of cluster 2. While cluster members 1 and cluster 3 are minority clusters. In the minority clusters, weak knowledge of LKMS institutions and products causes a weak interest in young people in the use of LKMS mobile banking applications. This is not the case in cluster 2. Thus, the strong interest of young people in the application of Mobile banking LKMS membership is closely related to their knowledge of LKMS institutions and products.

scholarly journals Analysis of Accounting Information System Using Hot Fit Model Method in Indonesia Islamic Micro Financial Institutions

2019 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Chaidir Iswanaji
Keyword(s):  
Information System ◽  
Financial Institutions ◽  
Accounting Information ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Quality Of Reporting ◽  
Accounting Information Systems ◽  
Remote Areas ◽  
Islamic Microfinance

Financial institutions need to provide technology-based services that facilitate access to information for communities in remote areas. This research aims first, reviewing the use of mobile banking in improving the quality of reporting and expanding the reach of financial services; second, the practice of utilizing mobile banking for Islamic microfinance institutions in Indonesia; third, evaluating the implementation of the Islamic microfinance information system in Indonesia. The research method used in this study is descriptive quantitative, with a sample of 100 accountants. Descriptive analysis was aided by SPSS 21.0 software for Windows. The results of this study indicate that; first, Mobile banking is the right mechanism to improve the quality of reporting and make the services of Islamic microfinance institutions accessible to the poor in remote areas of Indonesia. Second, the practice of utilizing accounting information systems in Islamic microfinance institutions is already good. Third, Overall, the application of accounting information systems at Islamic microfinance institutions in Indonesia can have a positive effect on improving the services of Islamic microfinance institutions both individually accountants and organizations.

scholarly journals An Estimation of Market Size for Microfinance: Study on the Urban Microentrepreneurs in Selangor, Malaysia

2019 ◽  
Author(s):  
Salwana Hassan ◽  
Md. Mahmudul Alam ◽  
Rashidah Abdul Rahman3
Keyword(s):  
Developing Country ◽  
Questionnaire Survey ◽  
Urban Areas ◽  
Market Size ◽  
Microfinance Institutions ◽  
The People ◽  
Potential Market ◽  
Negative Perceptions ◽  
Islamic Microfinance ◽  
Size Data

Malaysia is a fast growing developing country where majority of the people are Muslim. Due to the religious bindings, Muslim prefers Shariahcompliant Islamic credits instead of conventional interest based credits. At the same time, non-Muslims can also consider Shariahcompliant Islamic credit because it is considered as the ethical credit. However, still many microentrepreneurs are not receiving the Shariahcompliant Islamic microfinance products because they have negative perceptions about the credit andinterest (riba). Therefore, this study aims to assess the demand for microfinance among the microentrepreneurs in the State of Selangor, Malaysia and thus, determine the potential market size. Data of the study were collected based on a questionnaire survey from 550 microentrepreneurs from the urban areas of Selangor. It was found that only 12.2 per cent of them received microfinance from various microfinance institutions and banks. However, the study found that still there is potential for microfinance borrowing with around 55,000-128,000 microenterprises in Selangor, Malaysia. Therefore, Islamic microfinance institutions should try to expand their market size by promoting these potential microfinance borrowers among the existing microentrepreneurs.

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