scholarly journals Transformative Technology in Microfinance: Delivering Hope Electronically?

2012 ◽  
Vol 13 ◽  
Author(s):  
Shanthi Elizabeth Senthe
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Primary Objective ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Vast Number ◽  
Current State ◽  
The Social ◽  
Consumer Perspective ◽  
Functionalist Approach

Considered a lifeline, and a convenience, a mobile phone has now acquired another transformative dimension within the microfinance context.  As a result of the proliferation of mobile banking in emerging markets and developing countries, microfinance institutions (“MFIs”) have adopted similar technological enhancements to deliver microfinance products.  This paper will explore how emerging technology advances has altered the contours of microfinance, specifically mobile banking (also known as “m-banking”) which is utilized to facilitate efficient financial services to a vast number of people without access to the formal banking  system and financial services, otherwise known as the “unbanked”.  This discussion offers a snapshot of the current state of mobile banking, and examines the kaleidoscopic approach used by microfinance institutions through several auxiliary considerations.  Part I examines the underlying rationale in employing a cashless banking paradigm and illustrates how mobile banking is administered institutionally.  Part II seeks to highlight the regulatory considerations intractable within the mobile banking discourse, and is intended to provide a survey of the current regulatory landscape, and finally, Part III focuses on uncovering the consumer perspective, and calls for a conceptual refinement in the interconnection of the social context within mobile banking. This paper is not intended to be categorized as a comparative law piece; rather its primary objective is to provide a snapshot of how certain jurisdictions have embraced mobile banking platforms and their legislative response thereto.  This discussion is merely offered as part of a functionalist approach discourse currently adopted by regulators; as such this paper only offers a cursory perspective of emerging legal considerations within the mobile banking context as it relates to MFIs.

Mobile Banking and Payment System

2018 ◽  
pp. 66-82
Author(s):  
Aijaz A. Shaikh ◽  
Payam Hanafizadeh ◽  
Heikki Karjaluoto
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Value Added ◽  
Payment System ◽  
Future Research ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Payment Systems ◽  
Services Sector ◽  
Future Research Directions

This study conceptualizes and proposes a well-regulated and designated mobile banking and payment system (MBPS) with the potential to strengthen the banking system, foster the regulatory framework, and to be integrated across various platforms and mobile devices. Unlike other mobile payment systems that lack convenience, scalability, and usability, the proposed MBPS contains several important functionalities and it has the potential to bring together hitherto unconnected industries—banking, Fintech and telecoms—to offer value-added services to their existing and potential customers. The ownership of the MBPS shall remain with the financial services sector including the banking and microfinance institutions. The paper concludes with a discussion on the implications and limitations of the study and proposes future research directions.

scholarly journals Mobile Banking and Payment System

2017 ◽  
Vol 13 (2) ◽  
pp. 14-27 ◽  
Author(s):  
Aijaz A. Shaikh ◽  
Payam Hanafizadeh ◽  
Heikki Karjaluoto
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Value Added ◽  
Payment System ◽  
Future Research ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Payment Systems ◽  
Services Sector ◽  
Future Research Directions

This study conceptualizes and proposes a well-regulated and designated mobile banking and payment system (MBPS) with the potential to strengthen the banking system, foster the regulatory framework, and to be integrated across various platforms and mobile devices. Unlike other mobile payment systems that lack convenience, scalability, and usability, the proposed MBPS contains several important functionalities and it has the potential to bring together hitherto unconnected industries—banking, Fintech and telecoms—to offer value-added services to their existing and potential customers. The ownership of the MBPS shall remain with the financial services sector including the banking and microfinance institutions. The paper concludes with a discussion on the implications and limitations of the study and proposes future research directions.

THE CURRENT STATE OF THE BANKING SYSTEM OF SAUDI ARABIA

2017 ◽  
Author(s):  
Maryna Korol ◽  
◽  
Olha Shumnegra ◽  
Keyword(s):  
Saudi Arabia ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Scientific Publication ◽  
Islamic Banking ◽  
Historical Aspect ◽  
Current State ◽  
The Government ◽  
And Control

This scientific publication analyzes the current state of the banking system of the Kingdom of Saudi Arabia. The peculiarities of the functioning of the Islamic banking system, the main types of financial products provided by banks and the laws under which financial services are provided to Muslims are identified. The basic principles of Islamic banking, which are prescribed in the Sharia, are described, such as, for example, the exclusion of interest on all financial transactions. There is also a list of major Saudi banks and foreign affiliates operating in the country. The historical aspect of the formation of the banking sector is studied. The main financial indicators are analyzed: the dynamics of assets, liabilities, the number of loans to private and corporate clients, the share of Saudi assets in global Islamic finance. Attention is also paid to the prospects and success of the stock market. The issue of management and control over the activities of banks and its role are studied. a list of specialized credit institutions established by the government to provide highly specialized loans to citizens of the kingdom. The positive dynamics of all indicators even in the conditions of global crises, thanks to the well-laid foundation and the further strategy concerning functioning in the conditions of the world pandemic are allocated. The list of the main internal problems which can suspend growth in the future is considered. The issue of the country's dependence on oil prices, with further impact on financial diversification, is considered separately. The prospects of the banking system of Saudi Arabia in the near future, and the role of the Kingdom as a partner in financial relations for the domestic economy are determined. Conclusions are made on the basis of the conducted research and prospects of further strategic development in this direction.

scholarly journals Predicting The Impact of Commercialization Factors on The Social Mission of Islamic Microfinance Institutions for Muslim Community

2020 ◽  
Vol 6 (1) ◽  
pp. 14
Author(s):  
Hesi Eka Puteri
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Quantitative Research ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Muslim Community ◽  
Social Mission ◽  
The Social ◽  
Community Banking ◽  
The Impact

<p class="abstrak">As a community banking operating in Islamic principles, Islamic rural banks are faced with two performance targets namely financial performance and social performance which are both interrelated. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of Islamic rural banks. This study was quantitative research based on a survey on six units of Islamic rural banks in West Sumatera province of Indonesia from 2012 to 2018. Data collected from the publication of financial services authority and other financial documents at Islamic rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced social performance. Meanwhile, there was no regulation’s impact on social performance.  Regulatory factors that were initially expected to strengthen the social responsibility mission of Islamic rural banks, did not stimulate the increase of social performance. This study reveals the importance of the commercialization factor in improving the social performance of Islamic rural banks by increasing the social benefits through providing financial services for the low-income Muslim community.</p><p class="abstrak" align="left"> <em>Sebagai sebuah community banking yang beroperasi dalam prinsip-prinsip Islam, BPR Syariah dihadapkan pada dua target kinerja yaitu kinerja keuangan dan kinerja sosial yang keduanya saling terkait. Penelitian ini bertujuan untuk menguji dampak dari faktor-faktor komersialisasi yang meliputi profitabilitas, regulasi dan kompetisi terhadap kinerja sosial BPR Syariah. Penelitian ini menggunakan pendekatan kuantitatif berdasarkan survei pada enam unit BPR Syariah di provinsi Sumatera Barat Indonesia dari tahun 2012 hingga 2018. Data dikumpulkan dari publikasi Otoritas Jasa Keuangan dan dokumen keuangan lainnya di BPR Syariah kemudian dianalisis dengan regresi data panel. Hasil penelitian ini menunjukkan bahwa profitabilitas dan persaingan berpengaruh terhadap kinerja sosial, sedangkan regulasi tidak berpengaruh terhadap kinerja sosial. Faktor regulasi yang semula diharapkan memperkuat misi tanggung jawab sosial BPR syariah, ternyata tidak merangsang peningkatan kinerja sosial. Studi ini mengungkap akan pentingnya faktor komersialisasi dalam meningkatkan kinerja sosial BPR syariah dengan meningkatkan manfaat sosial melalui pemberian layanan keuangan untuk masyarakat muslim berpenghasilan rendah.</em></p><p class="abstrak"> </p>

scholarly journals Stochastic model of microcredit interest rate in Morocco

2016 ◽  
Vol 6 (4) ◽  
pp. 268-273 ◽  
Author(s):  
Ghita Bennouna ◽  
Mohamed Tkiouat
Keyword(s):  
Interest Rate ◽  
Stochastic Model ◽  
Interest Rates ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Well Being ◽  
Microfinance Institutions ◽  
Social Mission ◽  
The Interest Rate

Access to microcredit can have a beneficial effect on the well-being of low-income households excluded from the traditional banking system. It allows this population to receive affordable financial services to help them to meet their needs and to improve their living conditions. However to provide access to credit, microfinance institutions should ensure not only their social mission but also commercial and financial mission to enable the institution to perpetuate and become self-sufficient. To this end, MFIs (microfinance institutions) must apply an interest rate that covers their costs and risk, while generating profits, Also microentrepreneurs need, to this end, to ensure the profitability of their activities. This paper presents the microfinance sector in Morocco. It focuses then on the interest rate applied by the Moroccan microfinance institutions; it provides also a comparative study between Morocco and other comparable countries in terms of interest rates charged to borrowers. Finally, this article presents a stochastic model of the interest rate in microcredit built in random loan repayment periods and on a real example of the program of loans of microfinance institution in Morocco.

scholarly journals The Role Of Islamic Banks In Yemen In Supporting Microfinance Institutions

IKONOMIKA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 121-126
Author(s):  
Abobakr Ramadhan Salem Al-Harethi
Keyword(s):  
Social Role ◽  
Close Association ◽  
Banking System ◽  
Developed Countries ◽  
Islamic Banks ◽  
Microfinance Institutions ◽  
The Social ◽  
The World ◽  
Global Financial System

Islamic banks become the best solution to the crisis of the global financial system at present.in addition, it  become  also a real player in dealing with economic crises and the financial complexities of the traditional banking system prevailing in the world today. moreover, countries and governments in both developed and developing countries have become increasingly interested in the issue of microfinance because of their close association with the development in various countries and may be interested in supporting countries and governments for microfinance by enacting the necessary laws and legislation. And the establishment of institutions and bodies specialized in financing and support these microfinance in addition to the microfinance in many developed countries have become a specialty taught in universities and specialized institutes. Scientific seminars and conferences are held in order to support and develop it so that it achieves the objectives set for it and thus meets the aspirations of society in development. This study focus on the role of Islamic banks that can play an active and influential role in generating wealth and reducing poverty through financing for Microfinance institutions where the study showed the social role of the nature of contracts in Islamic banks through which Islamic banks can be the best in Microfinance. Keywords : Islamic banks, Microfinance institutions, Yemen

Islamic and Conventional Micro-Financing in the MENA Region

2020 ◽  
pp. 216-239
Author(s):  
Imene Berguiga ◽  
Yosra Ben Said ◽  
Philippe Adair
Keyword(s):  
Middle East ◽  
Financial Performance ◽  
North Africa ◽  
Financial Services ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Mena Region ◽  
Trade Off ◽  
The Social ◽  
Conventional Services

The performance of MicroFinance Institutions (MFIs) is analysed for the period 2004-2015. Sample consists of 67 MFIs in the Middle East and North Africa region. It includes a subsample of 18 Islamic MFIs (IMFIs), whereof Solebusiness grants exclusively Islamic financial services and Window provides both Islamic and conventional services. A model of simultaneous equations with interacting variables tests seven hypotheses addressing financial performance, social performance, and the social and financial performance relationship. Conventional MFIs (CMFIs) experience higher financial performance than IMFIs and Window experiences higher financial performance than Solebusiness; IMFIs do not experience higher social performance than CMFIs; whether conventional or Islamic, MFIs face a financial vs. social performance trade-off.

scholarly journals Business Analytics for Managing Performance of Microfinance Institutions: A Flexible Management of the Implementation Process

2021 ◽  
Vol 13 (9) ◽  
pp. 4882
Author(s):  
Isabelle Piot-Lepetit ◽  
Joseph Nzongang
Keyword(s):  
Financial Services ◽  
Cultural Context ◽  
Organizational Context ◽  
Banking System ◽  
Implementation Process ◽  
Social Impacts ◽  
Social Enterprises ◽  
Business Analytics ◽  
Microfinance Institutions ◽  
Bottom Line

Microfinance institutions are social enterprises that focus on the provision of financial services to poor populations excluded from the conventional banking system. These organizations face a double-bottom line, dealing simultaneously with a financial and social objective. The challenge of putting it into action is great, especially when there is a need to involve all stakeholders and to replicate the experience to new communities. One way to sustain both financial performance and social impacts is to develop a business analytics solution aiming at measuring and expanding social impacts in a financially sustainable way. This paper describes main elements to be considered, in particular the organizational context, the development process, and implementation issues that would facilitate or impede the deployment of a business analytics initiative in practice. Finally, two main components of the implementation process are specifically pointed out: a behavioral fit of the business analytics solution to the cultural context of the organization, and the country where it is deployed, and a flexible commitment in the management of the business analytics initiative implementation.

scholarly journals Rural Finance in Contemporary Times: Interface with Microfinance

2005 ◽  
Vol 30 (2) ◽  
pp. 81-112 ◽  
Author(s):  
N S Sisodia ◽  
M B N Rao ◽  
Vijay Mahajan ◽  
V Leeladhar ◽  
M P Vasimalai ◽  
...  
Keyword(s):  
Interest Rates ◽  
Financial Services ◽  
Banking System ◽  
The State ◽  
Microfinance Institutions ◽  
Rural Finance ◽  
The Poor ◽  
Role Of The State ◽  
Financial Exclusion

In India, when we talk about rural finance, the stereotype offered is that of a banking system that fails to reach out to the poorer clients and, when it does, fails to recover the money so disbursed. The counter-point offered is usually the magic wand of microfinance. This Colloquium was an interface between leading bankers and microfinance practitioners in India to examine where these two worlds meet and how they could learn from each other. The discussions were organized around three themes: a) the legacy of the banking system, b) the limitations of microfinance, and c) an assessment of the potential. On the issue of legacy, the message was clear that the intervention of the state in certain aspects has been undesirable. These areas were clearly identified as granting general pardon for loans, tinkering around with interest subsidies, and interfering with the commercial aspects of banking. The limitations of the microfinance institutions were in terms of their sustainability and their inability to draw commercial capital and grow rapidly. However, these limitations were partly seen as a consequence of regulatory apathy and support from the state both in terms of formulating and articulating a regulatory framework and also in terms of the central bank being reluctant to supervise the efforts. These did not help in enhancing the legitimacy of microfinance institutions. The participants saw a great potential in the rural markets which were beyond agriculture. The emerging sectors were identified as construction, non-farm enterprise, handloom, clusters that involve garment making and quarrying, etc. According to them, there was scope for both the banks and the microfinance institutions to intervene. The following points emerged from the discussion: Rural finance has suffered from interventions from the state in the past. While some interventions have been positive, they have harmed the sector when compromises such as write-offs have been made. Microfinance has emerged as an important mechanism to reach out financial services to the poor. There are interesting lessons from this for the banks to adopt. There are problems for the microfinance institutions in the form of regulatory and supervisory apathy. This leads to financial exclusion of large segments of the poor. There is a huge market for financial services — both loans and savings. Innovations across the world indicate important breakthroughs in delivery of financial services. These can be implemented provided the regulatory impediments are removed. The issue of risk management has to be systematically addressed. The role of the state, wherever positive, has been effective and, therefore, this should be sharply defined to see how the state could contribute to this sector. The issue of interest rates continues to be vexatious and needs to be addressed urgently.

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