Mobile Money for the Unbanked in Emerging Markets

Mobile money, together with mobile broadband, is likely to be the primary growth engine for emerging market mobile network carriers. The service is gaining popularity and is beginning to contribute considerably to telecom income. There are still 2 billion individuals worldwide who do not have a bank account. This group is primarily located in less developed areas (Africa, part of Asia, and Latin America). A typical use case of a distant worker sending money to the family for living expenses is highly expensive for persons who do not have financial inclusion. Mobile penetration is substantially higher, allowing for these remittances to be sent in a cost-effective and simple manner. Because the system is based on feature phones and 2G technology, end users do not need to have the most recent smartphone or mobile broadband (SMS or Unstructured Supplementary Service Data-USSD channel). The most common application is domestic remittance. Bill payments and merchant payments are two others. International remittances are now feasible across various operators as well (cross-MNO agreements). Globally, there were already more than 100 million active mobile money accounts in 2014, with services available in around 90 countries.

Financial inclusion and digital banking on an emergent economy

PurposeTo analyze financial inclusion through digital banking in order to identify how digital banking is including or excluding different types of populations in an emergent economy.Design/methodology/approachChi-square statistical tests were conducted to test the relationship between demographic variables (i.e. gender, region, locality and age) with having a digital banking account, types of services and reasons for not using them. As an example of an emergent economy, the Mexican Financial Inclusion Survey database was used, which includes stratified and clustered sampling.FindingsHaving a bank account with digital banking is related to gender. Women are more excluded than men, demonstrating a gender gap in access to digital banking accounts. Moreover, having a bank account with digital banking depends on the region. In regions where digital banking is more developed, the population uses a wide variety of digital banking services, in contrast to less developed regions. About the size of the locality, the lack of financial inclusion via digital banking is more common in rural contexts or small cities, demonstrating the exclusion of this type of population.Research limitations/implicationsThis study is conducted with data from the latest Mexican Financial Inclusion Survey. Since the National Institute of Statistics and Geography (NISG) in Mexico previously conducted the study for exploratory purposes, it was not possible for the researchers to modify the variables.Practical implicationsThe results might be considered on similar emergent economies to promote financial inclusion of vulnerable groups such as women, people living in underdeveloped regions, rural areas, small cities and elders. These findings may provide criteria for both government agencies and banking institutions to make efforts focused on including these population groups that have not been financially included through digital banking.Originality/valueIdentifying the barriers that affect financial inclusion, such as gender, region, size of the city and age can help to guide efforts to achieve greater economic freedom and quality of life for diverse types of populations. Although the study is carried out in an emerging economy, the results can also shed light on how to address these forms of exclusion that occur in different types of economies. It is understood that the lack of financial inclusion is a limitation to the economic freedom and quality of life to which everyone should have access, hence the relevance of the article.

Ethical and economic implications for an accounting office that offers bundled services with a bank account

Purpose: The profession of accountant as a profession of public trust is related to observing ethical and legal standards. In the course of his work, an accountant who offers his services on the market should consider the interests of the stakeholders of signed contracts, and due to the nature of his business, he should constantly improve his professional qualifications and guarantee independence. The aim of the article is to examine the ethical and economic effects of cooperation between an accounting office and a bank that bundles accounting services with a current account. Methodology/approach: The analysis focuses on the cooperation agreement between the accounting office and the bank as part of the current account services offered by the bank that come bundled with accounting. For the analysis, the following research methods were used: analysis of the scientific literature in the field of accounting and economics, case study considered in the context of Freeman, and methods of deduction and synthesis. Findings: Based on the analyzed agreement, a significant inequality was found between the benefits and obligations of individual signatories. Attention is also paid to the implica-tions of signing an agreement of this type for other market participants. Originality/value: The article is part of a scientific and practical discussion on the ethical and economic risks associated with signing a cooperation agreement between an account-ing office and a financial market institution in the form proposed by the bank. Keywords: outsourcing, stakeholder theory, ethics in accounting, bookkeeping services, accounting offices

Linkage Sharia Banking and Sharia Fintech to Support Halal Industry in Indonesia

The purpose of this study is to describe the development financing of sharia banking, the development of sharia fintech, the development of the halal industry, and the concepts offered in the form of linkage between sharia banking and sharia fintech to support the halal industry in Indonesia. Research uses qualitative method library research. Data sources used are secondary, including Financial Services Authority, Bank Indonesia, LPPOM MUI, and other sources. Data collection technique used library relevant sources theme. Analytical technique used descriptive qualitative, describes development financing sharia banking, sharia fintech, halal industry, and forms linked them for halal industry. Results show growt financing sharia banking December 2020 to August 2021 BUS working capital SMEs grew 4.81 percent. UUS investment SMEs grew 0.86, and investment BPRS grew 5.96 percent. Sharia fintech assets fell -0.42 percent, and players fell 10 percent. Certified halal products 2021 grew 2,531.49 percent. Spending on halal industry food sector is 77.23 total other. Linked between sharia banking and sharia fintech support halal industry, funding business development is provided. Payment instruments can synergize requiring use sharia bank account. Sharia banking and sharia fintech synergize in assisting and marketing products for industry get financing.

Bank Branches and COVID-19: Where are Banks Closing Branches during the Pandemic?

In the decade prior to the COVID-19 pandemic, bank branches were closing at a steady rate. Additionally, households with a bank account increasingly adopted mobile or online banking for at least a portion of their banking needs. As COVID-19 dramatically changes the desire and willingness for consumers to have in-person interactions, it may accelerate both of these trends and lead to a permanent shift in how people access financial services.

Prepaid debit cards and banking intention

PurposeThis study examines the relationship between prepaid debit card use and the intention to open a bank account within twelve months. The Transtheoretical Model (TTM) of Behavior Change helped to conceptualize one's stage in the process of changing from unbanked status if desired. The Theory of Planned Behavior (TPB) provided a framework to examine factors that influence banking intention. Prepaid debit card use is considered a social norm as it is a popular alternative to banking, and these accounts have increasingly mimicked bank account features in recent years.Design/methodology/approachThree in-depth focus group interviews with low-income respondents were first conducted in 2012, which revealed a prolific use of prepaid debit cards. Most participants had previous banking history, and despite negative experiences, some requested information about banking terms and “free” banking. These themes and previous studies informed a TPB-based biprobit model, which was estimated using data of an unbanked sample from 2013, 2015 and 2017 waves of the US Survey of Unbanked and Underbanked Households.FindingsThough there was banking interest in the focus groups, no significant empirical association was found between recent prepaid debit card use and banking intention. Going deeper with another sample, we found that current cardholders were equally likely to have become recently banked or to be long-term unbanked but less likely to be long-term banked. Also, factors such as a more recent relationship with banks, use of other alternative financial services for transactions and credit, smartphone ownership, and trust increase banking intention.Research limitations/implicationsThe main limitation of the study is the cross-section quantitative data. Future research may track banking status over time, particularly as financial technology (fintech) evolves with alternatives that may influence banks and customers to adapt.Practical implicationsTo compete with “leapfrog” fintech banking alternatives, bank managers should consider utilizing customer segmentation to target “at-risk” customers and former customers with products and terms tailored to meet their banking needs. Banks can also tailor digital products to capture markets in banking desserts through mobile phones.Originality/valueThis mixed-methods study is unique in that it builds on insights from earlier in-depth interviews with real unbanked groups to examine a trend in prepaid debit card use and the impact on banking interest.

Does Access to Bank Accounts as a Minor Improve Financial Capability? Evidence from Minor Bank Account Laws

Banking the unbanked is a common policy goal, but should this include access to bank accounts for minors? This study estimates how teenagers' access to bank accounts affects their financial development. Using variation in state laws, we show policies that permit access to independently-owned accounts increase account ownership at age 16 through age 19, although by age 24 those young adults are banked at similar rates to teens who grew up in states that do not allow minors to own accounts independently. Teens who had access to independently-owned accounts use fewer high-cost alternative financial services (like payday loans) through age 20—but are then more likely to use AFS, particularly check-cashing services, from age 21 through 24. Using credit records, we show that access to non-custodial accounts has no effects on credit scores in the short-run, but lower credit scores and more loan delinquencies at ages 21 through 24. While these state laws promote financial inclusion for teenagers, the young people who take on accounts may experience negative consequences in the longer run.

BANKING FACILITIES IN TRIBAL DOMINATED RURAL AREAS - A CASE STUDY OF HEZAMARA BLOCK, MOHANPUR, TRIPURA

A bank is a financial institution licensed to receive deposits, make credits and provide other banking facilities – transactions,payments and insurance.By the way of implementing the concept of financial inclusion,a vast section of the rural disadvantaged tribal people in India was gradually coming under the ambit of formal banking services.As per the report of the World Bank's (2017) Global Findex shows that nearly 80 percent of the people in India had a bank account. However a significant portion of tribal people in India are excluded from the ambit of the banking facilities in the country. In this background the present paper aims to assess the level of access to banking facilities among the tribal people of Hezamara Block of Mohanpur,Tripura and to study their awareness level about financial products and services offered by the banks.The present study is based on primary data collected from the 200 tribal households in Hezamara Block through a set questionnaire and discussion.It has found that 100 percent of sample tribal respondents are having bank accounts and majority of the respondents have their bank accounts in Tripura Gramin Banks (TGBs) and Tripura State Co-operative Banks (TSCBs) respectively.