Group Borrowing : Microfinance-Tontine Sustainable Co-Existence. Case Of Cameroon

This paper uses a case study approach to examine the role of group account in Microfinance institutions on tontine's survival. The research investigates on the origin of funds deposited in group accounts, and its importance to group members. The collection of respondents’ perceptions will contribution to promote digital-group account – accessible both on apps and handset – for the group’s benefit. We interviewed ten participants coming from the critical stakeholders of rural finance in the community of Balessing in the west region of Cameroon. We performed a textual and content analysis of the qualitative data collected. The results showed that group accounts contribute to the financial, managerial and social development of tontine group – factors indispensable for strong cohesion and group survival. Moreover, group accounts also benefit microfinance institutions by contributing to their growth and development. From the results mentioned above, we made recommendations to consolidation the link between microfinance institutions and tontine groups through group accounts.

Machine Learning (ML) Technologies for Digital Credit Scoring in Rural Finance: A Literature Review

Rural credit is one of the most critical inputs for farm production across the globe. Despite so many advances in digitalization in emerging and developing economies, still a large part of society like small farm holders, rural youth, and women farmers are untouched by the mainstream of banking transactions. Machine learning-based technology is giving a new hope to these individuals. However, it is the banking or non-banking institutions that decide how they will adopt this advanced technology, to have reduced human biases in loan decision making. Therefore, the scope of this study is to highlight the various AI-ML- based methods for credit scoring and their gaps currently in practice by banking or non-banking institutions. For this study, systematic literature review methods have been applied; existing research articles have been empirically reviewed with an attempt to identify and compare the best fit AI-ML-based model adopted by various financial institutions worldwide. The main purpose of this study is to present the various ML algorithms highlighted by earlier researchers that could be fit for a credit assessment of rural borrowers, particularly those who have no or inadequate loan history. However, it would be interesting to recognize further how the financial institutions could be able to blend the traditional and digital methods successfully without any ethical challenges.

Analysis of Policy Financial Assets Model under the Concept of Rural Revitalization in Xinjiang

In recent years, with the rapid development of rural finance in Xinjiang, the problem of resource allocation and support has become increasingly prominent, which restricts the development of rural economy in Xinjiang. Based on this, this paper combs the policy financial asset model under the concept of Rural Revitalization in Xinjiang, and defines the concept of rural financial deepening. This paper analyzes the current situation of rural financial deepening in Xinjiang, and theoretically explains the reasons of rural financial repression in Xinjiang. This paper constructs a comprehensive evaluation index system of financial deepening and carries out empirical analysis. The results show that the total financial investment in Xinjiang has played an important role in promoting the deepening of rural finance, and the effect is very obvious. However, in the process of rural financial deepening in Xinjiang, the two dimensions of financial structure and financial efficiency did not play their due role, but became obstacles to its deepening.

Rural Financial Development Impacts on Agricultural Technology Innovation: Evidence from China

Agricultural technology innovation is key for improving productivity, sustainability, and resilience in food production and agriculture to contribute to public health. Using panel data of 31 provinces in China from 2003 to 2015, this study examines the impact of rural financial development on agricultural technology innovation from the perspective of rural financial scale and rural finance efficiency. Furthermore, it examines how the effects of rural financial development vary in regions with different levels of marketization and economic development. The empirical results show that the development of rural finance has a significant and positive effect on the level of agricultural technology innovation. Rural finance efficiency has a significantly positive effect on innovation in regions with a low degree of marketization, while the rural financial scale has a significantly positive effect on technological innovation in regions with a high degree of marketization. Further analysis showed that improving the level of agricultural technology innovation is conducive to rural economic development. This study provides new insights into the effects of rural financial development on sustainable agricultural development from the perspective of agricultural technology innovation.

Rethinking the Role of Grain Banks in China’s Agriculture

Grain banks are an organizational innovation and unique phenomenon in China that help reduce food losses and food security costs. It collects scattered food from the farming community into centralized storage and circulates it, thereby realizing asset mobilization and appreciation. This article first elaborates on the definition, function, and evolution of China’s grain banks through a literature review. Then, we used survey data of face-to-face interviews and field visits to a grain bank company in Hubei Province to analyze the economic rationale of grain bank development, including micro and macro conditions of grain bank development and its operating mechanisms. In addition, from the perspective of key stakeholders such as farmers, grain bank companies, and the government, we also studied the challenges of grain banks. We found that, in addition to providing many economic and social benefits in the form of food security and improved farmer income, grain banks still face many challenges in the new era. These include the ambiguity of property rights, lack of institutional structure, low efficiency of state-owned grain banks, and exploitation of loopholes by grain dealers. We propose to implement the supply-side reforms, clarify property rights, improve the supervision and management of grain banks, promote the privatization of grain banks, and take advantage of rural finance to realize the industrialization of the whole sector.

Rural finance and accounting management in small-scale farmers of Los Rios – Ecuador

La provincia de Los Ríos, es una de las más importantes productivamente hablando, gracias a su repercusión positiva en la economía ecuatoriana y sus múltiples fincas y agroindustrias dedicadas a la producción agrícola tanto para consumo interno y exportación. El objetivo de esta investigación es analizar la gestión financiera de productores a pequeña escala dedicados principalmente a la agricultura familiar. El estudio se llevó a cabo en la provincia de Los Ríos, donde se explican los principales problemas analizando los pros de llevar una gestión contable para los agricultores, así como los problemas de no mantener registros financieros. Los datos se recopilaron a través de una encuesta semiestructurada que se realizó en productores a pequeña escala que se dedican a la agricultura familiar. Se utilizó estadística descriptiva para explicar la hipótesis principal del estudio. Como principal resultado, más del 50% de los productores, incluso cuando presentan ingresos bajos, tienden a llevar un registro de ingresos y gastos, de manera formal o informal, independientemente de no contar con servicios de capacitación o extensión adecuados que respalden esta gestión. Los productores de Los Ríos tienen una gran fuente de biodiversidad, lo que indica que cosechan aproximadamente 79 especies y respaldan el autoconsumo y la seguridad alimentaria. Finalmente, se presentan en la discusión implicaciones de políticas pública para la toma de decisiones.