scholarly journals Household usage of financial services around the world and Ukraine

2020 ◽  
Vol 75 (4) ◽  
pp. 34-56
Author(s):  
Yu. I. Shapoval ◽  
◽  
◽  
Keyword(s):  
Developing Countries ◽  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Labour Force ◽  
High Income ◽  
Financial Inclusion ◽  
The Internet ◽  
Financial Account

Under the Findex dataset, paper suggests a comparative assessment of the usage of financial accounts by groups (developing countries, high-income countries, and Ukraine). Authors outlines the barriers, which arise while using financial services and both socio-economic (income level, employment), and demographic characteristics (gender, age) of users. The increase of account holders, who make payments using mobile phones and the Internet, was marked. Simultaneously, women and poorer users have less access to these technologies, both among the banked and unbanked population. In contrast to world indicators in Ukraine, the level of financial account ownership is the same for both women and men, but there is a gap between richer and poorer, and a gap across the active labour force. Having analysed the unbanked population’s causes and characteristics, Ukrainians’ distrust of financial institutions was a significant barrier to account ownership. An overview of the indicators of financial account usage to make public payments, receive wages in the private sector, settlements with business (utility payments, domestic remittances, payments from individual entrepreneurs) is under consideration. The intensification of digital payments in Ukraine is observed in comparison with the majority of developing countries. The holders use debit cards more often in developing countries as well as in high-income countries and Ukraine. It is highlighted that financial account ownership does not indicate the population’s addiction to use it to accumulate savings. In general, the level of financial inclusion from the demand side is growing globally, and faster in developing countries, including Ukraine, due to the outspread of mobile phones and the Internet. There is more active usage of financial services in high-income countries, despite inequality in age, gender, employment. Although Ukraine usage indicators correspond to the average, the level lags far behind the indicators of high-income countries. It has been revealed that people in high-income countries owning financial account are more likely to be economically active, to save and borrow from financial institutions than those living in developing countries, who prefer informal ways of saving and lending. A low level of penetration of deposits and loans among individuals was noted alongside activation of non-cash payments. It is substantiated that the high level of financial inclusion of the population depends not only on the possession of a financial account but also on its usage mechanisms. The ways of increasing the use of financial services are identified, such as mobile payments, digitalisation of private and public payments, and an increase in financial literacy.

scholarly journals Digital Financial Services: Prospects and Challenges

2021 ◽  
Vol 24 ◽  
pp. 1-25
Author(s):  
Martha Gertruida Van Niekerk ◽  
Nkgolodishe Hermit Phaladi
Keyword(s):  
South Africa ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Recognition System ◽  
Financial Inclusion ◽  
Market Abuse ◽  
Lack Of Information ◽  
Digital Identification ◽  
Verification Methods

Digital financial services (DFSs), being financial services accessed and delivered through digital channels, have grown rapidly in South Africa as well as globally. The adoption of the technology for DFSs has led to an increase in financial inclusion, enabling more individuals and businesses to have access to useful and affordable financial products and services, where payments, savings, credit, investment and insurance are included. Through the Financial Sector Regulation Act 9 of 2017 financial inclusion was statutorily enacted for the first time. The regulators are now empowered to insist that financial institutions take proactive steps to expand financial inclusion and can take the necessary steps to enforce these powers. One of the factors that have an influence on whether consumers will adopt DFSs is consumers' perspectives of DFSs. Lack of information and knowledge combined with the cost of data negatively influences the adoption of DFSs. The transfer of information to unbanked people in South Africa with regards to DFSs should be enhanced by the state as it strives to improve financial literacy. DFSs are susceptible to financial crimes like fraud, money laundering, terrorist financing, bribery, corruption and market abuse. The challenges that threaten the interests of customers should be addressed by stricter information verification methods when transacting with clients online. Technological detectors and digital identification should be used more effectively to verify customers and to alert authorities to suspicious transactions. Financial institutions might consider authenticating online transactions by thumb-print or a voice recognition system. This paper emphasises that because of the prospects of greater and deeper financial inclusion in South Africa, the use of DFSs has to be improved and developed and the challenges have to be constructively addressed to unleash the true potential thereof.

Global Digital Divide

2011 ◽  
pp. 1664-1670 ◽  
Author(s):  
Nir Kshetri ◽  
Nikhilesh Dholakia
Keyword(s):  
Developing Countries ◽  
Mobile Phones ◽  
Low Income ◽  
High Income ◽  
Income Country ◽  
The Internet ◽  
Global Trade ◽  
Technology Products ◽  
Global Digital Divide ◽  
Telecommunications Services

Despite rapidly falling costs of hardware, software and telecommunications services, a wide gap persists between rich and poor nations in terms of their capabilities of accessing, delivering, and exchanging information in digital forms (Carter and Grieco, 2000). According to a report published by the United Nations Conference on Trade and Development in 2006, a person in a high-income country was more than 22 times likely to use the Internet than someone in a low-income country (UNCTAD, 2006). The ratios were 29 times for mobile phones and 21 times for fixed phones. An estimate suggested that more than 95% of e-commerce transactions in 2003 were industrialized countries (Tedeschi, 2003). Another estimate suggested that 99.9% of business-to-consumer e-commerce in 2003 took place in the developed regions of North America, Europe, and Asia Pacific (Computer Economics, 2000). This is a form of commercial divide (UN Chronicle, 2003). Another estimate suggests that 80 percent of the global trade in high technology products originates from Europe, the U.S., and Japan (Bowonder, 2001) and 92 % of the patents granted in the world are owned by the members of Organisation for Economic Co-operation and Development (Archibugi and Iammarino, 2000). Whereas high-income countries have income 63 times that of low-income countries, the respective ratios are 97 for PCs, 133 for mobile phones, and over 2,100 for Internet hosts (Dholakia and Kshetri, 2003). While reliable data on e-commerce transactions are not available, the ratio is likely to be even higher for e-commerce transactions since e-commerce is virtually non-existent in many developing countries. The pattern indicates that the gap between developed and developing countries is wider for more recent technologies such as PC, mobile phone, and the Internet than for technologies which were introduced earlier. This article provides an assessment of three computer networks that redefine the conventional definition of market value by allowing developing nations and communities (Brooks, 2001) reap the benefits of modern ICTs: Global Trade Point Network (GTPNet) and Little Intelligent Communities (LINCOS).

scholarly journals IMPACT OF MOBILE PHONES AND INTERNET USE ON FINANCIAL INCLUSION: EMPIRICAL EVIDENCE FROM THE EU POST-COMMUNIST COUNTRIES

2021 ◽  
Vol 0 (0) ◽  
pp. 1-20
Author(s):  
Yilmaz Bayar ◽  
Marius Dan Gavriletea ◽  
Dragoş Păun
Keyword(s):  
Czech Republic ◽  
Financial Market ◽  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Services ◽  
Market Access ◽  
Cellular Phone ◽  
Financial Inclusion ◽  
Internet Usage ◽  
Mobile Cellular

Poverty alleviation has become one of the biggest challenges for many countries and access to financial services is considered to be a key driver of development and economic growth. Finding solutions that can break down barriers that poor people are facing to access formal financial services has become a major concern for researchers, governments, financial institutions. Financial services must reinvent themselves and the adoption of new technology is a crucial key to overhaul their operations and to find innovative solutions to manage customer expectations. The escalation in access and penetration level of mobile phones and the Internet can improve financial inclusion by facilitating easy access to financial services, by providing secure transaction platforms, by reducing transaction costs, by providing a competitive business framework. There has been relatively limited research on the impact of Internet and mobile phones use on financial inclusion, therefore our main purpose was to investigate this linkage in a sample of 11 post-communist countries of the European Union from 1996–2017 using panel cointegration and causality analyses. Firstly, we investigated whether mobile cellular phone subscriptions and the rate of Internet usage affect financial institutions’ access; secondly, we analysed the impact of these variables on financial market access. Results indicate that mobile cellular phone subscriptions positively affect both financial institution access in countries like Hungary, Latvia, Lithuania, Poland, and Slovenia and financial market access in Bulgaria, Croatia, and Hungary. Also, a negative relationship between mobile cellular phone subscriptions and financial institution access was noticed in the Czech Republic and regarding financial market access in the Czech Republic and Poland. Our findings also indicate both positive and negative relationships between Internet usage rates and financial institutions and financial markets access. By increasing Internet usage we can improve access to financial institutions in Bulgaria, Croatia, Czech Republic, Hungary, and Poland and we can increase financial markets access in Latvia and Slovenia.

scholarly journals Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 277-299
Author(s):  
Salihah Sharizan ◽  
Nur Harena Redzuan ◽  
Romzie Rosman
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Financial Inclusion ◽  
Primary Data ◽  
Structured Interviews ◽  
Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

scholarly journals MEASURING FINANCIAL INCLUSION AND ITS DETERMINANTS AMONG THE SMALLHOLDER FARMERS IN ZIMBABWE: AN EMPIRICAL STUDY

2020 ◽  
Vol 8 (3) ◽  
pp. 266-281
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Smallholder Farmers ◽  
Education Level ◽  
Financial Inclusion ◽  
Farm Income ◽  
The Government ◽  
To Come

The study sought to assess the levels of financial inclusion among the smallholder farmers and to investigate its determinants among the same. The study employed a household measure to measure the level of financial inclusion and multiple regression to assess the determinants of financial inclusion. The results indicated that the level of financial inclusion among the smallholder farmers was low because the percentage of households who were actively participating in the formal financial system was below 27 per cent below 50 per cent. The investigation on the driving factors of financial inclusion indicated that off-farm income, education level, distance, financial literacy and age of the household were the significant variables in explaining the determinants of financial inclusion among the smallholder farmers in Manicaland Province of Zimbabwe. Therefore, the study discovered that it is important for the government of Zimbabwe and financial institutions to form partnerships to come up with policies that ensure that smallholder farmers are included in the formal financial market and these policies should motivate households to use the formal financial services. Also, the crafted should strive to remove all the barriers to financial inclusion among the smallholder farmers. For instance, looking at farmers, many farmers are finding it difficult to access loans due to lack of collateral security, so banks need to come up with services and products that are tailor-made for the smallholder farmers especially on credit, services that allow smallholder farmers to borrow.

scholarly journals DIGITALISASI KEUANGAN SYARIAH MENUJU KEUANGAN INKLUSIF: KERANGKA MAQASHID SYARIAH

2019 ◽  
Vol 11 (1) ◽  
pp. 55
Author(s):  
Irfan Nurfalah ◽  
Aam Slamet Rusydiana
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Institution ◽  
Public Information ◽  
Financial Inclusion ◽  
The Internet ◽  
Digital Innovation ◽  
Financial Products ◽  
One Stop ◽  
Main Factors

Sharia financial literacy and financial inclusion in indonesia are still in the lower level, Indonesian’s Financial Services Authority launched in 2016 that the data of sharia financial literacy is about 8.11% and sharia financial inclusion only about 11.06%. The easiness of access against sharia financial products and services are the main factors that caused both are still in the lower level. In case of enhancement of society knowledge and access needs the innovation to simplify the utilization of sharia financial products and services. One of the best innovation must be developed by Sharia Financial Institution is digitalization.The digitalization will affect the increase of sharia financial literacy and inclusion index, because this era is an open public information, most people now are easy to access the internet and also the smartphone users in Indonesia are increasing every year. So this is an opportunity for Sharia Financial Institution to combine their products and services with the latest technology. The author makes a digital innovation solution to accommodate these opportunities, named "Connected, One Stop Solution" which are 20 features that can be enjoyed by all segments of society. In addition, the 20 features are adapted to sharia rules which refer to maqashid sharia.

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.

Connecting the poor: the internet, mobile phones and financial inclusion in Africa

2018 ◽  
Vol 20 (6) ◽  
pp. 568-581 ◽  
Author(s):  
Olaniyi Evans
Keyword(s):  
Mobile Phones ◽  
Empirical Studies ◽  
Financial Inclusion ◽  
The Internet ◽  
African Countries ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Developed Economies ◽  
Causality Tests ◽  
The Relationship

Purpose The increased adoption of internet-enabled phones in Africa has caused much speculation and optimism concerning its effects on financial inclusion. Policymakers, the media and various studies have all flaunted the potentials of internet and mobile phones for financial inclusion. An important question therefore is “Can the internet and mobile phones spur the inclusion of the financially excluded poor? This study therefore aims to examine the relationship and causality between internet, mobile phones and financial inclusion in Africa for the 2000-2016 period. Design/methodology/approach The empirical analysis followed these three steps: examination of the stationarity of the variables; testing for the cointegration; and evaluation of the effects of the internet and mobile phones on financial inclusion in Africa for the 2000-2016 period using three outcomes of panel FMOLS approach and Granger causality tests. Findings The empirical evidence shows that internet and mobile phones have significant positive relationship with financial inclusion, meaning that rising levels of internet and mobile phones are associated with increased financial inclusion. There is also uni-directional causality from internet and mobile phones to financial inclusion, implying that internet and mobile phones cause financial inclusion. The study also shows that macroeconomic factors such as capital formation, primary enrollment, bank credit, broad money, population growth, remittances, agriculture and interest rate, as well as institutional factors such as regulatory quality are important underlying factors for financial inclusion in Africa. Originality/value In the literature, there is a dearth of research on the internet, mobile phones and financial inclusion, especially in Africa. Most of the related studies are conceptual and micro-based, with little empirical attention to the relationship and causality between internet, mobile phones and financial inclusion. In fact, this dearth of rigorous empirical studies has been attributed as the main cause of inadequate policy guidance in enhancing information communication technologies (Roycroft and Anantho, 2003), despite saturation levels in developed economies. This study fills the gap by evaluating the effects of the Internet and mobile phones on financial inclusion for 44 African countries for the 2000-2016 period.

scholarly journals FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG SMALLHOLDER FARMERS IN ZIMBABWE

2020 ◽  
Vol 8 (3) ◽  
pp. 168-182
Author(s):  
David Mhlanga ◽  
◽  
Steven Henry Dunga ◽  
Tankiso Moloi ◽  
◽  
...  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Financial Education ◽  
Financial Inclusion ◽  
Strong Impact ◽  
Development Goals ◽  
The Government ◽  
The Impact

The study sought to investigate the impact of financial inclusion on poverty reduction in Zimbabwe among the smallholder farmers. It is alleged that financial inclusion can help in achieving seven of the seventeen sustainable development goals (SDGs), which include poverty eradication in all its forms everywhere, ending hunger, achieving food security, ensuring improved nutrition as well as promoting sustainable agriculture and many others. Using the simple regression method, the study discovered that financial inclusion has a strong impact on poverty reduction among smallholder farmers. The study went on to discover that, for the government to tackle poverty especially among the smallholder farmers, it is important to ensure that farmers do participate in the financial sector through saving, borrowing and taking out insurance among other services. So, it is important for the government of Zimbabwe to fully implement policies that encourage financial inclusion such as making sure that farmers find it easy to access financial institutions and encouraging financial institutions to review transaction costs like bank account opening charges periodically, implementing financial education programs among the farmers because these variables are important in influencing farmers to participate or preventing them from using financial services.

scholarly journals Improvement of the Financial Services Market in the Context of Ensuring the Financial Inclusion

2021 ◽  
Vol 8 (523) ◽  
pp. 127-134
Author(s):  
O. V. Zhulyn ◽  
Keyword(s):  
Behavioral Finance ◽  
Financial Literacy ◽  
Financial Services ◽  
Digital Technologies ◽  
Financial Service ◽  
Financial Inclusion ◽  
Low Incomes ◽  
Analytical Research ◽  
Low Levels ◽  
Theoretical Foundations

The article is aimed at studying the theoretical, organizational and methodical aspects of financial inclusion; conducting an analytical research on the development of financial inclusion and its impact on the welfare of the population; formation of recommendations for improving the financial services market in the conditions of ensuring the financial inclusion in Ukraine. The theoretical foundations of financial inclusion and its components are considered, the author suggests to enclose therein the speed and security of obtaining a financial service, which is provided with the help of digital technologies, which is relevant in the context of the COVID-19 pandemic. The carried out analytical studies of financial inclusion in the world and in Ukraine have shown that its level is constantly growing and there are sufficient prerequisites for its development, including in the financial market the maximum number of the population who will be able to benefit from the use of financial services. As a result of the analysis, a framework for financial inclusion has been developed that allows identifying entities that are often unwittingly excluded from the financial services market – due to low levels of financial literacy, low incomes or discrimination on the part of financial institutions. An important aspect of the implementation of the concept of financial inclusion is the motivation to use financial services, using behavioral finance methods for this – not only by those who are forced to exclude, but also those who voluntarily refused to use them. The publication proposes recommendations and instruments for improving the financial services market, which will increase the level of financial inclusion, which in turn will contribute to economic growth, mobilization of savings, their preservation and increase, introduction of innovations and development of entrepreneurship.

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