The digital revolution in financial inclusion: international development in the fintech era

Purpose The purpose of this paper is to establish the mediating effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households in Uganda with a specific focus on Mokono district. Design/methodology/approach The study adopted a cross-sectional design. Data were analyzed using structural equation modeling (SEM), which adopted Analysis of Moment Structures to test for mediating effect of financial literacy in the relationship between institutional framing and financial inclusion. Findings The results revealed that financial literacy had a partial mediating effect in the relationship between institutional framing and financial inclusion. Furthermore, the results indicated that while institutional framing has a direct effect on financial inclusion, it also exerts an indirect effect through financial literacy. This supports the argument that institutional framing that structure the way how poor households interpret, evaluate, comprehend and make sound financial decisions and choices, is enhanced by knowledge and skills acquired through financial literacy by poor households. Research limitations/implications This study has been limited by adopting only cross-sectional design and quantitative research approach, therefore ignoring longitudinal design and qualitative research approach. Besides, the study uses SEM bootstrap approach and ignores MedGraph method, which is also recommended for testing mediation. Practical implications Since the results suggest that institutional framing of poor households are partially enhanced by financial literacy to increase financial inclusion, policy makers, practitioners and managers of financial institutions should ensure extending financial literacy programs closer to the poor in order to expand the scope of financial inclusion beyond the current sphere. Indeed, financial literacy programs will boost cognitive abilities of poor households resulting into better financial decisions and choices and, hence increase in demand and consumption of financial services. Originality/value The study significantly generates empirical evidence by testing the mediating role of financial literacy in the relationship between institutional framing and financial inclusion using SEM bootstrap approach. The study portrays the influential partial effect of financial literacy in enhancing institutional frames of poor households in order to cause improvement in financial inclusion. Indeed, financial literacy programs that entail acquisition of financial knowledge and skills boost cognitive abilities of poor households to easily interpret, evaluate, comprehend meanings, and take correct decisions and actions on financial matters. The mediating effect of financial literacy in the relationship between institutional framing and financial inclusion seems to be lacking in literature and theory. Thus, the paper is the first to relate the influential partial effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households, especially in a developing country context.

This paper explores the intersection of marketing, communication, banking, and fintech, with a focus on personalization in fintech marketing and enhancing customer communication for financial inclusion. Financial technology (fintech) has revolutionized the way financial services are delivered, offering innovative solutions that cater to diverse customer needs. One key aspect of this transformation is the emphasis on personalized marketing strategies, which enable fintech companies to engage with customers on a more individualized level, driving customer satisfaction and loyalty. Personalization in fintech marketing involves tailoring products, services, and communications to meet the specific needs and preferences of customers. This approach not only enhances the customer experience but also increases the likelihood of customer retention and acquisition. Fintech companies leverage customer data and advanced analytics to segment their audience and deliver targeted messages and offers, effectively addressing customer pain points and driving engagement. Moreover, effective customer communication is essential for promoting financial inclusion, particularly among underserved populations. Fintech companies can use various communication channels, such as mobile apps, social media, and chatbots, to reach customers who may have limited access to traditional banking services. By delivering relevant and timely information, fintech companies can empower customers to make informed financial decisions and improve their overall financial well-being. The paper also discusses the role of banking and fintech partnerships in driving financial inclusion. By collaborating with traditional banks, fintech companies can leverage existing infrastructure and customer networks to reach underserved communities. These partnerships enable fintech companies to offer innovative financial products and services to a broader audience, contributing to greater financial inclusion and economic empowerment. In conclusion, personalization in fintech marketing and effective customer communication are key drivers of financial inclusion. By adopting these strategies, fintech companies can better engage with customers, tailor their offerings to meet specific needs, and ultimately, contribute to a more inclusive financial system. Keywords: Fintech Marketing, Customer Communication, Financial Inclusion, Personalization, Banking.

The general objective of the study was to establish the influence of regulatory requirements on financial inclusion in Fintech Companies. Specifically, the study assessed the effects of customer protection and investor protection regulations on financial inclusion. This study adopted a descriptive research design. The target population was 38 Fintech companies. A population of 435 managers in Fintech companies were targeted. Stratified random sampling method was used to select the sample of 218 respondents. Primary data was collected using questionnaires. Pearson correlation coefficient and multiple regression was used in data analysis to establish the relationship between the variables. The study found that customer protection and investor protection regulations had significant relationships with financial inclusion. The study concluded that customer protection and investor protection were key attributes in financial inclusion in Fintech Companies and recommended that stakeholder regulations need a special focus in the management of Fintech companies.

Purpose The purpose of this paper is to examine the mediating role of social capital in financial literacy and financial inclusion relationship in rural Uganda. The major aim is to establish the role of social capital in the relationship between financial literacy and financial inclusion. Design/methodology/approach The paper adopts and uses MedGraph programme (Excel version 3.0), Sobel and Kenny and Baron tests to test the mediation effect of social capital in the relationship between financial literacy and financial inclusion. Findings The results reveals that social capital is a significant mediator in the relationship between financial literacy and financial inclusion of rural poor in Uganda. Financial literacy did not have a direct effect on financial inclusion, but through full mediation of social capital. Existence of social capital into the relationship boosts the relationship between financial literacy and financial inclusion by 61.6 per cent among rural poor households in Uganda. Thus, the finding suggests that with the absence of social capital, financial literacy may fail to enhance the level of financial inclusion among rural poor households in Uganda. Research limitations/implications This study adopted only single research approach using a questionnaire. However, future research through interview may be of importance. Besides, for the purpose of triangulation, a study involving financial institutions’ staff may be viable. Moreover this study was limited by the fact that it was cross-sectional. Furthermore, a longitudinal study may be useful in future to investigate the mediating impact of social capital spanning over a long period of time. Practical implications Managers, policymakers and financial inclusion practitioners should advocate and embark on building social capital among rural communities, so as to improve on the level of financial inclusion. Originality/value While a large body of research has been carried out on financial literacy, this paper is the first to test the mediating role of social capital in the relationship between financial literacy and financial inclusion, especially in rural Uganda. This study generates evidence and contributes to the powerful influence of social capital in enhancing the level of financial inclusion based on financial literacy.

PurposeIn recent times, various governments in the developing and emerging markets are increasingly embracing financial technology to help improve financial inclusion and integration within the governments' countries. One of the primary goals of using such technology is to reduce poverty. This paper explores Fintech innovations' effectiveness in developing and emerging markets in driving financial inclusion using Nigeria as a case study. The paper explores the challenges militating against financial inclusion and the role of government, financial institutions, and fintech companies in ensuring financial inclusion for the vast majority of the unbanked population in the developing and emerging markets.Design/methodology/approachThis paper is based on doctrinal, sociological, and comparative research methodologies. The researchers conducted a content analysis drawing on data from both primary and secondary sources, including existing legislation, journal articles, newspaper reports, and policy documents.FindingsThe research showed that the financial inclusion gap has expanded despite the government, regulators, and financial institutions' various efforts by developing various digital platforms, including encouraging the use of smartphones for mobile payments and automated teller machines (ATMs) and mobile money. Several reasons are responsible for the gap in financial inclusion: illiteracy, poor infrastructural facilities, intermittent power supply, poor mobile receptions, especially in rural areas, constant banks' network failures, unnecessary charges, information asymmetry and data privacy breaches, amongst others.Practical implicationsFinancial inclusion through fintech is essential in eradicating poverty in developing and emerging markets if adequately implemented. Therefore, this paper will be useful to researchers exploring how technology influences financial inclusion. The paper will also aid policymakers and practitioners in financial technology regulation to improve the effectiveness of policymakers and practitioners' policies and implementation strategies of financial inclusion in developing and emerging markets.Originality/valueThis research is significant, especially in developing and emerging markets, by exploring issues and challenges of fintech in promoting financial inclusion in challenging institutional contexts. This paper suggested potential areas for further research, particularly women's attitudes and expectations towards services provided by fintech companies and other financial institutions.

Financial inclusion through microfinance is found to promote resilience strategies of the poor as it has become more demand sensitive. Extant literature suggests that there have been perceptible changes in the living conditions of the rural poor mainly on the economic side and relatively on the social side owing to the role of self-help groups (SHGs). Further, it is widely believed that SHGs have had a positive impact on the poverty levels and standards of living of the poor and more particularly on the economic empowerment of women. Given this context, this study reviews the financial diaries of the poor and provides evidence of the impact of financial inclusion program on the poor beneficiary households in India. More specifically, this study answers the specific question: what is the impact of SHGs on the annual income of the participating poor households. Based on stratified random sampling this study uses the nearest-neighbor matching method to construct the control groups to estimate the program impact. Keeping in view the stabilization of the financial inclusion program, this study covers the financial inclusion beneficiaries in the Shimoga district of Karnataka state in India for the period 2010 – 2015. Using the Paired-Sample t-test and the difference-in-difference approach, the study notices a significant positive change in the income levels of the beneficiaries resulting in the resilience of the poor households. This study notices perceptible changes in the living conditions of the rural poor mainly on the economic side and relatively on the social side owing to the role of SHGs. Financial inclusion has a positive impact on the poverty levels and standards of living of the poor and more particularly on the economic empowerment of women. This approach has enhanced the resilience of the poor households as there has been an increase in the mean annual income to the extent of 72% from the pre-SHG situation to the after-SHG impact. The results suggest that the financial inclusion is more beneficial in strengthening the resilience of the poor households particularly that of the downtrodden classes in India. Further, these findings provide direction for policymakers and practitioners involved in building and measuring changes in household resilience. This study implies that effective implementation of financial inclusion program has greater benefits and a win-win situation for all the stakeholders.

Background: Innovative financial technologies (fintech) are gradually changing how financial transactions and processes are conducted. The adoption of fintech not only benefits the financial sector but can also have a broader impact on society. Due to their ability to provide customized services to a wide range of stakeholders, fintech is gaining traction and experiencing significant growth. Compared to traditional financial institutions, fintech companies can reach a wider audience and operate more efficiently. In addition to upending traditional financial services, fintech can also provide financial services to marginalized groups. We argue that fintech research and practice should focus on seizing opportunities and addressing challenges related to financial inclusion, especially in emerging markets. Method: We conducted a systematic literature review of 178 articles to understand the relationship between fintech and financial inclusion. Results: Our analysis highlights six fintech research themes: fintech and financial inclusion, fintech adoption and use, fintech and sectoral growth, fintech and lending, and technology shaping the fintech. We also present four future themes (basic, driving, niche, and emerging or declining research) that can accelerate financial inclusion. Conclusions: This study highlights the synergies between fintech and financial inclusion research. This study contributes to existing knowledge in three ways. First, the descriptive analysis maps existing research on fintech and financial inclusion. Second, the qualitative analysis provides a comprehensive overview of how fintech and financial inclusion topics is interconnected. Third, future research areas for fintech and financial inclusion were identified. In general, fintech democratizes financial inclusion for the unbanked and marginalized communities while reducing operating costs. Governments should promote financial inclusion among those most vulnerable and affected by global threats.

This study aims to determine the effect of financial literacy (financial education) and (financial knowledge) on financial inclusion in the fintech era in Indonesia and the effect of financial literacy (financial education) and (financial knowledge) on financial inclusion through the Fintech era in Indonesia. This research is a quantitative research. The population of this research is people throughout East Java. The sampling technique used was purposive sampling. The data collection technique of this research used literature study, and field research. This study uses the dependent variable, namely financial inclusion, while the independent variable, namely financial education and financial knowledge, while the moderating variable is financial technology. The conclusion of this study is that the financial education and financial knowledge variables have a negative effect on financial inclusion, while the fintech variable is able to mediate the strong influence of financial education and financial knowledge on financial inclusion. The results of this study provide an opportunity for other researchers to test the effectiveness of various financial inclusion strategies carried out by the government and universities in Indonesia, so as to obtain updated data for further updates.

The digital revolution in financial inclusion: international development in the fintech era

PurposeThe purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA).Design/methodology/approachThe paper uses the World Bank country-level data from 20 SSA countries for the year 2014.FindingsThe empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries.Research limitations/implicationsSome countries were excluded from the final analysis due to lack of data.Practical implicationsIn the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region.Originality/valueTo the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.

PurposeThe purpose of this paper is to report the findings on the mediating effect of social network in the relationship between institutional framework and financial inclusion in rural Uganda.Design/methodology/approachThe study employs a cross-sectional research design to collect data used to test for mediation under this study. Structural equation model (SEM) through use of bootstrap in the Analysis of Moment Structures (AMOS) was adopted to establish the existence and type of mediation by social network in the relationship between institutional framework and financial inclusion.FindingsSocial network had a partial mediating effect in the relationship between institutional framework and financial inclusion. In addition, institutional framework through its regulative, normative and cultural-cognitive pillars also exhibited a significant direct effect on financial inclusion. Besides, social network had a positive and significant effect on financial inclusion. This suggest that there exist both a direct effect of institutional framework on financial inclusion and an indirect effect of institutional framework through social network on financial inclusion.Research limitations/implicationsWhile the sample for this study was big enough, it limited itself to only poor households in rural Uganda. Besides, the current study adopted cross-sectional design, thus, leaving out longitudinal design to investigate the characteristics in the sample over time.Practical implicationsThe study makes significant empirical contribution and implications to financial inclusion policy makers on evidence of the critical role played by social network in indirectly enhancing the relationship between institutional framework and financial inclusion of the poor who are vulnerable to exclusion by main stream financial services’ providers.Originality/valueThe study recommends that social network, which acts as a conduit through which useful information flow and can be shared, plays a critical role in mediating the relationship between institutional framework and financial inclusion in rural Uganda. Therefore, the study contributes to existing body of literature by highlighting the mediating influence of social network in the relationship between institutional framework and financial inclusion, especially in rural Uganda.

Introduction. Financial inclusion in Ukraine is an important component of the country’s economic and social development. It provides availability and access to financial services and products for the entire population, regardless of their social status, financial condition and geographical location. Here are some key aspects of financial inclusion in Ukraine: banking sector, mobile money and electronic payments, development of macro-financial institutions, growth of financial literacy, regulation and protection of consumer rights, reduction of financial vulnerability, increasing role of international cooperation. Financial inclusion in Ukraine is an important factor for increasing the country’s economic well-being and stability. However, there are challenges, such as ensuring access to financial services in rural regions and increasing the level of financial literacy of the population, which require attention and solutions for the further development of this direction. The purpose of the article is to determine the features of the current state of financial inclusion in Ukraine, as well as to present the main trends of its development. Results. The article analyzes the difference between the concepts of “inclusion” and “inclusiveness”, presents their main features and differences, which further makes it possible to dis tinguish between these categories when studying the current state of economic processes. The main trends in the development of financial inclusion in Ukraine are determined based on the trends in the development of financial and economic inclusion in the world. The main features of the current state of economic inclusion in Ukraine are presented. Conclusions. According to the results of the study, it is proven that today, the state of financial inclusion in Ukraine shows a certain progress and expansion of access to financial services. However, there are still certain challenges and tasks that require attention and solutions for the further development of this direction. The main conclusions regarding the state and trends of the development of financial inclusion in Ukraine include the following: growing access to banking services, growth of electronic payments and mobile money, development of macro-financial institutions, focus on improving financial literacy, strengthening cooperation with international organizations. The presented research results make it possible to determine that financial inclusion is an important factor for increasing the economic well-being and stability of Ukraine. The presented trends show some progress in this direction, but it is necessary to continue work to ensure access of all citizens to financial services and further improve financial inclusion in the country.

Purpose Financial inclusion washing has not been considered to be a crime although it should be. This paper aims to present a discussion about financial inclusion washing. It was argued that financial inclusion washing is the deliberate or unintentional use of exaggerated claims or misleading claims to describe an entity’s commitment to increase the level of financial inclusion. Design/methodology/approach This paper used the conceptual discourse analysis methodology. Findings This paper showed that many entities are at risk of practicing financial inclusion washing such as international development organizations, aid organizations, government agencies, central banks, financial institutions, financial inclusion support groups and associations, among others. This paper also highlighted the manifestations, motivations and consequences of financial inclusion washing. This paper also identified ways through which entities can avoid financial inclusion washing. Originality/value The literature has not examined how exaggerated claims about financial inclusion efforts mislead people.

This study explores the impact of strategic alliances between banks and fintech companies on financial inclusion in Gorontalo. Although financial inclusion is essential for economic growth, many rural communities in Indonesia remain outside formal financial systems. Partnerships between banks and fintech firms offer a potential solution by combining regulatory reliability with technological innovation. Using a mixed-method explanatory sequential design, the study surveyed 200 respondents, including microenterprise owners and households, and conducted interviews with bank managers, fintech executives, and customers. Quantitative data were analyzed using descriptive statistics and multiple regression, while qualitative data provided contextual insights. The study measured the strength of strategic alliances through partnership intensity, service integration, and product innovation, and financial inclusion through access, usage, and quality. Results show that strategic alliances significantly improve financial inclusion, with the strongest effect on access, followed by usage and quality. However, barriers such as low digital literacy, weak infrastructure, and high transaction costs limit the full potential of these collaborations. The findings suggest that improving digital literacy and infrastructure support is crucial for strengthening the positive role of bank–fintech partnerships in promoting inclusive financial growth in Gorontalo.

The international banking system serves as the institutional basis for the functioning of the global financial markets. Being in the process of continuous development is its characteristic feature. Each international banking institution has its own specificity and structure. The purposes of their creation and the main functions are defined by their statutes, rules, and founding acts. Despite the diversity of the subject maps of the international banking system, they share a common goal – developing cooperation and ensuring the integrity and stabilization of the world economy, regulation of international economic relations, and ensuring the transnational movement of funds. Legal analysis of statutory activities of international regional development banks, and forms of their interaction. The first among the international regional development banks is the European Investment Bank (EIB), which was founded in 1958 by EU Member States. According to the Bank’s Statute, the objectives of the Bank are to develop the common market by investing funds in the development of Member States’ economies. A legal analysis of the EIB’s purpose, function and structure demonstrates that a regional financial institution was established in the European Region, which by its very nature is an international development which serves as a development not only in relation to EU Member States but also to other European countries. Changes in the geopolitical and economic situation in Europe in the late 1980s – early 1990s were one of the reasons for the creation of the European Bank for Reconstruction and Development, a fundamentally new interstate financial structure that had no analogues concerning either its founders or their goals and methods before. The aim was to create a single lending center for both the public and private sectors of the economy: cooperation between different departments of one international organization should be less complicated than cooperation between two international organizations. Having included the word bank in the Preamble to the Agreement, the Contracting Parties stated that they were establishing a multilateral financial institution that would help to achieve these goals, and create a new and unique structure for cooperation in Europe. With a European Development Bank in the European Region, the EIB, Member States have combined the capabilities and finances of an existing development with a new financial institution, which by its legal nature is a development – EBRD. Membership of two international organizations in an international regional development simultaneously is a new thing in the international banking law. In fact, the European Union is a member of the EBRD three times: EU Member States are members of the European Investment Bank and also members of the EBRD.The creation and operation of European development banks is a sample of interaction forms between international regional development banks, and integration processes observed in the international financial system, within which the international law performers solve current problems, in particular in the political and financial spheres.The article is devoted to the legal analysis of the activities of international regional development banks, forms of their interaction. The purpose, goals, functions, structure of regional development banks are investigated. Forms of their interaction are considered