Unlocking housing capital: semi-legal titles & informal credit in Delhi’s unauthorised colonies

The last decade has witnessed significant research interest in the area of financial literacy with specific attention on poverty. However, based on evidence of over 80 papers published since 2014 by the Consultative Group to Assist the Poor, it was revealed that there is no significant comprehensive explanation of how the usage of financial services improves people’s financial satisfaction at retirement. To this effect, this study sought to examine the extent to which the usage of both formal and informal financial services affects the retirement preparedness of people engaged in the informal sector of Cameroon. In light of this, the study aimed at justifying the continuous utilization of informal financial services at the expense of formal financial services even when financial service users have access to formal financial services. The study examined individual levels of investment literacy, cash-flow management literacy, credit management literacy, and the usage of formal and informal financial services. The study used the geographical clusters to proportionately select 400 economically active users of financial services from the seven sub-divisions of Yaoundé. Survey data were quantitatively analyzed to test the statistical relationships using the Covariance-Based Structural Equation Model [CB-SEM] with the aid of SPSS and AMOS 24 statistical packages. Findings indicated that the usage of formal financial services and informal financial services hace positive significant statistical effects on retirement preparedness. Also, the study finds that the usage of formal financial services and informal financial services has positive significant mediating effects on financial literacy and retirement preparedness. The study thus proposes the implementation of a dualistiec financial inclusion model that recognizes that both the formal and informal financial services are beneficial in the improvement of individual’s retirement preparedness in the informal sector of Cameroon and as well as in the context of developing countries.

Purpose: Access to financial resources has been identified as one of the ways of boosting farm output, and this can be achieved through improving access to and usage of formal financial services. The study thus evaluated the effects of financial inclusion on cassava production among small-scale farmers in Enugu state, Nigeria. Methodology: A multi-stage sampling technique was employed in the selection of 162 cassava farmers in Enugu State. The data collected were analyzed using descriptive statistics, multiple regression analysis, and Likert scale rating Technique. Finding: Empirical results showed that the average of all respondents who participated in the survey was 43 years and 62.35% of the total respondents were males. Additionally, the result showed mean household size (4.75), mean years of cassava farming experience (5.86 years), and mean farm size (0.45 hectares). The majority (88.30%) of the farmers had access to a formal financial institution and the average amount saved in the last 12 months was ₦162,154.32. The multiple regression analysis showed that socioeconomic characteristics influencing cassava output are household, farming experience, farm size, farm income, and input cost. Additionally, financial inclusion positively influenced cassava output through access to formal financial institutions and level of savings. Originality: The findings revealed the positive effect access and usage of formal financial services have on the economy. Therefore, the study recommends that farmers be encouraged to improve their usage of formal financial services such as improving their savings levels at banks and banks to reduce charges on formal financial services.

The use of formal financial services has been associated with increased financial wellbeing and overall economic growth. Efforts to increase financial inclusion have emphasized financial literacy provided through formal training and education without due recognition that people’s financial behaviors and practices may be motivated by social interactions. The current study examines the moderating effects of social learning on the relationship between financial literacy and formal financial services usage within a developing country context. Survey data collected from a sample of 351 adults in Kampala, Uganda, was analyzed using Pearson correlation coefficients, hierarchical regression, and ModGraph. Findings reveal significant positive relationships between financial literacy, social learning, and usage of formal financial services. Results indicate that social learning moderates the relationship between financial literacy and financial services usage among people in Kampala. The study finds peers and friends to be critical socializing agents with a significant influence on formal financial services usage. Beyond the promotion of financial literacy, financial inclusion initiatives should recognize the effects of social learning to increase the use of formal financial services in countries such as Uganda. The study integrates aspects of the social learning theory into the financial services domain hitherto dominated by finance and economic models. Key words: Financial literacy, financial inclusion, Uganda

PurposeFinancial inclusion is an issue of importance and increasing concern worldwide, particularly to policymakers across Africa and the rest of the developing world. The purpose of this paper is to investigate the level of usage of formal financial services among Ghanaian agricultural households as well as factors influencing these levels.Design/methodology/approachFinancial inclusion indicators associated with the usage of formal financial services are selected from the 2017 Ghana Living Standard Survey. Using these indicators, an index measuring the level of usage of formal financial services is developed. A multinomial logistic regression model is implemented to analyze the possible effect that farm and household characteristics have on index measures.FindingsUsage of formal financial services is very low among agricultural households, with many households using no financial products or services. Household expenditure, education, religion, geographic location, and the use of informal financial services were found to be consistent factors impacting household financial inclusion levels.Practical implicationsFindings may assist policymakers in designing policy schemes aimed at improving access to and usage of financial services for Ghanaian agricultural households. This may lead to a more inclusive financial system with the potential to improve the livelihood of agricultural households and contribute to Ghana's overall economic development.Originality/valueA household-level index measuring usage of formal financial services was developed and characteristics influencing said index measures were examined, providing a more holistic view and understanding of factors influencing usage decisions.

Socio-economic development of rural households is directly linked with the extent of access and usage of financial services, since it equips the households with credit in times of emergency and also useful in upliftment of their status by investing in the productive purposes. Despite possessing bank account by all rural households under study, access and usage of the financial services was found to be very low. The present study was conducted during the year 2019-20 with an attempt to analyse the determinants of usage of banking services and constraints that would be responsible in availing the financial services by rural households in Andhra Pradesh and to suggest measures to improve the financial inclusion. A total of 410 rural households in Andhra Pradesh were selected using multistage sampling procedure. The data on the determinants of usage of banking services were tabulated, coded and analysed through logistic regression using SPSS version 20.0 software and responses collected on constraints of financial inclusion were analysed using Garrett Ranking Technique. Explanatory variables like occupation, education status, income level of the household and land holding were statistically significant and a one unit increase in these variables favours the odds ratio of a household usage of banking services. Among the constraints identified, financial illiteracy emerged as the top most constraint of accessing the financial services followed by the difficulty in getting a loan/emergency credit from the financial institutions. So, to improve the accessibility and usage of formal financial services, there is need to simplify the procedures of financial institutions and also the security norms have to be relaxed for the rural households. Financial literacy has to be increased by conducting periodical training programmes by the concerned banks in the area to strengthen the accessibility to financial services.

Usage of formal financial services in India: Demand barriers or supply constraints?

PurposeMost research studies have examined financial inclusion from a supply-side perspective, which measures access and usage of formal financial services by banking outreach indicators, the number of borrowers and the availability of other financial services in a given area. However, this approach is often insufficient to nuance the degree of financial exclusion faced by segments of the population. This study's overall objective is to empirically examine demand-side determinants of financial inclusion.Design/methodology/approachThis research examines the impact of these variables on the level to which an individual is financially included. Notably, the metric employed goes beyond the basic ownership of a bank account and measures the usage of financial services rather than just access. Quantitative data were collected through self-administered surveys targeting 456 individuals in Egypt in order to test the proposed hypotheses. Three different econometric models were tested using regression analysis.FindingsThe findings imply an insignificant relationship between financial literacy and financial inclusion. Results suggest that financial exclusion is associated with low trust in financial institutions, low-income level, low education level and being elderly, with a more substantial influence on income and education.Originality/valueEgypt suffers from a lack of up-to-date demand-side data and data available at hand allow us to know very little about the factors underpinning financial inclusion. This study is contributing demand-side, up-to-date primary data, that provides multiple insights for Egypt regarding the subject, which helps provide answers and suggestions to policy implications.

The emerging economies need to frame and implement effective financial inclusion policies for sustainable development and growth. Recent initiative of India that every Low Income Households (LIHs) has a bank account is a sweeping success; but the flipside is that half of these accounts are either inactive or less active, which raises concern. In this context, this research attempts to identify the behavioural and psychological factors that influence the usage of formal financial services (FFS) among LIHs in India. Theory of Planned Behaviour is used as the base theoretical model, in which ‘Habit’ was introduced as a moderating variable that interacts with Behavioural Intention to influence Actual Usage. Data was collected from 253 respondents and analysed using SmartPLS 3.0. This study revealed that the exogenous variables Attitude, Subjective Norms, Perceived Behavioural Control positively influenced the intention to use FFS; moreover, Habit negatively moderated the BI-AU relationship. Therefore, the policy makers on financial inclusion drive may consider these identified factors in their mission to improve the usage of FFS among LIHs, and to curtail the informal or alternative financial services.

Promoting financial inclusion for savings groups: A financial education programme in rural Rwanda

Financial inclusion, characterized by access and usage of formal financial services, is a critical driver of economic development and poverty reduction. In Nigeria, a country with a large population of unbanked and underbanked individuals, adoption of Digital Financial Services (DFS) presents a promising avenue for expanding financial inclusion among low- income households. This study focused on evaluating the effectiveness of DFS for promoting financial inclusion among low-income households in Jigawa State, North-West Nigeria. Using a mixed-methods research approach, this study comprehensively assessed the impact of DFS on financial inclusion indicators. The research draws from a representative sample of low- income households in Jigawa State, examining utilization of DFS platforms, perceptions of the benefits and challenges associated with these services. Findings indicate notable increase in financial inclusion among low-income households in Jigawa State following the introduction of DFS. Factors contributing to this positive trend include improved convenience, reduced transaction costs, and increased financial literacy. However, challenges related to digital literacy (complexity) and trust in digital platforms (perceived risk) persist and need to be addressed to maximize the impact of DFS. This research contributes to the ongoing discourse on financial inclusion and digital financial services by providing empirical insights specific to the Jigawa State context. The outcomes of this study are expected to inform policymakers, financial institutions, and DFS providers on strategies for further enhancing the reach and effectiveness of digital financial services in promoting financial inclusion among low-income households not only in Jigawa State but also in similar regions across Nigeria and beyond.

This paper examined gender disparities in financial services utilization in Tanzania benefiting from FinScope surveys database. The FinScope surveys are national surveys representative of individuals aged sixteen years or older conducted after every 5 years. The paper used the data collected in 2009, 2013, 2017 and 2023. The Kruskal-Wallis test was conducted to assess gender differences in the usage of financial services and financial exclusion, and whenever the test indicated significant differences a Dunn’s post-hoc test was performed for significant variables to determine which specific groups (male or female) differed significantly within those parameters. The findings reveal significant gender differences in formal financial services usage, informal financial services usage and complete financial exclusion. The results show that women are left behind by men in usage of formal financial services throughout the period examined, while the rate of women using informal financial services is reported to be higher than that of their men counterparts. It was further found that a greater percentage of women are completely financially excluded as compared to men. These results underscore the need for targeted policies to promote financial inclusion and reduce gender-based financial inequalities in Tanzania. The study proposes policymakers to prioritize targeted interventions to address gender disparities in financial service usage. Initiatives such as gender-responsive financial products, financial literacy programs and streamlined account- opening processes can help bridge the gap. Efforts should also aim to reduce cultural and procedural barriers that disproportionately affect women, ensuring equitable access to financial services.

PurposeThe purpose of this paper is to analyse the impact of female labour force participation (FLFP) in the access and usage of formal financial services by women.Design/methodology/approachThe study uses cross-country data from 107 countries. The study uses multivariate regression (OLS) to explain the impact of FLFP on the financial inclusion variables. The study also accounted for different groups of country-level control variables. Instrumental variables regression is also used in the study to consider for endogeneity issues.FindingsThe results show that FLFP has significant influence on all of the financial inclusion variables used in the study. The role of financial literacy is prominent in determining women's access to sophisticated financial services such as debit card and credit card. Improving financial infrastructure of an economy facilitates greater access to formal account by womenPractical implicationsFrom policymakers’ perspective, women should be motivated to enter labour market for better financial inclusion.Social implicationsMore opportunities for women to enter formal employment encourages female participation in labour market and benefits women and the economy.Originality/valueThis paper is the first of its kind to study the influence of FLFP on indicators of financial inclusion of women. The study extended the scope of access to financial services by considering access to bank account, debit card and credit card. The study also analysed use of financial services through digital platforms by women.

This study examines the demand-side factors of financial inclusion and the gender disparity that persists in remote hilly regions of India, with empirical evidence drawn from 400 respondents in the Uttarkashi district of Uttarakhand. Data were collected using a structured questionnaire and a multistage stratified random sampling approach to ensure representation across diverse demographic groups. Logistic regression analysis was applied to evaluate the influence of key socio-economic determinants on levels of financial inclusion. The findings indicate the presence of significant gender-based differences in financial participation, with women encountering greater barriers to access and usage of formal financial services compared to men. Beyond gender, variables such as age, education, income, employment status, and marital status emerged as important predictors shaping financial inclusion outcomes. Notably, the study underscores the increasing role of digital financial services and transaction modes in altering financial behaviour, even within geographically challenging and underserved regions like Uttarkashi. These results not only enrich the growing body of literature on financial inclusion but also offer practical insights for policymakers, financial institutions, and development agencies striving to create inclusive and gender-sensitive financial ecosystems. The evidence suggests that targeted interventions, enhanced financial literacy, and customized delivery mechanisms are essential for bridging existing gaps. By focusing on a remote and marginalized hilly district, this research contributes a unique perspective to the discourse on inclusive finance and highlights the urgent need for context-specific strategies to promote equitable financial inclusion.

Access to and usage of formal financial services are important determinants of financial inclusion and yet, informal mechanisms still dominate the financial system in developing countries. In this context, the purpose of our paper is to investigate how the growing effort to harness mobile money may play a role to overcome barriers that prevent people to access formal financial services. Using a unique dataset obtained from an individual-level survey conducted in Burkina Faso, we explore the interplay between mobile money innovation as a deposit instrument and pre-existing formal and informal financial instruments. Our main findings show that, overall, the use of mobile money is not associated with deposits using formal and/or informal financial instruments. However, a closer investigation reveals suggestive evidence that it increases the probability of participants in informal mechanisms to make deposits in a bank account. Moreover, considering disadvantaged groups, we find for women, irregular income and less educated individuals that mobile money may increase their probability to make deposits in a bank and/or credit union accounts. Given the low access to formal financial services in developing countries, our findings taken together indicate how the increasing adoption of mobile money may act as a stepping-stone towards financial inclusion.

Financial inclusion, defined as the access and usage of financial services by all individuals and businesses, is critical for fostering economic development and reducing poverty, particularly in developing economies. However, significant portions of the population in these regions remain underserved or excluded from formal financial systems. Leveraging artificial intelligence (AI) and data analytics presents a promising avenue for addressing the challenges of financial exclusion and advancing financial inclusion in developing economies. This Review explores the role of AI and data analytics in enhancing financial inclusion. Firstly, AI technologies such as machine learning and natural language processing enable the analysis of vast datasets to identify patterns, behaviors, and creditworthiness of individuals and small businesses, thereby facilitating more accurate risk assessment and decision-making by financial institutions. Additionally, AI-powered chatbots and virtual assistants offer personalized financial guidance and support, improving accessibility to financial services for marginalized populations who may have limited literacy or access to traditional banking channels. Moreover, data analytics plays a crucial role in expanding financial inclusion by providing insights into customer preferences, spending habits, and transaction histories. By harnessing these insights, financial service providers can tailor their products and services to better meet the diverse needs of underserved communities, thereby increasing uptake and usage of formal financial services. Furthermore, data analytics enables the development of alternative credit scoring models that leverage non-traditional data sources such as mobile phone usage and utility payments, allowing individuals with limited credit histories to access credit on favorable terms. However, several challenges must be addressed to fully realize the potential of AI and data analytics in enhancing financial inclusion. These include concerns related to data privacy and security, ensuring the fairness and transparency of AI algorithms, and bridging the digital divide to ensure equitable access to technology-enabled financial services. In conclusion, leveraging AI and data analytics holds significant promise for enhancing financial inclusion in developing economies. By harnessing the power of these technologies, policymakers, financial institutions, and other stakeholders can work towards building more inclusive and resilient financial systems that empower individuals and businesses to participate more fully in the formal economy.
 Keywords: AI, Data Analytics, Financial Inclusion, Developing Economies, Leveraging.