Credit Products Research Articles

The Role of Agricultural Inputs on Crop Productivity: The Case of Zigam Woreda

In spite of the importance of agriculture in Ethiopia, it is characterized by low productivity and has been unable to produce sufficient quantities of output to feed the country’s population. In light of this various development strategies has been undertaken to improve the performance of agriculture. Intensification of agriculture through the use of new agricultural technologies has been emphasized over the last three decades. This study attempted to examine the contribution of agricultural input for crop productivity. The data for the study was collected from 91 sample farmers. This study was the study used both primary and secondary data. In this study researcher was used simple random sampling techniques. This research was use cross sectional approach and econometric method of data analysis to investigate the role of age, sex, land size, labor force, fertilizer, improved seed, extension service, and access to credit, education level and pesticides for crop production by collecting data from the household. In econometric method of data analysis researcher was used ordinary least square (OLS) Model. The econometric result show that land size, labor force, improved seed, fertilizer, credit service, extension service and education level have positive and significant effect on crop production. However, pesticide has a negative and significant impact on crop production. From the explanatory variables, education level has a higher coefficient. This indicates education level is more significant for crop production. According regression result <i>R</i><sup><i>2</i></sup> is 0.97, which implies 97% of output function is explained by the selected ten (10) explanatory variables. The policy implication is that to reduce farmers resistant to use farm inputs and to create knowledge about the optimal input use educate and training of farmers is necessary.

A GLOBAL COMPARISON OF CREDIT BUREAUS BASED ON DATA UTILIZATION IN CREDIT SCORING

The basic concept of credit scoring is to assess an individual`s payment ability as well as the specific individual`s credit default risk, hence determining an individual`s creditworthiness. Based on the credit score, financial institutions, insurance companies, telecommunication companies and other businesses decide whether consumers are eligible for a mortgage, credit card, auto loan, and other credit products. However, in many countries, potential tenants and insurance applicants also use credit scores extensively for screening. Accordingly, Credit Bureaus (CB) or Consumer Reporting Agencies (CRA) exert an essential gatekeeper function for important economic areas of consumers’ everyday life. However, when examining CBs globally, there are considerable differences in the use of data to calculate credit scores. Interestingly, the influence of CBs on credit rating receives little to no attention in academic research. This is particularly evident in the absence of a framework for classifying Credit Bureaus. Therefore, 24 traditional and non-traditional Credit Bureaus operating in 17 different countries are analyzed. First, the study identifies the different data types underlying credit reports and credit scores. Second, CBs are classified and clustered according to the type of information used for credit scoring. Furthermore, promising areas of research, in particular the ethical conflict between data protection and economic participation are highlighted.

AI-Powered customer experience optimization: Enhancing financial inclusion in underserved communities

The integration of Artificial Intelligence (AI) into customer experience optimization holds transformative potential for advancing financial inclusion in underserved communities. This review explores how AI-driven tools can enhance personalized banking services, streamline customer engagement, and improve access to financial products for individuals who are often marginalized by traditional banking systems. By leveraging AI algorithms, financial institutions can analyze vast amounts of customer data to identify unique needs, preferences, and behaviors, enabling the delivery of tailored financial solutions. These AI-powered systems can also automate routine tasks, such as account management and customer support, ensuring that banking services are more accessible, efficient, and cost-effective. A key benefit of AI in this context is its ability to overcome barriers such as geographic isolation and lack of financial literacy, which often hinder financial inclusion. AI-driven chatbots, for instance, can provide 24/7 support in local languages, guiding users through complex financial processes. Moreover, AI enables the creation of personalized financial literacy programs, tailored to the specific needs of underserved populations, fostering a deeper understanding of financial products and encouraging greater participation in the financial system. Additionally, AI-powered fraud detection systems enhance trust and security in financial transactions, a critical factor in encouraging participation from communities traditionally skeptical of formal banking systems. The use of predictive analytics further supports the development of micro-loans and credit products suited to the financial realities of low-income individuals, reducing default rates and improving access to capital. In conclusion, AI-powered customer experience optimization offers a powerful strategy for financial institutions seeking to expand their reach into underserved communities. By providing personalized, efficient, and secure banking experiences, AI can significantly contribute to financial inclusion efforts, driving economic empowerment and reducing inequalities. This study highlights the critical role of AI in reshaping financial services and creating inclusive opportunities for underserved populations. Keywords: Artificial Intelligence, Financial Inclusion, Customer Experience Optimization, Underserved Communities, Personalized Banking, AI-Powered Tools, Financial Literacy, Fraud Detection, Predictive Analytics, Economic Empowerment.

“ESG score” vs. “ESG rating”: a conceptual model for the sustainability assessment and self-assessment of European SMEs

This paper aims to contribute to the ongoing discourse regarding the distinctions and application of scoring and rating systems by presenting a conceptual model designed to assess and self-assess small and medium-sized enterprises (hereinafter also “SMEs”) on their sustainability transition. Indeed, SMEs operate in very different economic contexts and have simplified organizational and governance structures. These characteristics can be effectively captured through this conceptual model based on a customized questionnaire tailored to the specificities of SMEs. Following an analysis of existing literature and regulatory frameworks, a conceptual model is proposed that includes a questionnaire that, unlike commonly proposed industry questionnaires, is designed to generate an Environmental, Social and Governance (hereinafter also “ESG”) Score complemented by a forward-looking perspective. This model can be useful for SMEs, as it allows them to self-assess their strengths and weaknesses in the sustainability transition process, highlighting specific needs and suggesting actions to improve their sustainability transition. It also allows banks to make a more accurate assessment of the sustainability of their customers, facilitating the redefinition of green and social credit products according to the needs of SMEs. Additionally, it also supports supply chain leaders in ensuring a sustainable supply chain by facilitating the sustainability assessment of SMEs. This is so that everything complies with the new European Union (hereinafter also “EU”) regulations. Finally, the questionnaire is currently being tested at a local bank and has been proposed to SME suppliers in a specific supply chain. It will be possible to make changes to the questionnaire based on the feedback received during the administration phase.

Evaluating the Gendered Credit Constraints and Uptake of an Insurance-Linked Credit Product Among Smallholder Farmers in Kenya

Using data from a multi-arm experiment among maize and bean smallholder farmers in Kenya, we evaluate the gender differences in credit rationing, and whether an insurance-bundled credit product, known as risk-contingent credit (RCC) could enhance credit access for both men and women. Using 3 years of household survey data, we find that female-headed households are significantly more risk-rationed (or demand-side rationed) than men. Post-intervention, we find that the impacts of RCC on credit uptake decisions are significantly larger than those of conventional credit. We also find that RCC impacts do not vary across the different gender categories.

Policy on green credit development in Vietnam

Globally, the trend of green credit growth has been developing for a long time through projects focusing on energy saving, renewable energy, and clean technology, aimed at achieving economic growth while protecting the environment. In Vietnam, recognizing the importance of green credit, in March 2015, the State Bank of Vietnam (SBV) issued Directive No. 03/CT-NHNN to promote green credit growth and manage environmental and social risks in credit activities. Additionally, SBV issued the Action Plan of the Banking Industry to implement the National Strategy on Green Growth until 2020, which includes solutions such as: enhancing the capacity of the banking system in implementing green banking and credit; promoting the deployment of green banking and credit products, supporting enterprises in achieving green growth; and increasing awareness and dissemination of green banking and credit activities. Keywords: Green Credit, Policy, Vietnam

Beyond credit cards: A TEP perspective on buy-now-pay-later adoption

ABSTRACT As the utilization of modern fintech credit products, such as Buy-Now-Pay-Later (BNPL), continues to grow, there is a growing need to enhance our understanding of their adoption. This study aims to uncover the determinants of BNPL adoption by identifying factors from technological, economical, and psychological (TEP) perspectives. This research examines consumer adoption of BNPL by drawing upon the Unified Theory of Acceptance and Use of Technology (UTAUT) and Self-Determination Theory (SDT). A cross-sectional research design was utilized in this study, and data from 226 participants were analyzed using Partial Least Square-Structural Equation Modeling (PLS-SEM). Further, the study used importance-performance map analysis (IPMA) to identify the importance and performance of each independent variable against the intention to adopt BNPL. The findings support the hypotheses that technological factors, performance expectancy, and effort expectancy significantly influence the intention to adopt BNPL. Moreover, the economic factor, the flexibility of payment, is positively associated with forming a positive attitude toward BNPL adoption. Further, psychological factors, perceived competence, and perceived relatedness positively influence perceived usefulness, which, in turn, positively affects the intention to adopt BNPL. The study offers valuable strategic insights for BNPL service providers to formulate impactful go-to-market strategies for broadening their customer reach.

Applied regression modeling to propose policy recommendations for green banking development in Vietnam

In Vietnam, green banking plays a critical role in successfully implementing the National Strategy on Green Growth for 2021-2030, vision to 2050. Green banking helps businesses invest in projects, programs and infrastructure to reduce emissions and protect the environment. Therefore, qualitative and quantitative investigations were conducted to identify the critical factors of green banking development. The structural equation model (SEM) analyzes the complex relationships between several factors related to green credit based on a survey of 450 staff members. The research provides lawmakers and bank executives with the scientific basis for new ideas. This study seeks to improve green banking institutions and offer specific solutions to promote banking and credit products and apps to help enterprises expand their green credentials. The findings also support the government and functional agencies in improving project appraisal stages and strengthening hygiene and safety credit inspections in credit policies for green banks. Finally, the results have green credit applications that advise the government to enhance the regulatory framework of green banking under international standards to provide transparency. Simultaneously, improving the practicum framework for green economic sectors and developing conventional green financial markets is necessary to create a foundation for green banking development in the future.

An Economic Analysis of Credit Utilization Pattern and Credit Gap for Grape Cultivation and Value Addition (Raisin Making) in Vijayapura District of Karnataka, India

Credit is an important factor triggering agricultural growth when it is utilized properly. The present study aims to analyze the credit utilization pattern and credit gap for grape cultivation and value addition (raisin making) in Vijayapura district, which is having the highest area under grape cultivation in Karnataka state. As the grape requires high maintenance expenses, its economic analysis is of great importance in its present status. The primary data was collected from 90 respondent grape farmers in the study area. The finding of the study revealed that the sample farmers borrowed an average of ₹ 1,46,883 from all the institutional sources for grape cultivation, and the utilization of borrowed institutional credit for grape production was ₹ 1,09,376 (74.5%), and ₹ 37,507 (25.5%) of borrowed institutional credit was diverted for raisin production. For raisin making the sample farmers borrowed a total of ₹ 1,67,372 in credit from non-institutional sources in the study area. ₹ 138,440 (82.72%) of borrowed non-institutional credit was utilized for raisin making and ₹ 28,932 (17.28%) of borrowed credit was diverted other purposes by the sample farmers. The total credit gap was found to be 58.49, 59.97, and 59.12 per cent from commercial banks, regional rural banks, and cooperative bank/societies respectively. The findings also indicated that the sample farmers used the borrowed institutional and non-institutional credit more effectively to increase their revenue, diverting it less often for other uses. Many farmers do not receive institutional credit in an adequate quantity, at the appropriate time, or at a reasonable cost. Therefore, there is a need to focus on existing access and the quantum of formal credit used for agricultural purposes by different farmers in rural areas of Vijayapura district.

How does green credit affect industrial green transformation? Mechanism discussion and empirical test

Sustainable development has become a strategic consensus in response to the global environmental problems. Green credit is a major policy innovation that promotes the transformation of economic development mode and industrial green transformation (IGT). Using provincial panel data from 2005 to 2020, we investigate the effect of green credit on IGT using a systematic GMM model, a dynamic threshold model, as well as the possible nonlinear relationship. Benchmark regression results show that green credit can encourage industrial green transformation. In addition, there is a single green credit threshold with a value of 0.2612. The trend is “negative to positive”. According to the moderating effect results, environmental regulation moderates in a negative manner. As environmental regulations become more stringent, the contribution of green credit to IGT will diminish. The intermediary mechanism test demonstrates that green technology innovation and marketization level play a partial intermediary role. Heterogeneity testing confirms that the function of green credit in promoting industrial green transformation is more significant in regions with a higher level of green finance development and a lower degree of government intervention. Therefore, the government should encourage financial institutions to provide green credit products and services to meet the financing needs of different green projects, thereby facilitating the industrial green transformation.

A Research Project on: “A Study on Credit Facilities by Private Sector Banks in India”

This study investigates the landscape of credit facilities offered by private sector banks in India, examining the dynamics of lending practices, the impact of regulatory frameworks, and the role of technological advancements in shaping credit accessibility. A comprehensive analysis is conducted on the types of credit products offered, the risk management strategies employed by banks, and the effectiveness of credit evaluation processes. The study also delves into the factors influencing borrowers' choices and satisfaction levels with private sector banks. Methodologically, a combination of qualitative and quantitative research approaches is employed, utilizing surveys, interviews, and financial data analysis. The findings aim to contribute valuable insights to policymakers, financial institutions, and researchers interested in understanding the intricacies of credit facilities in the Indian banking sector. The study holds significance in the context of economic development, financial inclusion, and the overall stability of the banking industry. (Vidani,2015) Credit facilities, private sector banks, lending practices, risk management, regulatory frameworks, technological advancements, financial inclusion, economic development. Remember to replace the generic terms with the specific details of your study. Additionally, for citations, make sure to refer to the relevant academic journals, books, or other authoritative sources that contribute to your study. (Vidani & Solanki,2015)

Implementasi Sistem Informasi Akuntansi Kredit Gadai Emas Di PT Pegadaian

This research was prepared to determine the procedures for granting, repaying, and auctioning gold pawn loans at PT Pegadaian (Persero) Tajur Branch Service Unit as one of the Fast and Secure Credit products offered by the company to the public to be able to obtain loans with collateral in the form of gold. The purpose of this writing is to find out about the Gold Pawn Credit Accounting Information System at PT Pegadaian and how the effectiveness of Internal Control on the Gold Pawn Information System at PT Pegadaian. The procedure for granting a gold pawn starts from a credit application, valuation of collateral, disbursement of credit loan funds, to storage of collateral, followed by settlement of the loan money within a maximum of four months by redemption, installments, or renewal. If the customer is unable to repay later, the collateral will be auctioned with the customer's consent based on the terms and conditions at the beginning of the credit loan process. Based on the results of the review, all of the above procedures have been carried out by the principles of good internal control, including standard procedures that are outlined in the form of flowcharts, there is a separation of duties made in the organizational structure and job descriptions, there are appraisers to overcome the risk of the insufficient value of collateral, there are adequate authorization procedures when granting credit and the auction process, there is verification of credit granting requirements, security of pawn deposits is very adequate, supported by a pawn application system and supporting documents to ensure the achievement of the objectives of granting credit with gold pawning. Keywords: Gold Pawn Credit Procedure, Internal Control, Accounting Information System

Short-term effects of productive credit, savings and money demand on Ecuador’s economic growth, 2006–2020

PurposeThis paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product between 2006 and 2020.Design/methodology/approachThe vector autoregressive technique (VAR) was used, where data from real macroeconomic aggregates published by the Central Bank of Ecuador (BCE) are correlated, such as productive credit, gross domestic product (GDP) per capita, deposits and money demand.FindingsThe results indicate that there is no causal relationship, in the Granger sense, between GDP and financial activity, but there is between the growth rate of real money demand per capita and the growth rate of total real deposits per capita.Originality/valueThe study shows that bank credit mainly finances the operations of current assets and/or liabilities. In addition, economic agents use the banking system mainly to carry out transactional and precautionary activities.

The Unfairness of Personalised Price Terms in Consumer Credit Products

Abstract This article examines whether, and if so to what extent, a lender can engage in the algorithmic personalised pricing of consumer credit products (PP) under the Unfair Contract Terms Directive (UCTD) and the Consumer Credit Directive (CCD). To this end, the author first analyses the economic literature to discuss the mechanics of PP and the economic impacts on different consumer groups. This overview is followed by an examination of the UCTD and the CCD, in the broader context of EU regulatory law, as these Directives apply to the practice and the contractual terms. Subsequently, the author applies the considerations of the European Court of Justice (CJEU) in the jurisprudence regarding price terms in credit and mortgage agreements to personalised price terms. Finally, the author concludes that the Directives indeed limit the extent to which a lender can engage in PP, but that the frameworks in the broader EU regulatory context would be better suited than the Directives to address the negative economic impacts of the practice.

Value Chain and ESG Performance as Determinants of Sustainable Lending in Commercial Bank: A Systematic Literature Review

Currently, the topic of sustainability is increasingly discussed, including in lending activities in commercial banks about environmental, social, and governance (ESG) aspects. The positive influence of economic aspects on sustainability is generally accepted, but the influence of ESG aspects on sustainability still has no consensus. These opinions address ESG-oriented credit products and lending activities. This paper has two aims related to research questions. The first aim is to identify the factors that play a role in sustainable lending in commercial banks through the value chain concept; the second aim is to elucidate the relationship between factors that play a role in sustainable lending. To achieve this goal, a systematic literature review (SLR) of 1,073 articles from various scientific journals was conducted. There are 18 articles relevant to the banking industry related to credit (bank lending) that are selected and become references for knowing the determinant factors in sustainable lending. Based on the systematic review, there are 8 value chain articles, 9 ESG performance articles, and 1 economic performance article related to sustainable lending. A total of 15 articles show the potential and positive influence of sustainability, consisting of 7 value chain articles regarding the potential to encourage sustainability and 8 ESG performance articles regarding a positive relationship with sustainability. The review revealed that a value chain and ESG performance are the two dominant factors in sustainable lending. The review also found the influence of ESG aspects on sustainability; some argue that there is a positive influence or the opposite, and some argue that they do not see the influence. This review has not been able to explain the causal relationship between these two factors and sustainable lending, so further research is also required.

How digital skills affect farmers’ agricultural entrepreneurship? An explanation from factor availability

Promoting rural household agricultural entrepreneurship is a key way to increase farmers’ income and achieve rural revitalization. In the growing digital economy, the ability to use the internet to access information is crucial for agricultural entrepreneurship. Based on the data of China Land Economic Survey, this paper uses the panel Logit fixed-effects model to investigate the impact of digital skills on farmers’ agricultural entrepreneurship and the underlying mechanisms. The findings indicate that digital skills have a statistically significant positive influence on farmers’ agricultural entrepreneurship. Furthermore, digital skills can enhance farmers’ agricultural entrepreneurship by increasing factor availability, including production credit, modern technology, and social capital. The positive effect of digital skills on farmers’ agricultural entrepreneurship is more pronounced for farmer groups with more farming experience, greater land resources, no major adversities experienced and lack optimistic expectations for the future. Additionally, this research revealed differences in the impact of different types of digital skills on farmers’ agricultural and non-agricultural entrepreneurship. This study contributes to the micro analysis from the perspective of farmers’ agricultural entrepreneurship, which provides policy implications for developing countries worldwide to enhance agricultural entrepreneurship by improving digital skills.

Market analysis of coupled biochar and carbon credit production from wildfire fuel reduction projects in the western USA

AbstractThe investment potential for biochar production from low‐value forest biomass in the western USA is over USD 20 billion at current carbon prices. This investment could generate approximately 70 million carbon credits annual – roughly the same number currently generated globally by all forestry and agricultural carbon projects. Biochar production that utilizes woody biomass specifically from wildfire fuel thinning projects as a feedstock can contribute financially to much‐needed fuel thinning projects. Each coupled biochar and carbon credit production system has positive returns in certain scenarios. Light upgrades to existing biopower facilities have the highest returns, with internal rates of return generally between 10–30%. Mobile biochar production often had the lowest returns. However, land managers can subsidize mobile biochar production up to USD 150–300 per tonne of biochar and still save money in comparison with pile‐burning low‐value biomass while also generating approximately one carbon credit for every two bone‐dry tonnes of low‐value biomass turned to biochar. The critical barrier to industry growth is the lack of transparent biomass supply chains that enable long‐term contracting for feedstock, production schedules, and investment. Moving forward, there are three potential pathways for the biochar industry to scale and utilize biomass from forest management and fuel thinning projects. Either (1) the carbon market will need to sustain high carbon prices, (2) a subsidy or other mechanism will need to decrease the cost of feedstock biomass, or (3) production will need to take advantage of economies of scale to bring down biochar prices while increasing production.

Fast growth and slow policy: a decade of digital credit in Kenya

Abstract The proliferation of mobile enabled instant credit products (digital credit) across emerging markets and developing economies poses challenges for policy-makers and practitioners that seek to expand access to credit while protecting consumers. The Kenya market, which experienced tremendous commercial innovation and growth from 2012 to 2022, but also significant consumer harms and unequal competition, offers a valuable reference case for actors in other markets facing rapid expansion of new fintech products and firms. Despite the substantial and often polarized debate around the country’s experience, there has been little systematic effort to capture and interpret key facts from the development of the digital credit market in Kenya during its first decade. This paper aims to fill that gap by providing a policy case study informed by original interviews of key stakeholders and extensive review of related academic and grey literature. The analysis suggests that policy responses were often inadequate to address the growing risks in Kenya’s digital credit market and presents five policy reflections from Kenya’s experience to support consumer protection and competition in emerging digital credit markets.

Factors Limiting Credit Uptake among the Youth in Kenya

Purpose: This study explores the factors limiting credit uptake among Kenyan youth, a demographic comprising about 75% of the country's population yet facing high unemployment and barriers in accessing credit to start businesses.
 Methodology: The study employed a qualitative design using semi-structured interviews with 20 Kenyan youth entrepreneurs (ages 18-35) who sought credit, and four focus groups with 6-8 diverse participants. Purposive sampling recruited participants who pursued credit within the past two years. Thematic analysis identified themes from the inductively coded interview and focus group data. Ethical protocols were followed. Validity and reliability were enhanced through triangulation, member checking, maintaining an audit trail, and strategies to minimize bias.
 Findings: The inadequate funding by easily accessible credit services such as the Hustler Fund is one of the notable impediments hindering the youth from starting small-scale business enterprises. Other barriers include stringent borrower age, business operational lifespan, and employability and minimum wage limit eligibility criteria.
 Unique Contribution to Theory, Practice and Policy: The study recommends government partnerships with private lenders, relaxed eligibility criteria for youth, credit guarantees or collateral support, expansion of low-risk credit products, and initiatives to build youth's banking histories. These recommendations integrate theoretical perspectives on financial literacy, social influences, and individual or systemic factors shaping credit behaviors. The study contributes to practice by proposing context-specific interventions tailored to Kenyan youth. Policy-wise, it aims to empower this valuable economic resource by improving credit access and harnessing their entrepreneurial potential.

Secrets to successful bank and FinTech partnerships for credit and deposits

This paper aims to provide a road map to a successful long-term partnership between traditional financial institutions (FIs) like banks and credit unions with a financial technology (FinTech) platform. This is a summary of lessons learned from developing and launching over 200 bank/credit union partnerships with a FinTech lending platform. Drawing on experience with financial institutions of all shapes and sizes, this paper details best practices to create a scalable way of providing custom solutions to the problems faced by the modern depository institution. This includes a particular focus on lending/ credit products, and how the effect of FI and FinTech lending programmes can add value while mitigating risk. The paper focuses on depositories domiciled in the USA and the American banking system’s regulatory environment, but many of its themes will be applicable to international organisations.