Financial Inclusion Research Articles

Customer-Centric digital transformation framework: Enhancing service delivery in SMES for underserved populations

This paper introduces a customer-centric digital transformation framework designed to enhance service delivery in Small and Medium Enterprises (SMEs) catering to underserved populations. As digital technology becomes increasingly essential in today’s economy, SMEs face the challenge of integrating these tools effectively to serve marginalized communities. This review explores how a customer-centric approach can enable SMEs to create inclusive digital solutions that meet the specific needs of underserved populations, ultimately driving economic empowerment and social equity. The proposed framework encompasses three core components: accessibility, personalization, and engagement. Accessibility ensures that digital platforms are designed with user-friendly interfaces that accommodate individuals with varying levels of digital literacy. By prioritizing mobile optimization and providing resources in local languages, SMEs can eliminate barriers to entry and facilitate greater participation among underserved customers. Personalization is a key element that allows SMEs to tailor their offerings based on customer insights and preferences. Utilizing data analytics and feedback loops, businesses can gain a deeper understanding of their customers' needs, enabling them to deliver customized products and services that resonate with underserved populations. This tailored approach not only enhances customer satisfaction but also fosters loyalty and trust within these communities. Engagement emphasizes the importance of fostering meaningful relationships between SMEs and underserved populations. By leveraging digital channels such as social media, mobile applications, and community forums, SMEs can create platforms for two-way communication and collaboration. This engagement empowers communities, allowing them to voice their needs and influence the development of products and services. In conclusion, the customer-centric digital transformation framework presented in this paper serves as a strategic guide for SMEs seeking to enhance service delivery for underserved populations. By focusing on accessibility, personalization, and engagement, SMEs can drive economic inclusion, promote social equity, and contribute to sustainable community development. This approach not only benefits the businesses involved but also creates lasting positive impacts within underserved communities.. Keywords: Customer-Centric, Digital Transformation, Smes, Underserved Populations, Accessibility, Personalization, Engagement, Economic Empowerment, Social Equity.

Financial inclusion, ICT development and economic growth in WAEMU countries: evidence of governance

PurposeThe main objective of this paper is to examine how short- and long-term dynamics can be promoted through economic growth policies, financial inclusion initiatives, institutions and ICT infrastructure development. The study focuses on West African Economic and Monetary Union (WAEMU) member countries over for the period 2000–2020 and the empirical evidence is based on the autoregressive distributed lag (ARDL) method. Our empirical results show that the synthetic index variables of financial inclusion, ICT infrastructure development and individual or composite governance institutions indicators are positively and significantly interrelated in both the short and long runs. A dynamic combination of variables is essential for WAEMU countries to achieve long-term economic development. Policy implications are discussed.Design/methodology/approachConsistent with our goal of testing the dynamics of financial inclusion, governance and ICT on economic growth, we will estimate our equations using the ARDL panel method. ARDL models or autoregressive models with staggered or distributed delays are dynamic models. The particularity of these models is that they take into account temporal dynamics (i.e. expectations, adjustment delays and inter alia), so we adopted a lagged autoregressive model (ARDL). The popularity of the ARDL approach also stems from the fact that the cointegration of nonstationary variables is equivalent to an error correction (EC) process.FindingsThe empirical results simultaneously depict strong endogenous associations between these variables in the short and long run. The short-run analysis indicates that economic growth, financial inclusion, institutional quality and ICT infrastructure development are strongly interdependent. These union states, in their economic growth policies, encourage the financial inclusion (access and penetration of bank branches) of disadvantaged communities. However, efficient institutional policies reinforce this sustainable growth. The efficient use of telecommunications infrastructure requires the regulation of informal employment in WAEMU countries for the better deployment of efficient, secure and cost-effective digital financial payment systems (fintech).Research limitations/implicationsThe findings in this study evidently leave space for future research, especially as it concerns considering how composite governance can be employed as a moderating indicator for financial inclusion. In conclusion, there is an interdependence between financial inclusion, ICT, institutions and economic growth. An effective combination of these elements can create an ecosystem conducive to economic development by promoting access to financial services, harnessing the benefits of ICT and building robust institutions. However, challenges can also arise, such as the need for appropriate regulations and security guarantees for electronic transactions.Practical implicationsGovernments should strengthen financial inclusion and promote policies aimed at improving access to financial services, such as microcredits, mobile banking and initiatives for the unbanked. Financial education is crucial for enhancing financial inclusion. Educational programs that teach citizens how to use financial services can increase participation and stimulate economic growth. Moreover, policies should focus on improving digital infrastructure, such as broadband networks and data centers, to facilitate access to the internet and other technologies and to promote innovation and startups. Governments should strive to create a balanced regulatory framework that encourages investment and innovation while avoiding excessive regulation that could hinder growth. Implementing targeted regulatory reforms to improve efficiency and transparency can enhance investor confidence and support a more dynamic economic environment.Originality/valueThis work constitutes a considerable contribution to the literature on finance, institutions and growth in WAEMU countries and in terms of methodology. The findings in this study evidently leave space for future research, especially as it concerns considering how composite governance can be employed as a moderating indicator for financial inclusion. In conclusion, there is an interdependence between financial inclusion, ICT, institutions and economic growth. An effective combination of these elements can create an ecosystem conducive to economic development by promoting access to financial services, harnessing the benefits of ICT and building robust institutions.

The Influence of Sharia Financial Literacy and The Use of Digital Finance On Financial Inclusion with Financial Behavior as an Intervening Variable in Halal Food MSMEs in Palembang City

This research aims to analyze the influence of Sharia Financial Literacy and the Use of Digital Finance on Financial Inclusion with Financial Behavior as an Intervening Variable in Halal Food MSMEs in Palembang City. This research uses a quantitative approach method. The population in this research is Halal Food Business Actors in Palembang City with a sample size of 121 respondents. The data collection technique uses primary in the form of distributing questionnaires using a Likert scale. The data analysis technique in this research uses Outer Model Analysis, Inner Model Analysis, Bootstrapping, Path Coefficient. The results of this research show that: (1) Sharia Financial Literacy has a significant positive effect on Financial Inclusion, (2) Use of Digital Finance does not have a significant positive effect on Financial Inclusion, (3) Sharia Financial Literacy has a significant positive effect on Financial Behavior (4) Use of Finance Digital has a significant positive effect on Financial Inclusion 5) Financial Inclusion has a significant positive effect on Financial Behavior, (6) Financial Behavior is able to mediate Sharia Financial Literacy on Financial Inclusion as shown by the Indirect Effect calculation, (7) Financial Behavior is able to mediate the Use of Digital Finance on Financial Inclusion as shown Indirect Effect calculation.

The nexus between digital financial knowledge and financial inclusion: digital financial attitudes and behaviour as mediators enhancing financial inclusion

Purpose The purpose of this study is to measure financial inclusion (FI) and to examine the role of digital financial literacy (DFL) and its components, and various socio-demographics in relation to FI. In addition, the mediating effect of digital financial attitudes (DFA) on the relationship between digital financial knowledge (DFK) and digital financial behaviour (DFB), as well mediating effect of DFA and DFB on the relationship between DFK and FI, is being explored.Design/methodology/approach Using a cross-sectional research design, we utilize a dataset from the survey of adults’ financial literacy in Bosnia and Herzegovina, collected from the representative sample of 1,096 adults in 2022. The main methodology relies on logistic and ordinal logistic regression analyses and PROCESS for mediation analyses.Findings The findings suggest that the effect of DFK on DFB is partially mediated by DFA. In addition, the effect of DFK on FI is fully mediated through three pathways: DFA, DFB, and DFA and DFB in serial mediation. Age, education, employment status and residence are significantly related to FI. Internet access is significant only for FI scores but not for adults’ banking status. Although women are almost twice as unbanked as men, we find no gender-based differences in financial product holdings, FI or adults’ banking status.Practical implications There is a need to enhance DFK and DFA to enable adults to use financial products. Financial institutions could use our results in designing and promoting their services.Social implications Policy implications are seen in the need for developing national strategies for financial education, with an emphasis on strengthening DFL, especially DFK and DFA, which will enhance the formal FI of adults. Also, governments should work on expanding Internet access.Originality/value The results make a contribution to the theory of planned behaviour. They contribute to the limited empirical evidence of the mediating role of DFA in relationship to DFB, as well as the mediating role of DFA and DFB in relationship to FI.

Financial inclusion, financial stability, and poverty reduction in Africa

AbstractFinancial inclusion universally remains one of the critical means to end poverty in the world, especially Africa, where the level of poverty is high. It has however been argued that financial inclusion equally has the tendency to destabilize the financial system, thwarting the poverty reduction efforts, which necessitates the interrogation of the relationship between the variables. This study therefore investigates how financial stability mediates the financial inclusion and poverty reduction relationship in Africa. Using the panel Autoregressive Distributive Lag model, covering a period of 2004–2020, the study found that financial inclusion is positively related to financial stability in both short and long‐run, with education, Gross National Income per capita (GNI) and domestic credit to private sector, contributing to financial stability, and trade openness negatively related to financial stability in the long‐run. The study further established that financial stability is positively related to household consumption expenditure as such leads to poverty reduction with trade openness, government expenditure, GNI, education, domestic credit to private sector, and institutional quality contributing significantly to poverty reduction. This confirms the mediating role financial stability plays in enhancing the impact of financial inclusion on poverty reduction in Africa and must therefore be given the necessary attention, through proper regulatory mechanisms.

Maximizing the impact of megaprojects: Urgent implications of financial inclusion drive for effective anti-poverty measures

Megaprojects are becoming more and more essential for poverty reduction and inclusive development. Regrettably, the CPEC mega project has yet to yield successful outcomes in Pakistan. The incorporation of financial inclusion (FI) has the potential to catalyze its outcomes. Despite abundant studies on advanced CPEC applications and poverty reduction techniques, the relationship between FI and CPEC has been the subject of relatively little research. Therefore, we analyzed CPECD and FI, specifically emphasizing economic opportunity, growth, and poverty reduction (PR). The study accounted for the viewpoints of small and medium-sized enterprises (SMEs). Using Amos 24 and the Process Macro, we analyze the mediational and moderated mediational models. The findings show that CPECD reduces poverty. Opportunity and growth both significantly influence the outcome. FI practices enhance the opportunity and growth link between CPECD and PR. Therefore, it is imperative to address the issue of FI shrinkage, as it could impede the efforts of SMEs to promote inclusive growth and alleviate poverty.

P2P Lending and Mobile Payments: Disrupting Traditional Banking Systems and Expanding Financial Inclusion

Technological development in the field of finance (FinTech) has sprouted and scaled up rapidly, disrupting the traditional banking system. The rise of new platforms allowing P2P lending and mobile payments has changed the way where and how people receive financial services by replacing professionally-managed financial intermediaries aka banks. This paper explores how P2P lending has enabled decentralised financing by providing flexible loans to borrowers, higher returns to lenders, and alternative credit-scoring methods to assess borrowers credibility. The subsequent development and recent widespread use of mobile payments have brought about transformative changes in finance where users can make payments without using physical cash or relying on banking infrastructure altogether. The combination of these technologies is providing inclusive finance by allowing unbanked and underbanked populations access to necessary financial services. This paper further delves into the challenges emerging from both these innovations, such as assessment of risks, security issues and regulatory uncertainty. The paper concludes by emphasising that new technology-based lending and payments have the potential to foster inclusive economic growth in rural, remote and low-income regions of the world, and by highlighting the challenges that needs to be tackled for FinTech to succeed.

Mitigating Financial Fraud in Indonesia: A Grounded Theory Approach to Fraud Detection in P2P Lending, Rural Banks, and Conventional Banks

The rapid digitalization of Indonesia’s financial sector, driven by the growth of Peer-to-Peer Lending (P2PL) platforms, Rural Credit Banks (BPR), and conventional banks, has expanded financial inclusion but also heightened the risk of fraud. This study investigates the fraud detection systems (FDS) employed by these diverse financial institutions using a grounded theory approach. By conducting semi-structured interviews with key stakeholders—including directors, compliance managers, and fraud control officers—the research identifies critical factors influencing fraud detection in Indonesia’s financial ecosystem. The study reveals that while larger institutions leverage advanced machine learning models and real-time transaction monitoring, smaller entities like BPRs rely heavily on manual oversight due to resource constraints. Furthermore, the integration of multi-subject perception differences is highlighted as a novel and effective approach for fraud detection, particularly in P2PL platforms, by analyzing multiple data sources to reduce bias and increase accuracy. However, the study also uncovers significant challenges in implementing robust FDS, including high false-positive rates, regulatory complexities, and resource limitations, particularly in smaller institutions. The findings emphasize the need for a tailored fraud detection framework that addresses the unique needs of each sector, balancing technological advancements with operational feasibility.

Effects of Table Banking on Socio-Economic Empowerment of Households in Turkana County, Kenya.

Table banking is a concept that has gained popularity in the recent past in Kenya. The aim of this type of informal banking is to enhance the socio-economic status of citizens, particularly those from poor areas of the country. However, measuring and tracking changes in the levels of socio-economic empowerment of households through table banking is not well documented, although it is becoming popular, especially among women groups in Kenya. The main objective of this study was to investigate the effects of table banking on the socio-economic empowerment of households in Turkana County, Kenya. The specific objectives were: to establish the effect of table banking financial accessibility, table banking awareness, table banking group participation, table banking group credit risks management strategies on socio-economic empowerment in Turkana County. The study is guided by the theory of change by Loiseau and Walsh 2015, vulnerable group theory of financial inclusion and public good theory of financial inclusion. The study adopted descriptive survey design where questionnaires were used to get primary data. Secondary data was used to validate the primary data collection. The study involved a sample of 398 members drawn using simple random sampling method from a population of 60,500 Table banking members from Kalobeyei ward, Kakuma ward in Turkana West Subcounty in Turkana County. A total of 398 questionnaires were administered with a return rate of 97.0%. The data collected was analysed using descriptive statistics. The study relied on Pearson’s correlation, linear regression and factor analysis to draw inferences from the responses. Statistical analysis was done with the aid of statistical package of social sciences (SPSS) software version 24. The findings of the study revealed a strong, positive and statistically significant relationship between access to finance and socio-economic empowerment of households. The findings of the study also showed a fairly, strong, positive and statistically significant relationship between table banking awareness on socio-economic of households. Besides, the findings revealed a very strong, positive and statistically significant relationship between Table banking and active group participation on socio-economic empowerment of women. The results of the study also revealed a very strong, positive and statistically significant relationship between table banking credit risk management strategies and socio-economic empowerment of women. According to the findings, this study recommends continuous, operative and thorough training of all groups involved in table banking to enhance their capacity in leading the groups and enhancing financial management capability and performance. Additionally, the study recommends creating a functional system for financial access through the use of several financial products at affordable prices, this focuses on government considering increasing the avenues and mechanisms for socioeconomic empowerment of women and special interest groups, especially in the rural areas. As shown in this study, findings provide evidence of active participating of women in the table banking compared to men involvement, based on this it will also be pivotal to further research the basis of men’s involvement in table banking and how affects their contribution to socio -economic empowerment at the household level.

Present bias and its influence on financial behaviours amongst Indians

PurposePresent bias (PB) is a cognitive bias that stimulates the individual decision-maker to favour the present reward even over the higher reward in the future to avoid the uncertainty attached to the reward in an uncertain future. The article attempts to examine the prevalence of PB amongst Indians and the effect of such bias on savings and borrowings.Design/methodology/approachSecondary data on 47,132 respondents from the Financial Inclusion Insights, 2017 database was used in the study. The theory of self-control, which is captured by the widely accepted hyperbolic discounting model, was used to explore the presence of PB. Suitable statistical techniques and the binary probit regression model were employed to attain the objectives of the study.FindingsThe prevalence of PB was found amongst 8.2% of the sample respondents. The outcome of the study endorses the view of previous researchers that present-biased people tend to save less and borrow more.Originality/valueAlthough the exploration of the role of various cognitive biases on financial behaviour is gaining momentum in recent times, there is a dearth of studies exploring the prevalence of PB and its implication towards financial behaviour, especially in the context of the emerging economy of India. The study makes an original contribution in this regard by using a very rich dataset of 47,132 individuals in the Indian context for the first time.

Impact of Digital Inclusive Finance and Environmental Regulation on Eco‐Efficiency of Farmland Utilization in China

ABSTRACTThe farmland pollution has threatened the lifeblood of people's livelihoods through the soil‐to‐crop system, and the resulting food safety risks are becoming more and more pronounced. Digital inclusive finance (DIF) can provide convenient financial services for the eco‐transformation of farmland utilization. This study analyzed the spatial evolution pattern of eco‐efficiency of farmland utilization (EEFU) and DIF, empirically tested the impact of DIF on EEFU, and discussed the impact of DIF on EEFU with changes in the level of environmental regulatory intensity based on panel data from 2011 to 2022 in China. The results found that the development of EEFU and DIF is increasing, and the polarization phenomenon is constantly easing, but the absolute differences between different provinces in China have an expanding trend. DIF can improve the EEFU, and this promotion effect is more pronounced in eastern and central China, non‐grain‐producing areas, and areas with low levels of financial development. DIF will not be able to improve EEFU until environmental regulation has reached a certain level. China should fully leverage the positive role of DIF and environmental regulations in promoting the EEFU, provide more differentiated financial products, financial tools, and financial models for the eco‐transformation of farmland utilization, and explore a path for eco‐transformation of farmland utilization that complements environmental regulations and development of market‐inclusive finance.

Unlocking innovation and sustainability: lessons from Dubai Expo 2020 for business transformation

Research methodology The data used in the case are collected through both primary and secondary sources. The interview method was used to collect data on the experience of the protagonist on visiting the expo and details about the Expo was collected using secondary sources. Case overview/synopsis The case study examines the success factors of initiatives implemented by the Dubai Expo 2020 team, with a focus on sustainable transportation, energy efficiency, people-centric spaces, biodiversity preservation, water efficiency, waste management, green building and communication. Even though not all objectives were met, the overall progress demonstrates a strong commitment to sustainability and positive effects on environmental, social and economic aspects. In addition, the case study demonstrates how businesses can incorporate social and environmental factors into their decision-making processes, supply chain management and responsible procurement practices. It highlights the significance of sustainability in business operations, stakeholder collaboration and continuous improvement. In addition, the case study provides innovative business models and practices that promote circular economy principles, waste reduction, resource efficiency and inclusivity. This case provides business students with valuable insights into successful sustainability initiatives and strategies for creating a more inclusive and equitable economy. Complexity academic level This case study is appropriate for intermediate undergraduate students in their third year or postgraduate students in their first year, particularly those enrolled in courses on sustainability, operations management, strategic management, supply chain management and corporate social responsibility. The case study is designed to enhance cognitive skills by analyzing and evaluating real-world examples of successful initiatives in sustainability, energy efficiency, people-centric spaces, biodiversity preservation, water efficiency, waste management, green building and open communication. It also aims to develop affective skills by fostering a commitment to sustainable practices and psychomotor skills through practical applications and projects. By analyzing these initiatives, students can comprehend how businesses can integrate social and environmental factors into their decision-making processes, supply chain management and responsible procurement practices to create a more inclusive and equitable economy. In addition, the case study introduces innovative business models and practices that promote circular economy principles, waste reduction and resource efficiency while fostering economic inclusion and equity. Overall, the case study equips students with the knowledge and motivation necessary to drive sustainable change within organizations and contribute to a more sustainable and equitable future.

An Examination of Umar bin Khattab's Policy on Zakat as a Social Security Net in the Context of Post-Covid-19 Pandemic in Indonesia

The COVID-19 pandemic has led to an unprecedented economic crisis, causing millions of people to face job losses, business closures, and financial hardship. To prevent impacts on vulnerable populations, it is essential to have a strong social safety net in the face of these difficulties. The purpose of this study is to examine the potential of zakat, the obligation of Islam to redistribute wealth, as an innovative social safety net, based on the policies of Umar bin Khattab, the second Islamic Caliph. By exploring Umar's visionary approach to zakat distribution and its relevance in contemporary times, this study examines how zakat can be used as an effective mechanism to alleviate the economic consequences of the COVID-19 pandemic for those most affected. This research uses a qualitative research approach By integrating insights from contemporary case studies and stakeholder consultations, this research proposes a comprehensive framework for implementing a robust zakat distribution system that is aligned with the United Nations Sustainable Development Goals (SDGs). This emphasizes the importance of transparent governance, accountability mechanisms, and the involvement of Islamic financial institutions, non-governmental organizations (NGOs), and community-based organizations in the zakat management process. Ultimately, this study offers an interesting case for reviving the spirit of Umar bin Khattab's zakat policy, showing how this ancient Islamic practice can serve as a powerful tool to promote financial inclusion, foster economic resilience, and support sustainable development in the face of modern crises such as the Covid-19 pandemic.

A BRIEF ANALYSIS OF THE BANKING INDUSTRY IN INDIA

This research paper explores the evolution and current dynamics of the Indian banking sector, focusing on the role of digital transformation and the performance of public, private, and foreign banks. Focusing mainly on the decadal data from 2013 to 2023, the study analyzes the growth of bank assets, the Credit-Deposit (C-D) ratio, and the penetration rate of online banking. The findings demonstrate that the banking sector in India has undergone significant changes, with technological advancements driving increased efficiency and customer reach. Public sector banks faced challenges due to non-performing assets (NPAs), while private sector banks showed robust asset growth, recovering quickly from the economic impact of the COVID-19 pandemic. Foreign banks also displayed resilience, with steady growth in assets. The research highlights the critical role of digital banking in modern banking services, contributing to financial inclusion and economic growth. KEY WORDS: public, private, foreign, assets, Credit-Deposit ratio, online banking

The intermediate role of farmland transfer in the impact of digital financial inclusion on agricultural total factor productivity in China

IntroductionEnhancing agricultural productivity and promoting sustainable development in China are critical priorities, given their significant contribution to food security and rural development. However, achieving consistent agricultural productivity growth across regions and sectors has been challenging, leading to inefficiencies and environmental pressures. To address this, the potential of digital inclusive finance (DIF) as a catalyst for progress has been explored.MethodsThis study investigates the impact of DIF on agricultural total factor productivity (ATFP) through farmland transfer, with implications for rural revitalization and high-quality agricultural development. Using the HMB index method, we calculate and decompose China’s inter-provincial ATFP from 2011 to 2020. Employing the dynamic panel fixed effect model and SYS-GMM method, we empirically test the influence of DIF on agricultural productivity in relation to farmland transfer.Results and discussionOur findings reveal a slow upward trend in China’s ATFP, driven primarily by scale efficiency. Notably, a 1% increase in the general index of DIF correlates with a 0.136% increase in ATFP. We analyze the sub-classification indexes of digital inclusive finance, namely coverage breadth, depth of use, and digitalization degree. Their contributions to agricultural productivity growth are significant, with coverage breadth having the greatest impact, followed by depth of use and digitalization degree. Farmland transfer acts as a crucial intermediary, enhancing agricultural allocation efficiency and driving the relationship between digital finance and total factor productivity growth. Interestingly, the western region exhibits the highest growth rates, followed by the eastern region, while the central region shows no significant effects.ConclusionTo comprehensively enhance ATFP, aligning supply and demand for digital financial services, leveraging service depth, and guiding farmland transfer according to local conditions are essential. These findings offer valuable insights into effective strategies for maximizing the potential of DIF, promoting rural development, and achieving sustainable agricultural growth.

Nexus between Financial Inclusion and Poverty: Does the Country's Education matter? Evidence from Lower-Middle-Income Countries

There are special relations between financial inclusion and social inclusion with the latter being one of the best addressed when people have access to financial services. This paper explores effects of financial access on poverty, while incorporating moderation effects by years of schooling. Therefore, this study utilizes unbalanced panel data of 17 lower-middle-income countries itself and both the above mentioned static and dynamic panel model to conduct a strict panel data analyse. The analysis of data, employing the Composite Financial Inclusion Index (CFII) as an instrument to assess financial inclusion, shows that the level of financial inclusion and poverty in these countries are negatively related and sharply influenced. Also, the study discovers that there is a positive correlation between the financial inclusion, and Poverty reduction after controlling the effects of education attainment. They provide useful recommendations for policymakers, institutions dealing with money, and governments. First, financial services must be brought nearer to the poor populations which can reduce poverty level in the society. Second, a subsequent improvement of the education level is required to achieve the best results for financial inclusion on poverty reduction.

Community-Based Participatory Action Research Methodology To Improve Financial Literacy And Financial Inclusion Of Women Entrepreuner

Financial literacy and financial inclusion are indispensable for business actors, especially women entrepreneurs. Financial literacy is financial knowledge related to the ability to manage finances, such as making budgets, interest rate knowledge, investments, savings, and so on. Meanwhile, financial inclusion is the availability of access to financial institutions, financial products and services. Until now, there is still a gap in knowledge and financial inclusion among business actors, especially women entrepreneurs, towards financial technology. If business actors have good financial literacy and financial inclusion, they can take advantage of financial technology services for the sustainability of their business. The target group for this community service is a women's business group that is a member of the Banyumas micro small and small entrepreneurs association (ASPIKMAS) in Cilongok District. There were 30 counseling participants. Counseling is carried out face-to-face. The result of this activity is that women entrepreneurs are more familiar with financial technology services and can choose the right services needed to ensure the sustainability of their business.

Embodiment of Economic Democracy Aspects in National Banking Law

This research discusses the embodiment of aspects of economic democracy in Indonesian national banking law. Economic democracy is defined as a system in which the distribution of wealth and economic opportunity is done fairly and equitably. This research evaluates the extent to which the principles of economic democracy, such as fair access to banking services, financial inclusion, and consumer protection, are implemented in national banking regulations and policies. The method used in this research is qualitative analysis with a normative juridical approach, which involves the study of legal documents and related regulations. The results show that although there are some efforts to integrate the principles of economic democracy in national banking law, there are still gaps in its practical implementation. Recommendations are given to strengthen regulations and policies to be more aligned with the objectives of economic democracy, so that economic benefits can be felt by all levels of society.

Promoting financial inclusion through digitization of remittances

Promoting financial inclusion through digitization of remittances

Microfinance, Financial Inclusion and Economic Welfare in Africa: A Panel Investigation

This study explores the relationship between microfinance, financial inclusion, and economic welfare in a sample of 23 African countries for the period of 2004 to 2023 using annual time series data. We measured microfinance with the number of Branches of Microfinance banks, Microfinance Borrowers, Microfinance outstanding deposits, Microfinance outstanding loans; financial inclusion number of registered mobile money accounts per 1,000 adults; the number of mobile money agent outlets par 1,000 adults; and digital card ownership; governance and institutional quality with Rule of law, regulatory quality, and government effectiveness; and economic welfare with household consumption; while we controlled for the inflation rate, interest rate and exchange rate. These variables were estimated using Panel Least Squares, Fully Modified OLS (FMOLS), Dynamic OLS (DOLS), and Panel Autoregressive Distributed Lag (ARDL) estimation techniques. The result of the cointegration revealed that cointegration exists between the variables of the model. Findings from the aforesaid estimation techniques show that there is the existence of long-run relationships between microfinance, financial inclusion, and economic welfare since the coefficients of the microfinance and financial inclusion variables are statistically significant. The coefficients of the error correction terms which measure the effects of the short-run dynamics of the model suggest that the speeds of adjustment from the long run to the short run in the models would be 76%, 61%, 83%, 67%, 68%, 34%, and 80% respectively for all the specified models. Following the findings of the study, conclusions were drawn and the study suggests that microfinance institutions should adapt to the digitization of their products and services for wider coverage on one hand; the government should provide digital financial amenities to create a fertile ground for micro-financial institutions to rely on to maximize the welfare of the economy.