Financial Inclusion Initiatives Research Articles

The Impact of Digital Financial Inclusion on Household Commercial Insurance for Sustainable Governance Mechanisms under Regional Group Differences

This study explores the nexus between digital financial inclusion and household participation in commercial insurance, utilizing data from the Peking University Digital Financial Inclusion Index and the 2018 CFPS database. Using Probit and Logit models, our research uncovers significant regional and risk -preference variations, emphasizing the influence of governance mechanisms. The study underscores the pivotal role of digital participation in a sustainable governance mechanism in shaping financial behavior, as well as the importance of advocating for regulatory interventions, enhanced financial literacy, and infrastructure development to foster equitable insurance access. Moreover, positive determinants, such as education level and social insurance participation, are identified, while discretionary spending emerges as a barrier. This study advocates for expedited digital financial inclusion initiatives to increase financial literacy with strengthened regulatory oversight and governance mechanisms which would ensure sustainable regional development and insurance market resilience.

The Effectiveness of Several Public Schemes Sponsored by The Government in Promoting Financial Inclusion Among Underprivileged Women in Rajasthan State

This study examines a few government-sponsored public programmes that the Indian government has put into place with the goal of enhancing financial inclusion and empowerment among the state's impoverished women. These policies include PMJDY, Mudra Yojna, MNREGA, Stand up India KCC, and others. The sources of the literature were Google Scholar, Merald, Science Direct, and Scopus. Reviewing secondary data is also done from SLBC Rajasthan and RBI. According to our analysis, financial inclusion initiatives in Rajasthan have facilitated the opening of bank accounts and loan applications for women. But in order for women to become empowered, they must use these funds to create their own revenue. These programmes support women's socioeconomic advancement in the state as well.

Exploring Small and Medium Enterprises Access to Finance: A Bibliometric Analysis

This study conducts a bibliometric investigation into the access of small and medium enterprises (SMEs) to finance. Access to finance significantly impacts SME success and growth, yet understanding this intricate matter still needs to be completed. Bibliometric analysis aims to uncover significant trends, research gaps, and influential contributors. The methodology involves extensively searching and assessing scholarly articles, journals, and publications related to SMEs' finance access. A systematic approach identifies relevant studies, extracts bibliographic data, and analyzes citation patterns, co-authorship networks, and thematic clusters. This detailed process maps the research landscape's structure, showcasing trends and new research areas. Results of the bibliometric analysis provide vital insights dominant themes like alternative financing methods, government policies, financial inclusion initiatives, and entrepreneurial finance. Influential authors, institutions, and journals contributing to SMEs' finance access knowledge are also identified. This research offers a comprehensive understanding of existing knowledge and addresses critical research gaps. Analyzing scholarly literature provides valuable insights for researchers, policymakers, and practitioners. Identified gaps and emerging areas guide future research, shaping agendas and prompting further investigations. Furthermore, the bibliometric analysis encourages interdisciplinary collaboration and knowledge exchange among scholars and practitioners. Identifying key authors and institutions supports collaborations and knowledge sharing. Ultimately, this research aims to aid evidence-based decision-making and policy formulation for improved SME finance access. By understanding the research's current state, identifying gaps, and noting emerging trends, this study strives to enhance SME growth and development by fostering a better understanding of finance access challenges and possibilities.

Does digital financial inclusion forecast sustainable economic growth? Evidence from an emerging economy

The emergence of digital financial inclusion has initiated a debate about whether it is the next frontier of sustainable economic growth, especially for developing economies. This study aims to verify these contentions by examining the impact of digital financial inclusion on sustainable economic growth. Accordingly, we created automated teller machines and debit card holders (Debit) as the proxies of digital financial inclusion and examined their impact on sustainable economic growth through the proxies of gross domestic product (GDP) growth and carbon dioxide (CO2) emissions. The empirical data between 2011 and 2020 was retrieved from Indonesia and was analyzed using the generalized method of movements (GMM) technique. The findings confirm that digital financial inclusion’s proxies (automated teller machines and Debit) have a significant positive (strong) effect on GDP growth and a significant positive (moderate) effect on CO2 emissions. This study may motivate developing countries to accelerate their digital financial inclusion initiatives to achieve sustainable economic growth.

THE ROLE OF AI IN FINANCIAL MARKET DEVELOPMENT: ENHANCING EFFICIENCY AND ACCESSIBILITY IN EMERGING ECONOMIES

The integration of Artificial Intelligence (AI) within financial markets has become increasingly pivotal, particularly in emerging economies where efficiency and accessibility remain significant challenges. This abstract explores how AI technologies are reshaping financial market development, with a specific focus on enhancing efficiency and accessibility in emerging economies. AI facilitates automation of routine tasks, predictive modeling, and robust risk management, thereby streamlining operations and reducing costs. Moreover, AI-driven solutions democratize financial services, offering personalized advice and expanding financial inclusion initiatives. Despite its transformative potential, challenges such as data privacy concerns, regulatory barriers, and technological infrastructure limitations persist. By examining successful AI implementations and case studies, this review underscores the importance of collaborative efforts between public and private sectors to overcome these challenges. Looking ahead, the abstract emphasizes the need for policymakers to develop conducive regulatory frameworks and encourages stakeholders to embrace AI technologies for sustainable financial market development in emerging economies.
 Keywords:  AI, Financial Market Development, Efficiency, Accessibility, Emerging Economies, Automation.

The effect of financial development and legal institutions on financial inclusion in Sub-Saharan Africa

Purpose of the studyThis study examines the impact of financial development on financial inclusion and the moderating role of legal institutions in enhancing the effect of financial development on financial inclusion in sub-Sahara Africa. The previous literature does not explain how financial development could improve financial inclusion even though the systems theory of financial inclusion argues so. Design/methodology/approachUsing data from WDI for 41 sub-Sahara Africa countries between, 2000–2020, a two-step system GMM and quantile regression models are used to estimate the objectives of the study. The study takes into consideration the exceptional impact of COVID-19 and the importance of internet usage, along with other macroeconomic factors. FindingsThe sys-GMM shows that financial development positively influences financial inclusion. Across diverse measures of financial development and estimation techniques, a consistent and significant positive relationship is observed. Furthermore, the quantile regression approach reveals that at the 25th,50th, and 75th quantile of financial inclusion, the effect of financial development is positive. In both the sys-GMM and quantile regression, the effect of institutions on financial inclusion is positive and also positively moderate the association between financial development and inclusion. Financial is influenced by other key macroeconomic variables. Recommendations/valueThe study recommends that Governments and policymakers prioritize initiatives aimed at advancing financial development in sub-Saharan Africa. Additionally, enhancing the legal and regulatory environment governing financial services, encompassing aspects such as contract enforcement, property rights protection, and corruption reduction, is crucial for sustained financial inclusion. ImplicationsOpen innovation in the financial sector, particularly in mobile payments, can benefit from the positive impact of financial development on inclusion. Also, open innovation in delivery services can benefit from financial inclusion initiatives, ensuring that individuals and businesses across diverse economic strata have access to efficient and affordable financial delivery services.

FINANCIAL INCLUSION THROUGH TECHNOLOGY: A REVIEW OF TRENDS IN EMERGING MARKETS

Financial inclusion, the universal access to affordable financial services, has emerged as a critical component for fostering economic development, especially in emerging markets. This study presents a comprehensive review of trends in financial inclusion through technology, focusing on its transformative impact in emerging markets. In recent years, technological advancements have paved the way for innovative financial solutions, breaking down traditional barriers to access and bridging gaps in financial services. Mobile banking, digital wallets, and blockchain technologies have become instrumental tools in extending financial services to previously underserved populations. This review delves into the key trends shaping the landscape of financial inclusion in emerging markets, highlighting the role of technology as an enabler. The rise of mobile banking has been a game-changer, allowing individuals with limited access to traditional banking infrastructure to conduct financial transactions seamlessly. Digital wallets have gained prominence, offering a secure and convenient means for users to store, transfer, and receive money. Blockchain technology, with its decentralized and transparent nature, has facilitated the development of innovative financial products like cryptocurrencies, providing alternative avenues for financial inclusion. However, challenges persist, including concerns related to data security, regulatory frameworks, and the digital literacy of users. The review critically examines these challenges and explores potential solutions to ensure the sustainable growth of financial inclusion initiatives in emerging markets. Moreover, the COVID-19 pandemic has underscored the importance of resilient and accessible financial systems. The review assesses the pandemic's impact on financial inclusion trends, highlighting both the vulnerabilities exposed and the opportunities for further integration of technology in addressing economic shocks. This review contributes to the evolving discourse on financial inclusion through technology in emerging markets. By identifying trends, challenges, and opportunities, it offers valuable insights for policymakers, financial institutions, and technology innovators seeking to drive inclusive economic growth through technological interventions.
 Keywords: Finance, Technology, Emerging Markets, Financial Inclusion, Review.

Analyzing the Impact of Mobile Banking on Commercial Banks' Financial Performance: A Case of FNB Bank-Zambia

This study sought to analyze the analysis of the impact of mobile banking on commercial banks' financial performance. To this effect a descriptive research design was used on a sample of 101 respondents drawn from FNB Bank Zambia Lusaka Branch. The findings indicate that while there is a growing adoption of mobile banking, its full potential is yet to be realized. Commercial banks need to strategically integrate mobile banking services to optimize their financial performance, leveraging the opportunities presented by this technology. Based the conclusion, the study recommends that Commercial banks in Zambia should prioritize and invest in comprehensive financial literacy programs to educate the population about the advantages and functionalities of mobile banking and that Collaborative efforts with the Zambian government can amplify the impact of mobile banking. Banks should work closely with relevant government agencies to align their strategies with broader financial inclusion initiatives and leverage existing programs to reach underserved populations.

Assessing User Perceptions and Realities in FinTech Application Performance: A Comparative Analysis

Financial services have been fundamentally transformed by FinTech, an innovation in technology that has caused significant shifts in the financial sector. This study delves into the impact of two prominent FinTech platforms, Stripe and Square, on the banking industry. Stripe specializes in online payments, customization, and agility, with a focus on in-person transactions, catering to technologically adept startups. Conversely, Square offers tools tailored for small retail and restaurant enterprises. The study aims to bridge the gap between user perceptions and actual performance, focusing on security and reliability concerns. Despite the convenience offered by FinTech, concerns over security persist, highlighting the need for improved user confidence through robust security standards and transparency. The research explores the historical evolution of FinTech, emphasizing the integration of advanced technologies like AI and blockchain. The research analyzes FinTech performance evaluation methodologies, including key performance indicators (KPIs), to showcase the significance of assessing financial success, customer satisfaction, and user experience. The study outlines the criteria for selecting Stripe and Square, considering industry prominence, market share, a diverse user base, service offerings, innovation, accessibility, and financial inclusion initiatives. The methodology employs a qualitative approach to systematically analyze the performance and user experience of both platforms. Features, pricing, target audience, security, and user experience influence user preferences, according to key findings. The comparative analysis between Stripe and Square indicates a market trend where businesses choose platforms based on operational nature, settlement speed, and specific financial needs. The study underscores the transformative role of FinTech within the financial sector, driven by technological innovation, financial inclusion initiatives, diverse user bases, user-centric design, and robust security measures. The implications suggest a future FinTech landscape characterized by continued emphasis on innovation, inclusivity, user-centric approaches, and security. The research concludes by highlighting the significant impact of Stripe and Square on the financial sector and providing insights for stakeholders to adapt strategies in the dynamic FinTech landscape. Further research opportunities lie in exploring evolving user preferences, emerging technologies, and regulatory developments shaping the future of FinTech.

Assessing the Efficacy of Government Intervention Mechanism on Financial Inclusion Initiatives in the Philippines and Their Implications on Economic Disparities

Assessing the Efficacy of Government Intervention Mechanism on Financial Inclusion Initiatives in the Philippines and Their Implications on Economic Disparities

Impact of Digital Financial Inclusion (DFI) Initiatives on The Self-Help Group: For Sustainable Development

Impact of Digital Financial Inclusion (DFI) Initiatives on The Self-Help Group: For Sustainable Development

Fostering Rural Development through Improved Financial Inclusion in Thoothukudi District: The Involvement of Commercial Banks.

This research delves into the dynamics of economic growth and development in Thoothukudi District, Tamil Nadu, India, with a specific focus on the role of commercial banks in fostering financial inclusion and rural development. The study explores the challenges faced by rural communities in accessing formal banking services and examines the effectiveness of current financial inclusion initiatives. Utilizing a mixed-methods research design, including surveys and factor analysis, the research identifies three dimensions of financial inclusion: Utilization, Approach, and Quality of Services. The findings indicate positive perceptions regarding the convenience and accessibility of banking services, with room for improvement in documentation processes, communication, and the adoption of digital banking. Confirmatory Factor Analysis validates the dimensions, revealing good to very good fits. The study concludes with actionable recommendations for banks to enhance their role in promoting sustainable rural development, emphasizing technological innovation, improved communication, and a customer-centric approach.

Analyzing the alignment of financial inclusion efforts in rural india with the united nations' sustainable development goals: A focus on agricultural population and below-poverty-line households

This research paper delves into the alignment of financial inclusion efforts in rural India with the United Nations' Sustainable Development Goals (SDGs), with a particular focus on the agricultural population and financially weaker households living below the poverty line. The study assesses the impact of financial inclusion initiatives on improving the socio-economic conditions of these marginalized groups, as well as the extent to which India's efforts contribute to achieving the SDGs. An important initiative, in Financial Inclusion is JAM. JAM (short for Jan Dhan-Aadhaar-Mobile) trinity refers to the government of India initiative to link Jan Dhan accounts, mobile numbers and Aadhaar cards of Indians to plug the leakages of government subsidies.

Enhancing Socio-Economic Empowerment through Financial Inclusion Initiatives: A Case Study of Rwanda Union of the Blind

The research defines financial inclusion as the process of making sure vulnerable groups, like low-income individuals and the less privileged, have access to financial services and reasonable credit when they need it, at an affordable cost. This study focused on enhancing financial inclusion and socio-economic empowerment among individuals with disabilities in the Rwanda Union of the Blind. Using a descriptive and correlation research design, the researcher employed two primary data collection methods: questionnaires and interviews with structured questions for the respondents. The study involved 2400 members of the Rwanda Union of the Blind, with a sample size of 96 visually impaired individuals selected using the Yamane formula. Both quantitative and qualitative methods were used for data analysis, with Pearson’s correlation coefficient used to establish relationships between variables. The study's findings highlighted a 43% positive impact of financial inclusion on the socio-economic empowerment of people with visual impairment. Some respondents, particularly those who accessed loans from banks, acknowledged that financial services enabled them to excel in economic activities. Nevertheless, most respondents faced challenges due to discrimination and the absence of collateral, especially among disabled youth, hindering their access to finance. To achieve full financial inclusion, the study recommended that Microfinance Institutions or Banks should ensure equal opportunities and access to credit and financial services for individuals with disabilities. This can be achieved by providing information in formats accessible to them and making service points physically accessible. The government should promote awareness and involvement of visually impaired individuals in incomegenerating activities. Additionally, it was suggested that people with visual impairment should be encouraged to confidently apply for financial services. Keywords: Financial inclusion, Visual impairment, Socioeconomic empowerment, Financial services, People with disabilities.

Bibliometric Analysis on Mobile based Financial Technology and Financial Inclusion

Purpose-The purpose of this study is to review the extant literature on mobile based financial technology and Financial Inclusion (FI) and their interrelationship in management domain. In this study, researchers sought to guide policymakers to advance financial inclusion initiatives. The study explains the research themes and findings in this emerging field. Further, it identifies the limitations and provides directions for further research.
 Design/Methodology/Approach-The analysis was conducted from Scopus and Web of Science database for the period 2010-2023.The author retrieved research articles on Fintech and Financial Inclusion and presented the data using VOS viewer software. At the same time, the study describes the bibliometric analysis as citation analysis, co-citation analysis, mapping of co-cited journals, co-cited authors and co-occurance of all keywords and others.
 Findings-This study reveals the overall nature and direction of future research in the area of mobilebased financial technology and financial inclusion. There are two major themes that emerge out through extant literature as use of mobile phones in context of mobile based technology and Financial Inclusion, summarizing of theories/construct used in previous literature. Mobile-based technology is becoming more important in the recent era. Mobile-based banking is naturally non face to face. It is not restricted only to physical attendance to banks, but the consumers can make a payment from anywhere as he wants. However, there is some gap on which future studies can focus in.
 Practical Implications-The paper explains lessons that could be proven as an important tool for FinTech users, entrepreneurs and bankers and for policy makers and researchers to work upon the issues like barriers or factors affecting in usage of financial services. This paper also helps to practitioners in understanding deeply the role of mobile technology and financial inclusion.
 Originality/Value-The mobile technology and FI study is unique, particularly in the context of emerging economies.

Examining the Financial Inclusion Index to Determine the Financial Inclusion Status in India

Globally, the issue of financial inclusion is crucial, especially in poorer nations where access to financial services is frequently constrained. To increase financial inclusion in India, the government has put some laws and programmes in place, but it is crucial to evaluate their success and pinpoint areas for development. This study focuses on the financial inclusion initiatives and policies that have been put into place in India. The research evaluates the homogeneity/contrast of government actions and the interaction of the banking sector with society. A descriptive analysis method and secondary data from RBI reports and Fi indicators of World Bank were used. The results of this study imply that the government's programme has made some progress towards boosting access to financial services, particularly in rural areas. This study outlines areas for emphasising increased financial inclusion in India. Future actions could include improving underprivileged demographics' access to financial services.

Gender Inequality and Financial Inclusion in South Africa: Lessons from India

This article examines the intersection of gender inequality and financial inclusion in South Africa, focusing on drawing lessons from India’s experience. Despite progress in financial inclusion initiatives in South Africa, women face systemic barriers to accessing financial services, including discriminatory policies and cultural attitudes. Through a comparative analysis of India’s efforts to promote financial inclusion and gender equality, this article identifies key strategies South Africa can adopt to address gender-based disparities in financial access. These strategies include promoting financial literacy among women, expanding access to formal financial institutions, and implementing policies that address the unique challenges women entrepreneurs face. By applying lessons from India, South Africa can take meaningful steps towards building a more inclusive financial system that empowers women and promotes gender equality.

Impact of fintech usages on financial inclusion initiatives: perspective from Urban slum dwellers of Uttarakhand

ABSTRACT This study explores awareness levels, the factors influencing awareness, and the impact of actual usages of fintech services on the acceleration of financial inclusion initiatives among the urban poor of the disadvantaged geographic segment of society. Data have been gathered from a sample of 100 individuals residing in urban slums in Uttarakhand, and analysis has been conducted utilizing the Partial Least Square Structural Equation Modeling (PLS-SEM) technique. The study finds that there is a moderate-to-low level of awareness except awareness of digital methods of payments, which is very high. Income and education are the prominent factors affecting awareness. Lastly, fintech is an effective lever that significantly accelerates the financial inclusion initiatives among urban slum dwellers.

Analysis of Financial Inclusion in India: A Comparative Study of Selected Countries

The importance of financial inclusion in economic and financial discourse has piqued the interest of academics and practitioners alike.  Financial inclusion is viewed as a tool for poverty reduction around the world, and it is now on the agenda of all policymakers in both rich and developing nations. The current study explores the amount of financial inclusion in various nations across the world to highlight the importance of financial inclusion and give insight into the level of financial inclusion globally. Using four metrics from the World Bank Global Findex database 2021, this study assesses the extent of financial inclusion in India, the G20, and SAARC nations. The findings show that India performed better than the global average in terms of account ownership, but it was in the bottom half of G20 nations in terms of account ownership, citizen borrowings, and savings. When compared to the G20 and SAARC countries, India had a very tiny average proportion of borrowings. Government payments in the case of G20 nations were the highest and this statistic was relatively lower in the case of India. A similar pattern was also observed in the case of savings by the citizens. Outcome of the study will go a long way in improving the quality of financial inclusion initiatives so that desirable ground level benefits are realized. Findings of the study will not only provide an assessment of the present situation but also provide vital clues for steering relevant and effective policy measures.

Impact of Digital Financial Inclusion (DFI) Initiatives on the Self-Help Group: For Sustainable Development

Purpose: India has been the advocate the digital infrastructure addressing last-mile connectivity through financial inclusion by integrating innovative financial technology(fintech)and Digital Ecosystem for making financial services more accessible to a large number of people, at present India’s fin tech adoption rate is 87% in the world, Digital ecosystem will account for 30% of global revenues by 2025 as per McKinsey and Digital Financial Services(DFS) is a tool to boost the inclusive growth and access to the finance for solving societal issues and economic growth by adaption of SHG, JLG and Farmer Interest Groups(FIGs) in Farm and Non-Farm Sector and digital model more impact in creating micro-entrepreneurs in non-agriculture sector, employment in Sustainable agriculture, reducing poverty, income equality, equitable society with good health and wellbeing and economic growth with initiatives undertaken by the current government to improve financial inclusion in association with RBI, NABARD, NBFC in Empowering the sustainable development goals and more opportunities for women in rural areas as well as tire 3,tiere4 cities in improving lives with the Financial inclusion initiatives like the National Strategy for Financial Inclusion (NSFI), NABARD E – Shakti, Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, Bharat Interface for Money (BHIM), Electronic Benefits Transfer (EBT)/Direct Benefit transfer, JAM, e-KYC, smart panchayats, agriculture credit, Buy Now Pay Later(BNPL), Digital Banks, Central Bank Digital Currency(DBDC), Robotic Automation with AI, Block chain Technology, Neo banks, Kisan Credit. The innovations and revolution that have had the biggest effect on inclusive digital and financial services include BSB for MSMEs, Rupay, Paytm, PhonePe, Google Pay, and Bharat Interface for Money (BHIM), as well as cloud computing, biometrics, government e-marketplaces, AGMARKNET, and FPOs. RBI FINANCIAL INCLUSION INDEX2022 indicates a gap in FI in India and it impacts GDP, and Atmanirbhar Mahila - Aatmanirbhar Bharat. Design/Methodology: The research relies on secondary data, which were gathered from websites, journals, newspapers, magazines, reports, and Case studies on SHGs promoted by SKDRDP-Shri Kshetra Dharmasthala Rural Development Project. The data are descriptively analysed. Originality/value: Digital Financial Inclusion (DFI) Initiatives on The Self-Help Group: For Sustainable Development and its impact studied through various case studies- how it is helpful to self-help groups. Paper type: Conceptual framework