Formal Financial Services Research Articles

Financial Inclusion and Economic Empowerment

This research investigates the relationship between Financial Inclusion and Economic Empowerment, with a focus on the influence of access to formal financial services on individual economic independence and participation in economic decision making. Through systematic literature analysis, this study explores the concepts of Financial Inclusion and Economic Empowerment, as well as the factors that influence the relationship between the two. The research results show that increasing Financial Inclusion has the potential to increase Economic Empowerment, especially among marginalized groups and women. However, the success of implementing Financial Inclusion is influenced by various institutional, policy, technological, and social and cultural factors. This research highlights the importance of attention to inclusive policy frameworks and collaborative efforts between various stakeholders in achieving the goals of financial inclusion and sustainable economic empowerment.

Exploring the Investment Behaviour of Petty Traders in Sunyani Municipality

Purpose: The primary goals of the study are to assess the level of awareness among small merchants in Sunyani Municipality regarding investment prospects, the sources of investment information, and the impact of demographic characteristics.
 Methodology: Questionnaires were employed in gathering data for the study, which was based on the quantitative research approach. Using Slovin's sample size computation, a sample size of 396 respondents was selected for the investigation.
 Findings: The results revealed that the majority of small traders were aware of prospective investment alternatives such as real estate, government bonds, bank deposits, life insurance, mutual funds, and stocks and shares. It was discovered that the traders had access to two information sources: the formal and informal sectors. The survey discovered that friends and family serve as the key informal sources of information. Regarding the formal sector, it is disclosed that radio and television served as their sources of investment-related information. Also, the degree of awareness regarding investment opportunities was influenced by gender, age, and household size. The findings indicate that among the investment avenues available to traders, gold and other minerals are not well-known by traders.
 Unique contributor to theory, policy and practice: Therefore, it is recommended that programs and talk shows are organized for people to be aware of these avenues. Policymakers should prioritize programs focused on enhancing the financial inclusion of petty traders by improving the accessibility of formal financial services such as savings accounts, credit facilities, and insurance products. The research findings could potentially aid in improving financial inclusion for small-scale traders, informing local government policies that support them, providing valuable market intelligence for businesses targeting this demographic, and contributing to academic knowledge in the fields of economics, finance, and development studies.

Enhancing Gender Inclusion in Financial Autonomy of the Female Stereotype in Sustainable Medium and Small Enterprises in Nigeria

Women entrepreneurs in Nigeria face deeply entrenched gender stereotyping that constrains their financial autonomy and inclusion in the micro, small and medium enterprise (MSME) sector. This paper examines barriers stemming from discriminatory socio-cultural norms and economic institutions that limit women’s access to formal financial services, assets, networks, and critical business support. It also outlines multi-pronged strategies to promote gender equality in MSME development policies and programs. These include: expanding collateral-free lending by financial institutions, strengthening access to productive resources, bolstering entrepreneurial skills training tailored to women, facilitating peer networks and mentoring, deploying ICTs to assist women-run enterprises, enacting legal/regulatory reforms, engaging men as partners, and robust monitoring mechanisms. The analysis found that targeted interventions to ease constraints around credit, asset ownership, biases in training, isolation from growth opportunities, and legal discrimination are vital to dismantle constraints inhibiting women entrepreneurs. Constructive male engagement also assists to transform misconceptions around female dependence and

Digital financial inclusion and domestic tourism demand: Through the lens of spatial spillover

Domestic tourism demand has dominated the global tourism market and has been more resilient during the COVID-19 pandemic; yet, it is under-studied compared to international tourism demand. Digital financial inclusion (DFI) enables the provision of formal financial products and services to small and medium-sized tourism enterprises and tourists through cost-effective digital means, potentially boosting domestic tourism demand. Integrating micro- and macro-level data from 335 prefecture-level regions in China, we investigate the impact of DFI on domestic tourism demand using spatial panel models. Our analysis reveals significant and positive effects, both direct and spillover, of DFI on domestic tourism demand within a region and across regions. Notably, among the three dimensions of DFI, the usage depth exhibits the most substantial spillover effects. Furthermore, our findings also highlight the crucial role of DFI in internalizing domestic tourism revenues. Our study provides practical implications for sustainable domestic tourism development in the digital era.

User acceptance determinants in m-banking adoption

Purpose: This study investigates the factors influencing the adoption of mobile banking (m-banking) in Nepal. It seeks to identify the key determinants of user acceptance in a context where concerns about safety and trust persist.
 Design/Methodology/Approach: Questionnaires were used to gather data from 240 respondents out of a total sample size of 300. Regression, ANOVA, post-hoc analysis and other descriptive and inferential statistics were used to examine the relationships between perceived risk, trust, convenience, relative benefits and m-banking adoption in Nepal.
 Findings: Perceived risk was found to have a significantly negative relationship with m-banking adoption. Relative advantages showed a strong positive relationship with adoption. However, trust had a negligible impact and convenience did not demonstrate statistical significance. Age and education significantly affected user acceptability with users over 50 and those with advanced degrees showing higher acceptance.
 Conclusion: The study suggests focusing on the relative benefits of mobile banking and addressing perceived risk in order to increase users’ confidence. The findings suggest that trust may not be a significant factor and convenience's role remains uncertain. Banks should adapt their strategies to accommodate customers of various ages and educational levels.
 Practical Implications: The findings guide financial institutions and regulators to improve m-banking adoption. Implementing user-friendly, low-risk, low-cost financial services and financial literacy programs can enhance user acceptance. This study applies the technology acceptance model to Nepal and emphasizes the need for a national strategy to promote formal financial services including m-banking. It helps understand technology adoption in emerging economies.

Developments in the Banking Sector and Financial Inclusion in Ethiopia

This paper aimed to highlight developments in the banking sector and to assess the status, trends and determinants of financial inclusion in Ethiopia. The study used data from the World Bank Findex Database, Commercial Bank of Ethiopia, Development Bank of Ethiopia and National Bank of Ethiopia annual reports. The Ethiopian banking sector, once dominated by public banks before the reform, showed a new era following the 1994 reform. The reform paved the way for the licensing of some private commercial banks. As a result, the market share of public banks declined significantly after the reform and vice versa for private banks. The level of financial inclusiveness in Ethiopia is extremely low even though the government has given a policy priority since 2016 onwards. Gender, age, education, financial literacy, residence, income, religion, preferring formal financial services, distance, GDP and trust in financial service providers were found to be the main financial inclusion determinants. Given that financial inclusion has been greatly improved after the financial reform, the government has to unlock the banking sector to foreign investors as it will further enhance the level of financial inclusiveness. Banks should also provide innovative financial products to customers.

SOCIO ECONOMIC CONDITIONS OF WOMEN WORKERS IN UNORGANISED SECTOR: A STUDY OF SALES WOMEN IN TEXTILE SHOPS IN THIRUVANANTHAPURAM CORPORATION

The unorganized sector is a significant and influential component of many economies around the world. Unorganized sector provides income and employment opportunities to the people. A large number of women from weaker sections of the society are attracted to this sector. Despite its importance, the unorganized sector also faces challenges such as lack of legal protections for workers, vulnerability to exploitation, limited access to formal financial services, and barriers to growth and formalization. The socio-economic conditions of women in the textile shops can vary depending on factors such as geographic location, the specific segment of the textile shops, and local regulations. The present study focused on the socio-economic conditions of women in textile shops in Kerala.

Effect of Financial Inclusion on Agricultural Farm Performance in Rwanda: “ A case study of COMSS cooperative.”

Financial inclusion services are an important elements in agricultural farming operations. It makes it possible for producers to cover the cash requirements resulting from the agricultural industry’s unique production cycle, which typically occupies several months and generates very little cash income while necessitating spending money for materials, input purchases, and consumption. Access to financial services is one of several concerns that have an influence on smallholder farmers. Access to adequate, appropriate, and reasonably priced formal financial services for smallholder farmers, however, is a problem that frequently arises in Rwanda. Many rural residents continue to be practically cut off from the financial services required to maintain their survival and enhance agricultural farm performance . The general objective of the research was to find out how financial inclusion affected the performance of the agricultural farms in Muyumbu and Masaka sector . The study was additionally motivated by three specific objectives:to determine the effect of access of microcredit on the performance of the agricultural farm,to examine the effect of access of microsaving on the performance of the agricultural farm,to determine the effect of access of mobile money services on the performance agricultural farm . The target population was the smallholder rice farmers in Muyumbu and Masaka sector.To attain these objectives simple random sampling was employed .The information was given by 186 smallholder rice farmers in Muhazi and Masaka sector.A researcher employed quantitative method for data collection where structured questionnaires instrument was used, descriptive as well as correlative research design were used .Descriptive and inferencial statistics were applied for data analysis. Descriptive statistics employed were frequencies ,standard deviation, and mean. Correlation and multiple regression model were employed for inferencial statistics to show the link among variables ,and SPSS version 20 were also utilized for analysis of data.the findings were presented using tables. The results of this research demonstrated that there is a significant effect and positive contribution of access of microcredit ,microsaving and mobile money services on the performance of the agricultural farm in Rwanda as shown by the coefficient of.609*, which is regarded as a high and positive correlation according to the table’s Pearson correlation .The null hypotheses that financial inclusion has no significant effect on the agricultural farm performance was rejected. The study recommends that MFI should expand financial inclusion through access of microcredit, microsaving and mobile money services which significantly uplift agricultural farm performance. The researcher also suggests that different MFIs and government agencies should provide financial training as well as awareness programs for small-scale farmers on how to access microsavings, microcredit, and mobile money services, MFI should Explore the potential for linking microsavings programs with microcredit opportunities. This can create a holistic approach to financial inclusion, allowing farmers to not only save but also access credit when needed for investments in their agricultural activities.

An Overview of Financial Inclusion in Nepal

This article provides an overview of financial inclusion in Nepal, which refers to the availability of financial services and products to individuals and businesses, particularly those in disadvantaged and low-income regions. The research methodology employed in this study is descriptive research. The documents which were published by the government were analyzed. Nepal Rastra Bank (NRB) and the Ministry of Finance were primary sources of information. These reports contained valuable insights into financial inclusion, economic growth indicators, and program outcomes. Microfinance institutions have been instrumental in advancing financial inclusion in Nepal, offering financial services to low-income people and small enterprises that would not otherwise have access to the official banking system. There is a positive association between financial inclusion and economic growth in Nepal, as access to credit and the use of formal financial services have contributed to short- and long-term economic growth. Similarly, financial inclusion has a positive impact on the economy by increasing the savings rate, broadening credit availability, lowering income inequality, supporting financial stability, and encouraging the expansion of the digital economy. The government of Nepal has implemented various initiatives to encourage financial inclusion, including expanding credit availability, promoting financial stability, and encouraging the growth of the digital economy. Overall, financial inclusion is seen as a crucial component of economic progress and is expected to become even more important as Nepal continues to develop.

Constraints to the promotion of financial inclusion in India: an empirical study of implementing agencies under Pradhan Mantri MUDRA Yojana

PurposeThe study aims to discern the primary obstacles confronted by the implementing agencies in their efforts to foster financial inclusion through the “Pradhan Mantri MUDRA Yojana” (PMMY).Design/methodology/approachTo collect primary data, a semi-structured questionnaire was developed. Around 120 loan officers from the implementing agencies (Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs) and Micro- Finance Institutions (MFIs)) of Haryana were randomly selected to fulfill the objectives. To categorize the perceived problems into discrete factors, the “factor analysis” technique was employed. The scales were then regressed on factors linked to the demographic characteristics of the loan officers to validate the hypotheses.FindingsThe study highlighted the primary obstacles impeding the advancement of financial inclusion, which encompass a range of factors. These include challenges in management, infrastructure, politics, finance and technology. Furthermore, the study established the association of the explanatory variables, namely gender, age, educational qualification, location and experience of the officers, with the extracted constraints. Notably, the experience of loan officers emerged as the most influential variable contributing to the promotion of financial inclusion through the scheme.Originality/valueThe current body of literature lacks any empirical investigation focusing on the perspectives of the implementing agencies regarding the challenges they encounter in advancing FI. Given the significance of FI in India, where access to formal financial services remains a critical issue, this research adds value by addressing the gaps in understanding the problems encountered.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0462

Financial Literacy, Financial Technology, and Financial Satisfaction: Explorasi the Mediation Effect of Financial Inclusion

One crucial factor that affects a person's well-being is their level of financial satisfaction. This study aims to create a research model based on technology, financial literacy, financial inclusion, and financial satisfaction. This research data was obtained from questionnaires distributed to communities in Cilacap and Banyumas, consisting of 110 people. The data obtained were analyzed using SmartPLS Ver 3.2.9 software. The study shows that financial inclusion is driven by financial technology and financial literacy. There is a positive correlation between financial satisfaction and financial inclusion. Financial satisfaction and financial literacy are positively correlated. Nevertheless, there is no relationship between fintech and financial satisfaction. In addition, this study found that financial inclusion could mediate the relationship of financial technology to financial satisfaction. However, financial inclusion cannot mediate financial literacy with financial satisfaction. The results of this research are expected to be helpful for the community and government. The public can increase financial literacy and fintech to optimize financial inclusion. In addition to the community, the government or stakeholders also maximize the availability of access to various quality formal financial services to achieve a 90% financial inclusion index target in 2024 to improve public welfare. The results of this study can be a suggestion for future researchers to find several other factors that affect financial satisfaction.

Impact of Motivational Workshop on Financial Inclusion of Rural People in Bangladesh: Evidence from Randomized Controlled Trial

Despite the expansion of financial institutions and the proliferation of mobile financial services, reaching the unbanked and bringing them under formal financial services has become a policy concern in many developing countries. Due to the lack of financial accounts, unbanked people prefer informal, risky, and inconvenient mechanisms for receiving, sending, and transferring money. Previous studies rely much on common interventions like no account maintenance and opening fees, easy documentation processes, and money subsidies for opening financial accounts. This study aims to examine the impact of the motivational workshop on opening savings accounts through causality among the unbanked people in a setting where the respondents are unbanked despite having all the requirements and many institutional offers to open savings accounts. We encouraged the unbanked people through a one-hour-long motivational workshop to open savings accounts. Based on our cross-sectional data and randomized controlled trial experiment among the 505 unbanked rural people at Dhubil union under Sirajganj in Bangladesh, we have evidence that motivational workshop positively impacts opening accounts by 32.33 percent. However, the account opening rate differs in terms of respondent’s preference for financial institutions. Our study also finds that unbanked people have the highest preference for mobile financial services for opening accounts resulting in 15.33 percent. The result of this study has some policy implications for adopting effective strategies for universal financial access in many developing countries.

The Effect of Financial Inclusion on Poverty in Nigeria

The study investigates the nexus between financial inclusion and poverty in Nigeria, a nation where about 60% of the population lacks access to formal financial products and services. Financial inclusion is viewed as a crucial tool for alleviating poverty, and the research delves into the intricate interplay between these two factors in both urban and rural settings. Employing a linear probability model, the findings reveal that while having an account with a financial institution is positively correlated with poverty reduction, it does not stand alone as a solution for eradicating poverty. In this context, financial literacy plays a pivotal role in empowering individuals to make informed financial decisions, ultimately facilitating their escape from poverty. The promotion of financial literacy initiatives is of paramount importance. Furthermore, the study highlights the role of household size in poverty reduction. Smaller households, typically composed of 1-4 individuals, exhibit a greater potential for poverty reduction, while larger household sizes are associated with an increased likelihood of poverty. This pattern is consistent in both urban and rural areas, underscoring the need for precise interventions and policies that address the distinct challenges faced by rural communities, and concurrently, promote financial inclusion and stimulate economic development. In conclusion, the study underscores the significance of adopting a comprehensive approach to poverty reduction in Nigeria. It underscores the roles of financial inclusion, financial literacy, and customized strategies that consider household sizes and geographic contexts. By addressing these factors, policymakers, financial institutions, and communities can collaborate to develop sustainable solutions that uplift households from poverty and contribute to a more inclusive and prosperous society. Keywords: Poverty; Household Finance; Household Size, Urban; Rural

Financial Funding for Small and Medium-sized Enterprises (SMEs)

The purpose of this paper is to provide a comprehensive understanding of SME funding issues and promote more inclusive and sustainable funding approaches for SMEs. The method used in this paper is qualitative by looking for papers derived from existing journal literature within ten years, looking for findings or results related to variables in this paper. Discuss results and findings from the literature found. The results of this paper after being presented in the form of a conclusion that makes contributions related to the field of finance. SMEs have an important role to play in African economies, but they often struggle to access formal financial services. Informal finance is becoming the preferred choice in some situations. Recommendations include building a regulatory framework, increasing linkages between the formal and informal financial sectors, and leveraging financial technology (FinTech) for financial access. Financial inclusion and risk management of SMEs are also important. This conclusion highlights the role of SMEs and the financial challenges that must be overcome to support economic growth.

Exploring the relationship between financial inclusion and natural resource utilization in QUAD economies.

This study delves into the intricate relationship between financial inclusion (FIC) and economic development (ED) within the context of QUAD nations, including the USA, Australia, India, and Japan. Using panel data spanning from 2000 to 2021, the research investigates this relationship by employing various statistical techniques. Initially, the Jarque-Bera (JB) normality test highlights the non-normal distribution of the data. Furthermore, the findings reveal varying slopes and cross-sectional interdependence among the variables, while the panel unit root test confirms their non-stationarity. Consequently, the adoption of the method of moment quantile regression is deemed appropriate for the analysis. The study's results uncover a negative association between FIC and total natural resource rent (TNRR), while renewable-energy usage (REU), ED, and foreign direct investment (FDI) exhibit a positive relationship with FIC. Notably, the impact of TNRR on FIC diminishes at higher quantiles, indicating a diminishing effect. Similarly, the influence of REU and ED on FIC also decreases at higher quantiles, suggesting a reduced contribution as other sectors gain prominence. Conversely, FDI positively affects FIC, with a more pronounced impact observed at higher quantiles. Policy recommendations for QUAD nations include enhancing FIC initiatives, promoting REU, fostering balanced ED, attracting FDI, and encouraging collaborative efforts among the nations. Furthermore, it is imperative for developing nations to implement widespread financial literacy programs specifically targeting vulnerable and marginalized populations, equipping individuals with essential knowledge to make informed financial decisions and gain access to formal financial services.

Impact of Mobile Banking Platforms Paytm and Google Pay on Financial Inclusion in Rural and Semi-Urban Areas in India

This study aimed to investigate the impact of mobile banking platforms, specifically Paytm and Google Pay, on financial inclusion in rural and semi-urban areas in India. The study was motivated by the fact that there had been limited access to formal financial services in these regions, resulting in financial exclusion and diminished economic development. Utilizing a mixed-methods approach, the study combined surveys of 1,200 households, focus group discussions, and interviews with local financial institutions. Findings revealed significant improvement in financial inclusion. Approximately 72% of surveyed households indicated increased ease in carrying out financial transactions, including savings, remittances, and bill payments, using Paytm and Google Pay. Furthermore, local businesses reported a 35% increase in revenue, attributing it to simplified payment processes. Additionally, a 40% decrease in cash-based transactions was observed, which has implications for reducing fraud and increasing transparency. However, the study also identified challenges such as lack of internet connectivity and digital literacy, which acted as barriers to adoption for 28% of surveyed households. The study concluded that mobile banking platforms like Paytm and Google Pay have had a profound and largely positive impact on financial inclusion in rural and semi-urban areas in India. Despite existing barriers, the adoption of these platforms has facilitated easier and more secure financial transactions, contributing to increased economic activities in these areas. Recommendations include launching government-backed digital literacy programs and public-private partnerships for expanding internet infrastructure. Future studies should also consider evaluating the long-term sustainability of these platforms in fostering financial inclusion and exploring the possibility of integrating additional services like insurance and loans. Keywords: Financial Inclusion, Mobile Banking, Rural and Semi-Urban Areas, Paytm, Google Pay

Financial inclusion, vulnerability coping strategies and multidimensional poverty: Does conceptualisation of financial inclusion matter?

AbstractPolicy emphasis on financial inclusion and deepening has shifted away from measures capturing formal financial services only and towards the development of more inclusive financial markets which account for both formal and informal services. This study examines the effect of financial inclusion and vulnerability coping strategies on multidimensional poverty, where the conceptualisation of financial inclusion is based on four perspectives—(i) one that focuses on only the formal financial sector, (ii) another that concentrates on only the informal financial sector, (iii) one that considers only the mobile money sector and (iv) finally, one that combines all financial markets (i.e., formal and informal including mobile money). Findings show that the conceptualisation of financial inclusion does not only matter in identifying the financially included but also has an implication on how financial inclusion influences multidimensional poverty. Financial inclusion measures that use only formal financial products and services understate their potential effects on multidimensional poverty, thus, justifying the need for a financial inclusion measure that considers both formal and informal sectors. Incorporating informal financial products and services in the measure reduces multidimensional poverty more for female‐headed households and those in rural settings. Households' adoption of vulnerability coping strategies has the potential to reduce the likelihood of being multidimensionally poor.

Smallholder crop farmers’ attributes for formal financial services in Nigeria: An analysis

Financial services to the agricultural sub-sector in Nigeria and particularly to small farmers is difficult because financial institutions have specific requirements that must be met. Many small farmers are hardly serviced and this has affected the growth of the sector. Nevertheless, understanding the nature of the sector and peculiarities of categories of farmers will help build an efficient financial system that is beneficial to farmers and financial institutions alike. This study examined attributes of formal financial institutions smallholder crop farmers prefer for better financial services in Nigeria. Data were elicited from the six agro-ecological zones of the country using the extension officers in Agricultural Development Projects (ADP) of the different states. A total of 399 smallholder crop farmers were sampled and the study used the conjoint technique and multinomial logistic technique in analyzing the data. Results revealed that financial services such as loan, insurance, account opening, credit/debit cards, and funds transfer, were highly rated and preferred by most smallholder crop farmers. However, these farmers were more inclined to loans that were customized (flex loans), insurance claims due within 90 days, savings account opening, cash points for credit/ debit cards within a kilometer of their residence, and funds transferred in 24 hours. Conjoint analysis of the key variables showed that funds transfer within 24 hours was the only significant variable; and the interaction effect (trade-off effect) of this variable with others revealed that, an average smallholder crop farmer would rather prefer loan that is customized, insurance claim within 90 days, and a cash point within a kilometer of his residence to funds that would take longer than 24hrs to arrive. The multinomial result showed that a farmer’s level of education, gender, and farm size were key determinants of an average farmer’s choice of a financial institution. The study, therefore, recommends that, financial institutions should optimize their services in terms of funds transfer and accessibility, and should emphasize only services that are important so as to operate maximally. JEL Classification: Q14, G21, G22, G29, G41. Keywords: Formal financial services, Nigeria, smallholder crop farmers, conjoint analysis, multinomial logistic

Financial Remittance and Growth in Nigeria: Does Financial Development Matter?

This study explores the complex relationship between financial remittances, financial development, and economic growth in Nigeria by investigating whether financial development serves as a mediator in the effect of remittances on Nigeria's economic performance. Thus, this present study focuses on the interactive effect of financial remittances and financial development on economic growth in Nigeria using secondary data for the periods of 1984 to 2022. The results of the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) showed that, individually, remittances do not significantly increase economic growth in Nigeria, but when we considered the moderated effect of financial development, remittances become growth-enhancing in Nigeria. The findings reveal a positive and statistically significant interactive effect of remittances and financial development on economic growth, confirming the role of remittances as a source of external finance that stimulates domestic investment and consumption. Furthermore, the study provides compelling evidence supporting the mediating role of financial development in this relationship. A well-developed financial sector, characterized by depth, efficiency, and access, enhances the positive impact of remittances on economic growth. In light of these findings, the study underscores the importance of policies aimed at fostering financial inclusion, promoting financial literacy, and expanding access to formal financial services. These measures empower remittance recipients to make informed and productive financial decisions, thereby maximizing the developmental benefits of remittances. Keywords: Remittances; Growth; Financial Development; Nigeria; DOLS.

Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation

This research delves into the intricate interconnections among financial inclusion, the adoption of renewable energy, environmental resilience, and poverty reduction in low-income countries (LICs), lower-middle-income countries (LMICs), and sub-Saharan Africa (SSA), in light of complex issues such as poverty, environmental degradation, and sustainable development. This work comprehensively understands the interaction between these crucial factors by utilizing a dynamic panel model, specifically Dynamic Seemingly Unrelated Regression (DSUR), CUP-FM, and CUP-BC. The empirical analysis conducted in our study has produced findings that are both significant and noteworthy. Financial inclusion pertains to facilitating formal financial services for demographic segments that have historically been marginalized or excluded. A negative relationship between financial inclusion and poverty levels in low-income countries (LICs), lower-middle-income countries (LMICs), and sub-Saharan Africa (SSA) has been observed. Moreover, there is an inverse correlation between the utilization of renewable energy sources and poverty, indicating that the utilization of renewable energy sources possesses the potential to catalyze the enhancement of economic conditions and overall welfare. However, it is important to note that the correlation between environmental deterioration and poverty underscores the urgent necessity for implementing comprehensive policies that address sustainability and poverty reduction. The results above shed light on the potential for governmental interventions to promote positive transformations. Improving endeavors to achieve financial inclusion holds the capacity to empower individuals and businesses alike, fostering economic progress and alleviating poverty. Renewable energy technology is progressively acknowledged as a viable strategy to promote economic advancement and tackle environmental issues simultaneously. It is of utmost importance to establish comprehensive policy frameworks that effectively tackle the intricate interplay between environmental degradation and poverty to create a future that is both sustainable and egalitarian.