Financial Inclusion Research Articles

The impact of financial inclusion, Fintech, HDI, and green finance on environmental sustainability in E-7 countries

The impact of financial inclusion, Fintech, HDI, and green finance on environmental sustainability in E-7 countries

Digital financial inclusion and middle-income group vulnerability alleviation: Evidence from China

Economic uncertainty is becoming increasingly apparent, and under the unbalanced “pyramid” internal hierarchical structure of the middle-income group, some middle-income groups are on the brink of decline. This study uses microdata from the Chinese Family Panel Studies (CFPS) from 2012 to 2020 to prospectively predict the vulnerability of the middle-income group and examine whether digital financial inclusion can alleviate the vulnerability of this group. We find that the vulnerability risk of China's middle-income group is prominent and that digital financial inclusion can mitigate vulnerability risk. Moreover, its marginal effect is most evident for those on the edge of the lower bound of the middle-income group, which indicates that digital financial inclusion creates more opportunities for groups at the bottom of the distribution to share the benefits of development. Further research reveals that digital financial inclusion stimulates the vitality of household innovation and entrepreneurship, promotes participation in financial markets, expands operating income channels, enriches sources of property income, and thereby enhances the stability of the household income structure, consolidating the position of the middle-income group in the income distribution pattern. This study provides new ideas for China and other developing countries to explore feasible paths for stabilizing and expanding the middle-income group.

Effects of debt dynamics and financial literacy on consumer market behavior

The consumption upgrading strategy and the dual circulation model position consumption as a critical driver of China's economic growth. Although the development of inclusive finance has somewhat promoted short-term consumption, challenges such as low financial literacy and rising debt burden threaten the sustainability of consumption. This study utilizes data from the 2013–2019 China Household Finance Survey, employing fixed-effect models to examine the impact of household debt on consumption. We also quantify financial literacy's role in moderating debt's influence on consumer behavior.

The asymmetric effects of digital inclusive finance’s breadth and depth on the digital transformation of agribusinesses

Drawing on data from agribusinesses spanning 2000 to 2022, we uncover the non-linear effects of digital inclusive finance breadth and depth on their digital transformation. First, a U-shaped relationship exists between the breadth and depth of digital inclusive finance and the digital transformation of agribusinesses. Second, cash flow moderates the U-shaped relationship between the breadth of digital inclusive finance and digital transformation. This moderation flattens the U-shape, potentially inverting it beyond a certain point. Notably, cash flow does not moderate the relationship between the depth of digital inclusive finance and digital transformation. Third, the U-shaped relationship between the breadth and depth of digital inclusive finance and agribusinesses’ digital transformation is significant only in the eastern and central regions and is observed exclusively before the onset of the COVID-19 pandemic.

Green bond market stability and Russia Ukraine conflict: The role of green inclusive finance

Green bond market stability and Russia Ukraine conflict: The role of green inclusive finance

Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

The role of SAC planning in financial services: Risk management and strategic financial planning

SAP Analytics Cloud (SAC) planning has emerged as a transformative force in modern financial services, fundamentally reshaping how institutions approach risk management, financial forecasting, and regulatory compliance. This technical article explores the evolution of SAC systems, examining their impact on core banking operations, societal implications, and future trajectory. SAC's integration with artificial intelligence and machine learning has enhanced forecasting accuracy, risk assessment capabilities, and ESG monitoring. The platform's implementation has revolutionized financial inclusion initiatives and sustainable finance adoption across emerging markets. The results demonstrate SAC's significant contributions to operational efficiency, regulatory compliance, and customer satisfaction while enabling financial institutions to address emerging challenges in an increasingly complex market environment.

Financial Inclusion, Inequality and Women in Politics and Business

ABSTRACT This present study examines the role of financial inclusion dynamics (depth, access and efficiency) in mitigating the incidence of income inequality on gender inclusion in terms of women in business and women in politics. The following main findings are established. Income inequality reduces gender inclusion while financial inclusion dynamics dampen the negative effect of income inequality on gender inclusion. The corresponding net effects are negative. Considering positive conditional or interactive effects and the negative net effects, financial institution thresholds at which income inequality no longer reduces gender inclusion are provided and discussed. Policy implications are discussed.

Financial Inclusion and the Sustainability of Family Businesses: Impacts on Household Livelihoods

In the context of the empirical literature, the potential of a family business and financial inclusion to drive household livelihood has been a subject of exclusion. Against this backdrop, this study empirically examines how family business and financial inclusion contribute to household livelihood in Saudi Arabia. This study is the first to empirically examine how family business and financial inclusion drive household livelihood using the instrumental variable probit model. The study engaged the probit regression. However, to control for the issues of endogeneity, the study applied the instrumental variable probit regression with data sourced from the World Bank Global Financial Index 2021. Three indicators of financial inclusion were used, which are ownership of a financial account, debit card and online transactions. The results show that family business and financial inclusion are positively and significantly associated with household livelihood. This implies that the ownership of a family business is likely to improve household livelihood by 0.3. On the other hand, an increase in ownership of a financial account, ownership and usage of a debit card and online transactions is associated with the probability of a household being in the fourth and richest 20% income quantile by 0.4.

Trends and Insights in Financial Inclusion and Mobile Money: A Decade of Bibliometric Analysis (2014–2023)

This study conducts a comprehensive bibliometric analysis to explore research trends in financial inclusion and mobile money over the last decade (2014–2023), using data from the Scopus database. Analyzing 439 publications, this study identifies key trends, influential authors, and leading countries in the field. The analysis, supported by tools such as VOS Viewer, reveals dominant themes such as “financial inclusion,” “mobile money,” and “financial system,” with a particular focus on technological advancements and their regional impacts, especially in developing countries. The findings highlight the growing academic interest in mobile money’s role in promoting economic development and poverty alleviation. Moreover, this study underscores the significant geographical disparities in research output, with developed economies producing the most research. Insights from this analysis provide guidance for policymakers and researchers to support future financial inclusion initiatives. The study concludes by recommending further exploration of under-researched regions and the qualitative impact of mobile money on socio-economic outcomes.

The women’s inclusion agenda: Gender and everyday practices across registers of finance

Abstract Financial institutions spanning Global North and South are increasingly adopting an agenda of ‘women’s financial inclusion’. The women’s inclusion agenda in finance reflects dynamics of deep marketization that prescribe common economic policy solutions, transcending formerly significant distinctions of geography and social context. In this case, the closing of gender gaps is the universally proscribed policy. Yet this agenda elicits vastly different practices in ‘high’ finance registers where women are recruited as professionals, and microfinance registers where women are incorporated as borrowers. Relating multisited ethnographic materials from a US gender diversity organization and microfinance institutions in India, we ask: on what terms does inclusion take place? First, we examine how gender is constructed across finance institutions by essentializing women as virtuous. These constructions play out according to context-specific gender politics on questions of women’s economic empowerment – concerning neoliberal iterations of feminism in the US case, and financialization of social reproduction in India. Second, what do women’s everyday engagements with the inclusion agenda indicate about the terms of financial inclusion? Women contend with characterizations of themselves as risk-averse professionals and responsible borrowers, respectively, with ambivalence. Their contextually located ambivalent responses are points of both leverage and critique for the financial inclusion agenda.

The Effect of Financial Literacy, Financial Inclusion and Fintech Payment on The Performance of UMKM in Bandar Lampung City

Research to see financial technology, financial inclusion, and financial literacy in influencing the performance of MSMEs in Bandar Lampung City. The population in this research is MSMEs in Bandar Lampung, the sample size is calculated using the Slovin technique, resulting in 100 MSME respondents. Primary data was collected through questionnaires, and the results of the questionnaire will be tested using SPSS 27 with a multiple linear approach. This study found that financial inclusion, financial literacy, and financial technology can positively influence the performance of MSMEs partially and simultaneously.

The Influence of Digital Financial Literacy, Digital Financial Inclusion, and Financial Technology Mediated by Locus of Control on the Performance of Medan City MSMEs Through Financial Behavior

This study aims to look at the personality of MSMEs in managing a business called locus of control and connecting it to financial behavior that should be done by MSMEs after being affected by the Covid-19 pandemic to improve the performance of MSMEs by utilizing increasingly sophisticated technology as an effort to improve digital financial literacy, digital financial inclusion, and financial technology. This research uses Structural Equation Model (SEM) based on Partial Least Square (PLS) approach. PLS is a structural equation modeling (SEM) based on components or variants. This study used quantitative methods. The method of data collection is done by distributing questionnaires. Source data obtained using primary data. The population in this study is the number of MSMEs registered as assisted by the Medan City Cooperative and SME Office 2020-2023 as many as 1,888 MSMEs, with a sample of 100 respondents processed using the slovin formula. This research was conducted in several districts in Medan, namely Medan Denai, Medan sandpaper, Medan Area, Medan word, Medan City, Medan Petisah, Medan Maimun, and Medan Perjuangan. The results of this study indicate that digital financial inclusion variables directly have a significant effect on the performance of MSMEs. However, the variables of digital financial literacy, financial technology, and financial behavior directly have no significant effect on the performance of MSMEs. Furthermore, digital financial literacy variables indirectly affect financial behavior, while the variables of digital financial inclusion and financial technology indirectly have no significant effect on financial behavior. Then, financial behavior does not mediate between digital financial literacy, digital financial inclusion, and financial technology on MSME performance. Then, locus of control does not moderate digital financial literacy, digital financial inclusion, and financial technology on MSME performance. Keywords: Digital Financial Literacy, Digital Financial Inclusion, Financial Technology, Financial Behavior, Locus of Control

Impact of Digital Inclusive Finance on common prosperity in China’s Social Media Era

Achieving common prosperity (CP) is a pivotal goal in China’s modernization, particularly as social media increasingly shapes public awareness and policy discourse. In China’s social media era, digital inclusive finance (DIF) has emerged as a key financial model impacting this goal. This study, drawing on data from Guangdong Province from 2011 to 2021 as an example, uses the entropy method to calculate the CP index and assesses the impact of DIF on it. Results indicate significant regional variations in CP levels and highlight the positive effects of DIF on it in Guangdong. The theoretical contribution of this study lies in understanding how financial inclusion interacts with social equity. In practical significance, the findings may provide some suggestions and decision-making basis for policy makers, promoting the coverage of DIF and driving sustainable socio-economic development.

An extension of Trust and TAM model with TPB in the adoption of digital payment: An empirical study in Vietnam

Background Digital payment systems are pivotal in the digital economy, relying on the interplay between internet technology and e-vendors. This study seeks to explore acceptance behaviors regarding digital payments by employing an extended version of the Trust and Technology Acceptance Model (TAM) and incorporating the Theory of Planned Behavior (TPB). Methods We conducted a qualitative analysis using interview data from 509 respondents and applied Structural Equation Modeling (SEM) to evaluate the relationships between key variables. The extended model allows for a comprehensive examination of both technological and trust-related factors influencing adoption. Results Our analysis revealed that all standardized path coefficients were positively significant, except for the path from perceived usefulness (PU) to attitude (ATT). The findings confirm that while digital payments are primarily driven by Internet and communication technologies, addressing trust-related issues is essential for enhancing user adoption. The TAM identifies perceived usefulness and perceived ease of use, alongside trust, as critical factors affecting behavioral intention. In the TPB framework, trust significantly impacts digital payment adoption through mediators such as attitude, perceived behavioral control, and subjective norm. Conclusions This study enhances our understanding of the factors influencing digital payment adoption, emphasizing the need to address both technological and trust issues. The insights gained provide valuable recommendations for increasing the use of digital payment systems, particularly in the Northern mountainous regions of Vietnam, thereby fostering greater financial inclusion and economic growth.

The Relationship Between Financial Inclusion and Real Economic Growth: Examples from Turkey, Developing Countries, Developed Countries, and the World

Facilitating the integration of individuals and enterprises into the financial system, financial inclusion promotes wider engagement in economic processes and contributes to economic development. Over the past few years, Turkey has made significant strides in enhancing financial inclusion, largely attributed to advancements in digital technologies. Nevertheless, the precise role of these improvements in driving economic growth remains a topic of ongoing discussion. Key indicators such as bank account ownership, the utilization of mobile payment platforms, and access to credit are commonly used to measure financial inclusion. These indicators influence economic growth through both direct and indirect channels. Increased access to financial services enables businesses to obtain funding more effectively and supports individuals in managing their savings. However, limited financial literacy can act as a barrier, reducing the potential positive effects of financial inclusion on economic growth. An in-depth analysis of Turkey's financial inclusion indicators, utilizing data from the IMF's International Financial Index spanning 2009 to 2022 and assessed through the ARDL methodology, indicates a modest influence of financial inclusion on economic growth. Several challenges, such as inadequate access to financial services for low-income populations and ongoing regional disparities, have limited the capacity of financial inclusion to significantly propel economic advancement. While Turkey's financial inclusion indicators still fall short of those seen in developed countries, the increasing uptake of digital financial services highlights opportunities for future progress. Evidence from other nations underscores that higher levels of financial inclusion can play a transformative role in fostering economic growth. The findings suggest that Turkey has yet to realize the full economic benefits of financial inclusion. Future studies should aim to optimize policies targeting financial inclusion and develop approaches to enhance their effectiveness. Key initiatives may include promoting financial literacy, expanding the reach of digital financial platforms, and addressing regional disparities in access to financial services.

Muhammad Abduh's Thought and Its Practical Implications on Government Work Programs For 2024-2029

This research discusses the relevance of the thought of Muhammad Abduh, a reformist Islamic intellectual, to the policies and work programs of the Indonesian government. Muhammad Abduh is known as a figure who championed the reinterpretation of Sharia principles to respond to the challenges of modernity, focusing on social justice, waqf reform, Islamic financial systems, and education. His thinking provides an important foundation for the development of a modern Islamic economy that is inclusive and equitable. In the context of Indonesian government policy, the 2024-2029 work program that carries the vision of Indonesia Emas 2045 integrates the values of Sharia economics and social justice in line with Muhammad Abduh's ideas. Programs such as strengthening the Sharia economy, optimizing ZISWAF (zakat, infaq, sadaqah and waqf) funds, and alleviating extreme poverty reflect the practical implementation of Muhammad Abduh's ideas. The government also emphasizes economic transformation, halal industry development, increasing Sharia financial inclusion, and Islamic values-based education to strengthen global competitiveness. This study uses a descriptive-analytical method to evaluate the relationship between Muhammad Abduh's thought and public policy in Indonesia. The analysis shows that Muhammad Abduh's ideas are not only relevant in addressing national development challenges, but also provide concrete solutions in creating social justice, community empowerment, and strengthening the Sharia economic system. This research also offers practical recommendations on how Muhammad Abduh's Islamic economic principles can be applied more broadly to support sustainable and inclusive development in Indonesia.

The Role of Zakat in Poverty Alleviation and Farmer Welfare; the Theoretical Review

Zakat is a must to implement which has been proven to be an instrument for equal distribution of income to alleviate poverty and socio-economic disparities in society. This research aims to reveal the latest research regarding the role of zakat in poverty alleviation and prosperity. Then map previous research findings and gaps regarding the role of zakat in poverty alleviation and prosperity; and reveal the role of zakat in the welfare of farmers. This research uses a literature study paradigm. They used secondary data from 71 journals. The scientific journal search technique used the keywords "the role of Zakat in alleviating poverty and welfare of farmers" in the latest publication period between 2014 and 2024. Discussions regarding the role of zakat in alleviating poverty and welfare are generally carried out in Indonesia, Nigeria, Afghanistan, Pakistan, Tanzania, Brunei Darussalam, Bangladesh, and Malaysia. Research intensity (number of journals) in the rice line shows an increase. The results of previous studies agree that zakat has quite important potential as a key instrument in distributing financial resources to be used by zakat recipients to get out of the poverty line. The results of the next analysis are research findings that specifically state that zakat has begun to shift to the agricultural sector. In particular, research regarding zakat for the welfare of farmers began to be carried out in 2016-2024. The focus of the analysis is distribution scenarios, driving factors for zakat payments, models for empowering zakat recipients, implementation barriers, and most recently the focus on implementing agricultural zakat for financial inclusion by strengthening institutions. Several predictors that are widely discussed by researchers and need to be studied further are the role of zakat on poverty and welfare through labor absorption to overcome unemployment and income inequality.

UNIFIED PAYMENT INTERFACE: REVOLUTIONIZING MODERN PAYMENT SYSTEMS

This paper examines the Unified Payment Interface (UPI), a cutting-edge payment system introduced in India by the National Payments Corporation of India. UPI is a mobile-centric, real-time interbank payment platform designed to transform and democratize digital payments in the country. The study delves into the evolution of India's payment systems and provides a comprehensive analysis of UPI's technology, focusing on its architecture and security framework through empirical and theoretical literature. UPI stands out as a major advancement compared to existing payment systems, offering benefits such as reduced costs, user-friendly interfaces, faster settlement times, and robust security measures. With its modular API-based architecture, UPI fosters the creation of innovative solutions for both consumers and businesses. Although still in its early stages, the development of merchant-focused UPI solutions holds the potential to significantly enhance user adoption. By integrating a broader section of the population into the digital economy, UPI could play a pivotal role in advancing financial inclusion in India. KEYWORDS: Mobile payments, Real Time Payments, Unified Payment Interface, Digital payments

Digital Currencies: The Future of Money

This paper explores the transformative impact of digital currencies on the future of money, emphasizing their potential to revolutionize financial systems worldwide. It examines the evolution of digital currencies, including Central Bank Digital Currencies (CBDCs) and digital wallets, and their underpinning technologies such as blockchain and distributed ledger technologies. The study analyzes their implications for financial inclusion and efficiency, showing how they democratize access to financial services. It presents case studies illustrating practical applications in simplifying cross-border payments and everyday transactions, focusing on examples from China, Sweden, and the Bahamas. The research employs a mixed-methods approach, combining historical analysis, and case studies to derive its findings. The conclusion reiterates the pivotal role of digital currencies in shaping the future of money and suggests further research into their implications for global financial stability, including specific areas like regulatory frameworks, international trade impact, and long-term economic implications.