Credit Card Ownership Research Articles

Women digital financial inclusion and economic growth in Nigeria

PurposeThis article analyses the trend in women digital financial inclusion in Nigeria using some digital financial inclusion indicators obtained from the global Findex database for the year 2014, 2017 and 2021. The study also analyses the relationship between women digital financial inclusion and economic growth.Design/methodology/approachThe data were analysed using the two-stage least squares (2SLS) and generalised method of moments (GMM) regression estimation methods. The women digital financial inclusion indicators are the percentage of women who (1) own a mobile money account, (2) made a digital payment, (3) received digital payments, (4) made or received a digital payment, (5) own a credit card and (6) own a debit card.FindingsThe trend analysis shows a sustained, although small, improvement in women mobile money account ownership during the period, while the other indicators witnessed a decrease in 2017 and an increase in 2021, except for women credit card ownership which remained at the same level during the period examined. There is a significant positive relationship between women digital financial inclusion and economic growth. Internet usage has a significant positive effect on women digital financial inclusion in Nigeria.Practical implicationsGreater digital financial inclusion for women can accelerate economic growth in Nigeria. Policymakers should encourage investment in fintech and broaden access to the Internet to increase women digital financial inclusion and economic growth in Nigeria. Policymakers and practitioners in Nigeria should also work collaboratively to increase digital financial inclusion for women due to its potential to increase economic growth in Nigeria.Originality/valueExisting studies did not analyse the trends in women digital financial inclusion. Existing studies did not empirically analyse the impact of women digital financial inclusion on economic growth in Nigeria. The present study fills this gap in the literature.

Comparative Analysis of Financial Inclusion in Nigeria, Sub-Saharan Africa, and the World

Abstract Using six widely accepted indicators, this study compares the progress made in financial inclusion in Nigeria, Sub-Saharan Africa, and the rest of the World, with a view to deducing lessons that each entity can improve upon. We find that Nigeria outperformed Sub-Saharan Africa in three indicators of financial inclusion while Sub-Saharan Africa did better than Nigeria in one metric. Nigeria and Sub-Saharan Africa exceeded the world average in informal borrowings. We also constructed an index of financial inclusion and found that financial institution account ownership, formal borrowing, informal borrowing, and debit or credit card ownership are significant positive determinants of the financial inclusion index. These findings indicate that policymakers in Nigeria and Sub-Saharan Africa have significant room for improving their financial inclusion standings towards the global average. We make recommendations on the aspects where policymakers can place their focus in pursuit of this goal.

The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation

This study investigates the influence of a country’s financial access and stability and the adoption of retail central bank digital currencies (CBDCs) across 71 countries. Using an ordinal logit model, we examine how individual financial access, the ownership of credit cards, financing accessibility by firms, offshore loans, financial sanctions, and the ownership structure of financial institutions influence the probability of CBDC adoption in nations. These findings reveal that nations facing financial sanctions and those with substantial offshore bank loans are more inclined to adopt CBDCs. Furthermore, a significant relationship is observed in countries where many people have restricted financial access, indicating heightened interest in CBDC adoption. Interestingly, no statistically significant relationship was found between the adoption of CBDCs and the percentage of foreign-owned banks in each country. The results show that countries with low financial stability and financial access adopt CBDCs faster. This study expands our knowledge of how a nation’s financial situation influences its adoption of CBDCs. The results provide important and relevant insights into the current discussion of the direction of global finance.

Financial Inclusion is Rapidly Growing but the Access to Financial Services Remains Modest

Financial inclusion refers to people’s ability to hold a current account with a bank. The degree of financial inclusion is measured by the share of individuals and businesses that use the financial services offered by banks and other financial institutions. Financial inclusion has become extremely relevant among financial sector operators and supervisory authorities as a mean to evaluate both growth and development potential and to guarantee adequate controls to safeguard the stability of the system. Interest in this topic has also been growing because it is included in the UN’s sustainable development goals (the 2030 Agenda for Sustainable Development). This note intends to identify where countries currently stand in relation to the inclusion target, with a focus on Central, South and Eastern European (CESEE) countries, by using the new data from Global Findex, updated by the World Bank in July 2022. The Global Findex is a vital source of data that is only partially used here to evaluate the degree of diffusion of accounts and basic banking services (deposits and credit) in the CESEE sample. Financial inclusion had improved further by 2021. In many countries, it has become very high and is now at the level of major high-income countries. Most of the unbanked are still concentrated in a few Asian countries. Digital payments strengthened in all regions, especially in Asia. However, the gap between ownership and utilisation of credit and debit cards remained large in 2021, suggesting there is a need to further incentivise use. Customers often have an account but still prefer to use cash. Ownership is not utilisation. The UN’s Sustainable Development Goal could realistically be reached by 2030, but now it is necessary to improve financial education and digital literacy to encourage more effective and extensive use of financial accounts. Nevertheless, the ample diffusion of financial inclusion can be reached mainly with a more even income distribution, in all countries and in all the different development models which are spreading in the world.

Investigating the associations of consumer financial knowledge and financial behaviors of credit card use

The growing economic uncertainty makes consumers realize the importance of financial preparedness and management ability. Based on the U.S. National Financial Capability Study dataset from 2009, 2012, 2015, and 2018, this study explores the nexus between consumer financial knowledge and financial behaviors of credit card use. The results indicate that financial knowledge positively affects consumer credit card ownership and desirable financial behaviors of credit card use, and is negatively related to undesirable credit card behaviors. The results are robust to different regression methods and after removing income outliers. The heterogeneity test shows that financial knowledge cannot enhance desirable credit card behaviors because of the income limitations in the low-income group. Therefore, there are implications for policymakers, financial sectors, and consumers to improve consumers' usage of credit cards and cultivate proper consumption habits by enhancing consumer financial knowledge.

PENGARUH PENGETAHUAN, KEPERCAYAAN, DAN GAYA HIDUP TERHADAP MINAT KEPEMILIKAN KARTU KREDIT SYARIAH (Studi Empiris Fakultas Ekonomi dan Bisnis UMJ

The purpose of this study is to analyze the influence of knowledge, belief, and life style on the interest in ownership of Islamic credit cards. The data used in this study are primary data collected from 84 respondents of class employees and alumni of Islamic Economics. The sampling technique used in the study was nonprobability sampling with purposive sampling type, then the data was processed using multiple linear regression analysis. The results of this study indicate that knowledge, belief and lifestyle partially have a positive and significant effect on the interest in ownership of Islamic credit cards.

Space heating preferences in households: Nested logit model approach in Turkey

Turkish economy with its robust growth performance over the last few decades has brought on the agenda the energy deficit problem together with ever-rising foreign account deficits. Since almost 80% of the energy demand is met through imported fossil resources. In this perspective, household fuel choice is crucial, since it makes up a substantial part of total energy demand. Furthermore, traditional fuels are important sources of indoor air pollution and related health hazards. For this reason, in this study the cross-sectional data obtained from the Household Budget Survey conducted by the Turkish Statistical Institute, containing a total of 47,573 households, is used. Multinomial Probit and Nested Logit models are utilized to determine the factors affecting Turkish household heating preferences. According to estimations, dwelling characteristics such as type, age, size and heating system of dwellings are generally found to be an important predictors of fuel choice. Moreover, household characteristics, such as income, education level, spending and saving habits, household size, employment status, marital status, and credit card ownership are generally found to be statistically significant factors. Finally, it is suggested that government support is important for a smooth transition from traditional fuels to modern fuels.

Subsidize or Not: The Competition of Credit Card and Online Credit in Platform-based Supply Chain System

Credit purchasing has seen dramatic growth recently, stimulating online platforms to provide online credit services in competition with the credit card. We build a game-theoretical model to explore the platform's credit entry strategy when facing the credit card competition. Consumers differ in their credit card ownership and disposable personal incomes (DPI), and perceive a hassle cost of the credit purchase. We find that online credit offering brings an increased retail price. When the proportion of credit card ownership is high, the bank and platform subsidize consumers when the credit misfit cost is low, but charge an interest rate otherwise in an integrated system where the platform acts as a seller. However, the platform will never subsidize consumers in independent system where the retailer sells through the platform. The platform will enter the credit market only when the fixed entry cost is sufficiently low in integrated system, but only when the commission fee or misfit cost is large in independent system. When the proportion of credit card ownership is low, the platform will subsidize consumers when consumer dispersion in DPI is large or misfit cost is low. In addition, the platform has a high willingness to choose the entry strategy when the commission fee is large or misfit cost is low in independent case. Discussion and extension verify the robustness of basic model.

ARE CREDIT CARD OWNERSHIP AND USAGE RELATED TO DEMOGRAPHIC, PSYCHOLOGICAL, AND FINANCIAL CHARACTERISTICS?

ABSTRACT Using logistic regression analysis, this study finds that owners of credit cards are likely to use a credit monitoring service, and that ownership of credit card is more likely as age increases. Credit card ownership is not found to be related to education, race, marital status, children living at home, religion, finance confidence, and motivation to learn about money. Using multiple regression analysis, this study also finds that the number of active credit cards is related to knowledge of free credit reports (positive), working in the financial sector (negative), number of children living at home (positive), religion (Protestants, Catholics, Mormons, and Friends having more active cards), and females having more active credit cards than males. Using multiple regression analysis, the study finds that the number of credit cards used regularly is related to race (Hispanics use more than Whites), religion, gender (females use more than males), age (positive), financial confidence (negative), motivation to learn more about finance (positive), control of household finances (negative), last time of credit report review (negative), and financial training (negative). Keywords Credit card ownership and card usage; demographic, financial, and psychological factors; logistic, and multiple regression

The Role of Information and Communications Technology Policies and Infrastructure in Curbing the Spread of the Novel Coronavirus: Cross-country Comparative Study.

BackgroundDespite worldwide efforts, control of COVID-19 transmission and its after effects is lagging. As seen from the cases of SARS-CoV-2 and influenza, worldwide crises associated with infections and their side effects are likely to recur in the future because of extensive international interactions. Consequently, there is an urgent need to identify the factors that can mitigate disease spread. We observed that the transmission speed and severity of consequences of COVID-19 varied substantially across countries, signaling the need for a country-level investigation.ObjectiveWe aimed to investigate how distancing-enabling information and communications technology (ICT) infrastructure and medical ICT infrastructure, and related policies have affected the cumulative number of confirmed cases, fatality rate, and initial speed of transmission across different countries.MethodsWe analyzed the determinants of COVID-19 transmission during the relatively early days of the pandemic by conducting regression analysis based on our data for country-level characteristics, including demographics, culture, ICT infrastructure, policies, economic status, and transmission of COVID-19. To gain further insights, we conducted a subsample analysis for countries with low population density.ResultsOur full sample analysis showed that implied telehealth policy, which refers to the lack of a specific telehealth-related policy but presence of a general eHealth policy, was associated with lower fatality rates when controlled for cultural characteristics (P=.004). In particular, the fatality rate for countries with an implied telehealth policy was lower than that for others by 2.7%. Interestingly, stated telehealth policy, which refers to the existence of a specified telehealth policy, was found to not be associated with lower fatality rates (P=.30). Furthermore, countries with a government-run health website had 36% fewer confirmed cases than those without it, when controlled for cultural characteristics (P=.03). Our analysis further revealed that the interaction between implied telehealth policy and training ICT health was significant (P=.01), suggesting that implied telehealth policy may be more effective when in-service training on ICT is provided to health professionals. In addition, credit card ownership, as an enabler of convenient e-commerce transactions and distancing, showed a negative association with fatality rates in the full sample analysis (P=.04), but not in the subsample analysis (P=.76), highlighting that distancing-enabling ICT is more useful in densely populated countries.ConclusionsOur findings demonstrate important relationships between national traits and COVID-19 infections, suggesting guidelines for policymakers to minimize the negative consequences of pandemics. The findings suggest physicians’ autonomous use of medical ICT and strategic allocation of distancing-enabling ICT infrastructure in countries with high population density to maximize efficiency. This study also encourages further research to investigate the role of health policies in combatting COVID-19 and other pandemics.

Perlindungan Hukum Bagi Pemilik Kartu Elektronik dalam Transaksi E-Commerce

An electronic contract is a contract made by the parties through electronic media, each party when negotiating does not need to have a face-to-face meeting but uses electronic media such as email. Currently, electronic contracts have received legitimacy and protection by Law Number 11 of 2008 concerning Electronic Information and Transactions. This study aims to examine the validity of the same as written contracts on credit card ownership agreements and to reveal legal protection for credit card owners in conducting E-commerce transactions. This research was conducted using normative legal research. The sources of legal materials are primary legal materials, which are sourced from legislation and secondary sources of legal materials are taken from relevant literatures with the issues studied. After the research data has been collected, it is then processed and analyzed in a descriptive qualitative way. The results of the study indicate that the legal protection provided by Article 26 of Law Number 8 of 1999 provides protection for consumers by requiring business actors who trade services to fulfill agreed guarantees and or guarantees. An electronic contract is valid evidence if it is presented as evidence at the court table based on article 5 of Law Number 11 of 2008 concerning Electronic Information and Transactions.

Examining gender inequalities in factors associated with income poverty in Mexican rural households.

According to 2016 official estimates, almost 60% of the rural population in Mexico (16.9 million people) had income levels below the poverty line, and approximately 29.2% (8.3 million) could not even afford the basic food basket. Whereas most poverty research disregards gender and exclusively analyzes average income or the expected probability of being poor, we depart from these approaches by examining the effect of potential risk factors on two of the lowest quantiles of income-to-poverty ratio distribution, namely the corresponding to poor and extremely poor families. Focusing on identifying heterogeneous effects according to the sex of the household head, we apply additive quantile models to a cross-sectional dataset containing information on 4,434 women-headed and 14,877 men-headed households. For each model, we introduce 45 variables at the individual/household, community, and regional levels. Two major contributions emerge from this paper. First, the identification of a subset of significant factors whose effect is independent of the head's sex and is relevant for poor and extremely poor families. This is found for the variables credit card ownership, access to basic housing services, education level, and satisfaction with public services. Second, results also identify a subset of significant factors with an uneven effect on income according to the sex of the head that is observed both in the poor and extremely poor households. Variables having this gendered effect are the community's income inequality, municipal human development, social networks, access to social security, and gender-based violence against women in the public sphere. Out of these, particularly relevant is the effect of the last three factors, whose association with income has not been explored before for rural Mexico and for which the bias among sexes increases as family income grows from extreme poverty to poverty level.

Borrowing for health, sustainability, credit card use and ownership: a study of 74 countries

With the rising cost of healthcare, most households are resorting to out-of-pocket financing or borrowing to finance the high cost of health care. Intuitively, healthcare's rising cost is a global concern and is subject to a thorough economic debate. The Sustainable Development Goals (SDGs) 3 focuses on health care financing for all ages to promote everyone's healthy lifestyle. There are two objectives of this study, and these are as follows: (1) Examine the relationship between borrowing for health or medical purposes and credit card use and ownership, and (2) Explore the significant gender differences concerning borrowing for health or medical purposes. Data for this study was collected from the Global Findex Database and analyzed using the Eviews8 and Microsoft Excel software. The findings from this study confirmed that borrowing for health or medical purposes, primary education, or less (% age 15+) has a statistically significant impact on credit card ownership and usage in high-income countries. There was no relationship of this nature evident in the case of low-income countries. There are significant differences between borrowing for health or medical reasons between males and females in Austria and Lithuania. Both Austria and Lithuania are high-income countries, but in the case of low-income countries, significant gender differences were found for Madagascar and Nepal. This study is timely and has contributed immensely to the existing literature.

English

Trinidad and Tobago is a high-income oil producing Caribbean economy that has been transitioning from the sole reliance on cash for payment, but analysis on the use of electronic payment services remains mostly unanalysed. A slow adoption rate can be a result of voluntary or involuntary financial exclusion if individuals in society choose not to access financial services or are stymied from fully accessing services. The data reveal that despite 81% bank account ownership, there were no deposits or withdrawals made from 19% of the accounts in 2017. Additionally, of the 63% debit card and 19% credit card ownership, card usage only accounted for 14% of GDP; with only 41% indicating the use of a debit or credit card to make a purchase in the past year. As such, this paper examines the use of electronic payments in Trinidad and Tobago and investigates its determinants. The parsimonious Ordinary Least Squares model suggests that financial deepening and increases in the younger proportion of the population are associated with higher use of electronic payments, while the share of the level of employment in the agricultural sector is associated with lower usage.   Key words: Electronic payments, developing economy, Trinidad and Tobago, financial exclusion.

Financial Inclusion and Tax Revenue: Evidence From Europe

This paper aimed to investigate the relationship between financial inclusion and tax revenue using measures from the Global Findex database for a sample of 28 European countries between 2011- 2017. The data were analysed using panel data methodology. The number of people who are financially included in this observed period might increase over time, which would create more income and in turn lead to higher tax contributions to the government. We found strong evidence to suggest that financial inclusion represents one of the determinants of tax revenue in European countries. Results of the analysis show positive and significant impact of financial inclusion as measured by Bank account (% of age +15) and credit card ownership (% age 15+) on tax revenues measures. The results are robust using several sources of taxation. The findings suggest that higher financial inclusion is associated with more tax revenue. These results should be of great interest to regulators and policymakers to take advantage of the developments on financial inclusion.

Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the lack of access for public to formal financial institutions. Moreover, there is an empirical gap of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

Do Gender and Age of bank clients have an impact on Bank Card usage?

This paper attempts to investigate the ownership and usability of debit and credit cards in Kosovo focusing on two demographic variables: the gender and age of the bank's clients. For research purposes, the Central Bank of Kosovo (CBK) data are used for two consecutive years: 2015 and 2016. The comparative method is used to compare the clients’ behavior on the choice of the method to conduct payment and the usage of credit and debit cards in Kosovo banks for two consecutive years 2015 and 2016 based on the gender and age of bank clients. The results show that there is a gender gap, as debit and credit cards are owned and used more by males than females in all age groups and payment types. Whereas, for the variable age, the results show that both debit and credit cards are mostly used by customers aged 25-35 years followed by those 18-25 years. Based on the results of the paper, conclusions were drawn and some suggestions were given. We suggest that banks should do more to enhance the ownership and usage of debit and credit cards by females and elderly clients. Regarding the variable gender, we suggest that banks should offer credit and bonus cards with preferential rates to female entrepreneurs considering the very small number of female entrepreneurs to boost female entrepreneurship and decrease female unemployment in Kosovo.

Factors Associated With Electronic Banking Adoption

Using data from the 2016 Survey of Consumer Finances, this study investigates factors that affect electronic banking adoption rates. Financial knowledge, income, education, and credit card ownership are associated with a high probability of electronic banking adoption. However, age is negatively associated with the probability of online banking adoption and the African American consumer is less likely to adopt electronic banking. This result is more prominent for African American women but does not hold for African American business owners. Financial counselors, planners, and educators should be aware and sensitive to these differences in order to provide additional education as needed on how to effectively use electronic banking services in order to achieve a greater degree of financial inclusion.

Financial Inclusion in Nigeria: Determinants, Challenges and Achievements

This article analyse several indicators of financial inclusion in Nigeria. The findings reveal that people with at least a secondary education and unemployed people had higher levels of debit card ownership, higher levels of account ownership of any type, and higher levels of account ownership in a financial institution. Also, people with at least a secondary education had higher levels of borrowings from a bank or another type of financial institution, and had lower levels of savings at a financial institution. On the other hand, savings using a savings club or persons outside the family decreased among females, poor people and among people with a primary education or less. Furthermore, there were fewer credit card ownership by unemployed people while credit card ownership increased among employed people, the richest people and among people with at least a secondary education. Also, borrowings from family or friends decreased for most categories in 2014 and 2017. Finally, the econometric estimation shows that borrowings and savings outside financial institutions (using family, friends or saving clubs) significantly contributed to economic growth than borrowing and savings through financial institutions. The findings have implications.

MILLENNIALS: THEIR FINANCIAL LITERACY AND DECISION MAKING

Millennials are now the largest population groupings in Indonesia, therefore their decisions in financial matters have significant implications for themselves as well as the country’s economy. This paper is aimed to evaluate the level of financial literacy possessed by the Millennials and their attitudes towards making key financial decisions. Data were collected through questionnaire of 30 questions with 15 questions regarding financial literacy and 15 questions related to financial decision making, with the participants in the study consists of 446 individuals who were born from 1980s to 2000s. The result reveals that better financial literacy leads to better financial decision at 1% significance level. This study also indicates that, although demographic profiles such as gender, education, length of working experience, income, number of credit card ownership and mother education have positive correlation with the level of financial literacy, they do not have moderating effect to the financial literacy and financial decision making of the millennials