Sustainable Financial Inclusion Research Articles

IMPACTOS DA LEI Nº 14.181/2021 NO TRATAMENTO E PREVENÇÃO DO CONSUMIDOR SUPERENDIVIDADO

Over-indebtedness is a reality that affects many Brazilian consumers, characterized by the inability to pay all debts without compromising the minimum necessary for subsistence. In response to this social issue, Law No. 14,181/2021, known as the "Over-Indebtedness Law," came into effect in July 2021. This research aims to analyze the impacts of this legislation on the treatment and prevention of over-indebtedness, focusing on its legal innovations, protection mechanisms, and preventive and corrective measures. Through a bibliographic and jurisprudential approach, the study reveals that the law promotes greater transparency in credit granting, encourages debt renegotiation, and reinforces the preservation of human dignity. The findings highlight significant contributions to sustainable financial inclusion and a reduction in new cases of over-indebtedness.

Green economy for sustainable financial inclusion among low-income households in achieving vision 2030 and economic growth in Bangladesh

Several studies have explored green economy and the needs for improvement on the standard of living among low-income families or households in many developing countries including Bangladesh. Similarly, there is an emphasis on economic growth and vision 2030 is regarded stressed. Nonetheless, there is less attention in exploring green economy in propelling sustainable financial inclusion among low-income families and households in Bangladesh in order to attain vision 2030 and overall economic growth. The primary objective is to explore green economy in fostering sustainable financial inclusion among low-income families and households in Bangladesh in enhancing economic growth and vision 2030 in Bangladesh. Content Analysis (CA) and systematic literature review (SLR) as an integral part of qualitative research. Secondary data were gathered through different sources such as: Web of Science (WOS), related journals, published references, research papers, library sources and reports. The results indicated that poverty is a prime challenge impeding sustainable financial inclusion among low-income families and households in Bangladesh. The study has further established the potential of green economy in improving well-beings and social fairness in fostering sustainable and inclusive finance among families or households with low-income in the country. The paper also highlighted the necessity of implementing policy relating to vision 2030 by enhancing sustainable and inclusive finance among low-income households in particular and overall economic growth in the country in general. In conclusion, it has been reiterated that green economy has been a mechanism for achieving sustainable development in general and poverty eradication among low-income households in Bangladesh. It is therefore suggested that the government and economic policymakers should provide enabling environment for improving green economy among low-income households in achieving Vision 2030 and overall economic growth in the country.

The Nexus of Crowdfunding and e-Wakaf to Islamic Fintech in Indonesia in the Era of Industrial Revolution 5.0

This study analyses the contribution of digitalisation in Islamic finance through the application of Islamic crowdfunding and e-wakaf instruments in supporting the development of Islamic fintech in Indonesia, especially in the era of the Industrial Revolution 5.0. Digitalisation in the Islamic finance sector plays a strategic role in expanding access to financial inclusion and facilitating more effective community involvement in sharia-based economic activities. Using the Robust Least Squares (RLS) method, this study utilises secondary data for the period 2018 to 2023 to evaluate the impact of Islamic crowdfunding and e-wakaf on the growth of Islamic fintech. The results show that Islamic crowdfunding significantly expands access to alternative funding, especially for small and medium enterprises (SMEs), while e-wakaf improves transparency and efficiency of waqf asset management through digital technology. These two instruments simultaneously contribute positively to the strengthening of the Islamic fintech ecosystem in Indonesia, creating a strong foundation for broader and sustainable financial inclusion. The findings provide important perspectives for the development of innovative policies and strategies in advancing the Islamic financial sector in the digital era.

The Effect of Islamic Financial Socialization and Education on Public Interest in Using Islamic Banking Services

This study aims to analyze the influence of Islamic finance socialization and education on public interest in using Islamic banking services. Involving 66 respondents in two major cities in Indonesia, this study uses a survey method with questionnaires to collect data that measures respondents' perception and understanding of Islamic finance principles, such as profit-sharing and the prohibition of usury. Data analysis using SPSS shows that socialization and education of Islamic finance have a significant positive influence on the increase in public interest in using Islamic banking services, where more than 65% of respondents reported an increase in interest after participating in the socialization and education program. These findings indicate that effective education strategies are very important in communicating Islamic finance concepts in order to build public understanding and trust. The implication of this study is the need for Islamic banks and financial institutions to continue to strengthen Islamic financial socialization and education programs to expand public access to sharia-based financial services. This step not only supports the growth of the Islamic banking sector, but also strengthens sustainable financial inclusion in Indonesia.

Waqf and Microfinance Integration for Enabling Sustainable Financial Inclusion: Analysis of Sharīʿah Compliance

Purpose — Sustainability has remained one of the most significant challenges facing the microfinance industry, and Islamic microfinance is no exception. The need for Sharīʿah compliance poses an additional challenge for the Islamic microfinance industry. Many practitioners have argued that, in practice, social missions should be sacrificed for profitability so that microfinance institutions (MFIs) could achieve sustainability and competitiveness in the finance market. This paper investigates the potential of integrating waqf and microfinance to allay the challenge of balancing social responsibility (outreach) and financial sustainability within Islamic MFIs. Additionally, it analyses the Sharīʿah compliance requirements underpinning this integration. Design/Methodology/Approach — This study adopts a qualitative method of inquiry, utilising an inductive approach to understand the conceptual framework of waqf and financial inclusion and in discussing Sharīʿah compliance aspects of socially-oriented instruments in socio-economic development. Findings — The research finds some historical antecedents to evidence the inherent social mission of waqf which, if integrated with microfinance, ensures the sustainability of Islamic MFIs. This affirms that outreach and sustainability may not be mutually exclusive under waqf and Islamic microfinance integration. Originality/Value — This study, through historical antecedents and contemporary practices, establishes that waqf and microfinance integration can address the sustainability of the Islamic microfinance industry and preserve its social mission.

Sustainable financial inclusion in Nigeria: a need to go beyond access to impact

Purpose This paper aims to evaluate the processes and strategies of Nigerian banks towards achieving financial inclusion and offer recommendations for policies that can lead to effective and sustainable financial inclusion. Design/methodology/approach This paper conducts semi-structured interviews with senior executives of Nigerian banks to investigate their financial inclusion policies and practices. Findings This paper highlighted Nigerian banks’ views on dimensions that measure financial inclusion and found that they recognise that they play a pivotal role in providing access to formal financial services; however, their efforts to promote financial inclusion are provider-focused rather than customer-focused; they are keen to promote financial services usage; however, very little attention is paid to customer outcomes; financial inclusion is viewed as synonymous with access and innovations are not aiming for impact; and the sector is plagued with infrastructural challenges that breach service quality. Originality/value This paper reports on the practices of Nigerian banks towards financial inclusion and provides recommendations for rethinking sustainable financial inclusion. To date, this issue has not been investigated in the substantive literature. Nigeria is an ideal research site for examining financial inclusion. In recent years, the banking sector has made rapid strides in implementing policies to promote the adoption and usage of formal financial services. However, over half of the country’s adult population remains outside the formal financial system.

Fintech for Sustainability in Business and Economics Research

Purpose: Fintech for sustainability is pivotal for business and economics as it harnesses technology to drive environmentally and socially responsible practices while enhancing economic efficiency and growth. This paper discusses the research trends and future research implications of fintech in sustainable economic operations. Methods: This study extracted scholarly articles from the Scopus database and adopted the PRISMA framework and bibliographic analysis to uncover publication trends, research, affiliation, geographical circumstances, keywords trends, thematic trends, and bibliographic coupling to assess current practices and pinpoint future research directions of fintech to adopt the wider sustainability practices in business and economy. Results: Steady progress has been made in developing fintech applications to achieve sustainability. There is notable research collaboration in both developing and developed economies. Recent keyword trends indicate a growing interest in sustainability and digital transformation. The thematic map demonstrates that the digital economy is a well-established topic. However, there is a need for new research in financial technology-based climate solutions to address significant sustainability gaps. This study identified the impact of emerging financial technologies on sustainability as a widely researched area. We suggested the connection between sustainability and the fintech ecosystem, sustainable financial inclusion, open fintech innovation, and fintech stability as potential areas for future research to expedite fintech adoption in sustainability goals. Implications: Researchers, regulators, and policymakers can utilize the conclusions drawn from the research questions to craft a distinctive framework outlining strategic approaches and actionable plans for developing fintech policies that facilitate faster adoption of sustainability practices.

The Effect of Islamic Financial Socialization and Education on Public Interest in Using Islamic Banking Services

This study used SPSS analysis tool to investigate the effect of Islamic financial socialization and education on public interest in using Islamic banking services, involving a sample of 66 respondents in two major cities in Indonesia. A survey method with a questionnaire was used to collect data, which was then statistically analyzed using SPSS. The results of data analysis showed that Islamic financial socialization and education had a significant positive impact on increasing public interest in Islamic banking services. This finding confirms that an effective educational approach in improving the understanding of Islamic finance principles, such as profit-sharing and the prohibition of riba (interest), plays an important role in supporting the growth of the Islamic banking sector in Indonesia. Consequently, Islamic banks and financial institutions need to continuously improve their Islamic financial socialization and education strategies to expand people's access to religiously-compliant financial services and to strengthen sustainable financial inclusion in the country. This study aims to explore the effect of Islamic financial socialization and education on people's interest in using Islamic banking services, using SPSS analysis tools and involving a sample of 66 respondents in two major cities in Indonesia. A questionnaire survey method was used to collect data covering respondents' perceptions and level of understanding of Islamic finance concepts. The collected data were then statistically analyzed using SPSS to evaluate the relationship between socialization and education variables with interest in using Islamic banking. The results showed that Islamic financial socialization and education had a significant impact on increasing public interest in Islamic banking services. More than 65% of respondents showed increased interest after being involved in the socialization and education program. This finding reinforces the importance of a comprehensive education strategy in explaining the principles of Islamic finance such as profit-sharing, prohibition of riba (interest), and transparency in financial practices. The implication of this study is the importance of Islamic banks and financial institutions to continue developing Islamic financial socialization and education programs as part of the effort to build public understanding and trust in Islamic financial products. This will not only support the growth of the Islamic banking sector in Indonesia, but also strengthen broader and more sustainable financial inclusion within it. As such, this study contributes to supporting sustainable economic development through the promotion and adoption of Islamic financial principles that are in line with religious values.

A Comprehensive Review on Cybersecurity Issues and Their Mitigation Measures in FinTech

The fourth industrial revolution has seen the evolution and wide adoption of game-changing and disruptive innovation, "financial technologies (FinTech), around the globe. However, the security of FinTech systems and networks remains critical. This research paper comprehensively reviews cybersecurity issues and their mitigation measures in FinTech. Four independent researchers reviewed relevant literature from IEEE Xplore, ScienceDirect, Taylor & Francis, Emerald Insight, Springer, SAGE, WILEY, Hindawi, MDPI, ACM, and Google Scholar. The key findings of the analysis identified privacy issues, data breaches, malware attacks, hacking, insider threats, identity theft, social engineering attacks, distributed denial-of-service attacks, cryptojacking, supply chain attacks, advanced persistent threats, zero-day attacks, salami attacks, man-in-the-middle attacks, SQL injection, and brute-force attacks as some of the significant cybersecurity issues experienced by the FinTech industry. The review paper also suggested authentication and access control mechanisms, cryptography, regulatory compliance, intrusion detection and prevention systems, regular data backup, basic security training, big data analytics, use of artificial intelligence and machine learning, FinTech regulatory sandboxes, cloud computing technologies, blockchain technologies, and fraud detection and prevention systems as mitigation measures for cybersecurity issues. However, tackling cybersecurity issues will be paramount if FinTech is to realize its full potential. Ultimately, this research will help develop robust security mechanisms for FinTech systems and networks to achieve sustainable financial inclusion.

Effect of Digital Banking Technology on Loan Uptake in Hotels Industry in Kenya

Digital banking technology is having a profound impact on businesses and corporate borrowing behavior. Integrating digital banking technology and its impact on hotel borrowing is a critical challenge. Limited digital literacy, uneven technology adoption and inadequate regulatory support prevent hotels from reaping the benefits. This study is based on three theories: the technology acceptance model, Institutional theory and the resource-based verification theory. This study uses literature review methodology to draw analysis and conclusions. Studies suggest that these technologies have democratized access to credit, empowered previously underserved populations, and improved financial inclusion. However, alongside these benefits, criticism of the literature also reveals ongoing concerns. These include questions of digital literacy, data security and the possible exclusion of marginalized groups. Additionally, questions arise regarding the effectiveness of digital lending platforms in accurately assessing creditworthiness and managing associated risks that may impact credit quality and overall financial stability. Although digital banking technology offers opportunities to expand access to credit, it is important to address these challenges to ensure equitable and sustainable financial inclusion outcomes. The study concludes that by leveraging the potential of mobile banking, digital payment systems and online lending platforms, hotels can more effectively address financial challenges and seize opportunities for sustainable development and success in the dynamic business landscape.

The Role of Islamic Microfinance in Increasing Sustainable Financial Inclusion in Indonesia: A Systematic Literature Review

Sustainable financial inclusion is one of Indonesia's key economic development goals. Islamic microfinance is becoming an important tool to achieve this goal. The purpose of this study is to analyze the contribution of Islamic microfinance to increasing sustainable financial inclusion in Indonesia. The method in this study is through a qualitative approach by analyzing several articles, and related research. The result of this study is that Islamic microfinance, particularly in rural and remote areas, has significantly improved access to financial services for previously underserved groups. However, broader financial inclusion is still difficult to achieve due to issues such as complex regulations, lack of public knowledge about Islamic microfinance concepts, and program scalability.

Financial inclusion of urban agro-processors: effect of credit on poverty status of roasted plantain vendors in Calabar, Nigeria

This study analysed the effect of credit on the poverty status of roasted plantain vendors in Calabar, Nigeria. The study described sources of credit, comparing the poverty status of credit recipients versus non-recipients, and the relationship between credit access and poverty index alongside the relationship between socioeconomic factors and poverty index. Data was collected from 110 randomly sampled roasted plantain vendors with the use of structured questionnaire. Poverty was measured with the Foster, Greer and Thorbecke (FGT) model class of weighted poverty measures. Descriptive statistics were used to examine poverty status, access to credit and the sociodemographic attributes of the roasted plantain vendors. Next, using descriptive statistics, the poverty status of the vendors who accessed credit was compared to those who did not access credit. Finally, the association between access to credit and poverty index was analyzed with logistic regression model while adjusting for the effects of sociodemographic factors. Descriptive statistics showed that 60% of the vendors were female, the average age was 35 years, and the average household size was four persons. Precisely, 91% of the roasted plantain vendors had completed primary or higher education. Exactly, 64.5% received credit, while 30.79% reported non-institutional lenders as sources of credit. The mean monthly income was N48,036.36 (US$116.89). Poverty incidence was lower among credit recipients (0.268) compared to non-recipients (0.487). Credit access (OR = .083, p<.01) and household (OR=2.496, p<.01) had statistically significant associations with the poverty index. Policies promoting structural transformation are recommended for sustainable financial inclusion. An effective economic growth and development program, for example, will increase productive capacities and reduce capital losses, increase creditworthiness, motivate capital expansion and sustainable growth. Also, it was recommended that cooperative formation among the vendors is required. Membership of such a cooperative will increase credit access through reduced transaction cost, higher group’s creditworthiness/borrowing experience and stronger negotiation capacity. A Nigerian economic transformation program to promote increased productive capacities and reduced capital losses is necessary for any financial inclusion policies to sustainably alleviate poverty among deprived agro-processors such as the roasted plantain vendors. Such programs will include financial literacy including banking and loan repayments, business innovations, and business plan development. Key words: Credit, Financial inclusion, Micro-agro-processors, Plantain roasting, Poverty, Urban agriculture

Financial inclusion of urban agro-processors: effect of credit on poverty status of roasted plantain vendors in Calabar, Nigeria

This study analysed the effect of credit on the poverty status of roasted plantain vendors in Calabar, Nigeria. The study described sources of credit, comparing the poverty status of credit recipients versus non-recipients, and the relationship between credit access and poverty index alongside the relationship between socioeconomic factors and poverty index. Data was collected from 110 randomly sampled roasted plantain vendors with the use of structured questionnaire. Poverty was measured with the Foster, Greer and Thorbecke (FGT) model class of weighted poverty measures. Descriptive statistics were used to examine poverty status, access to credit and the sociodemographic attributes of the roasted plantain vendors. Next, using descriptive statistics, the poverty status of the vendors who accessed credit was compared to those who did not access credit. Finally, the association between access to credit and poverty index was analyzed with logistic regression model while adjusting for the effects of sociodemographic factors. Descriptive statistics showed that 60% of the vendors were female, the average age was 35 years, and the average household size was four persons. Precisely, 91% of the roasted plantain vendors had completed primary or higher education. Exactly, 64.5% received credit, while 30.79% reported non-institutional lenders as sources of credit. The mean monthly income was N48,036.36 (US$116.89). Poverty incidence was lower among credit recipients (0.268) compared to non-recipients (0.487). Credit access (OR = .083, p<.01) and household (OR=2.496, p<.01) had statistically significant associations with the poverty index. Policies promoting structural transformation are recommended for sustainable financial inclusion. An effective economic growth and development program, for example, will increase productive capacities and reduce capital losses, increase creditworthiness, motivate capital expansion and sustainable growth. Also, it was recommended that cooperative formation among the vendors is required. Membership of such a cooperative will increase credit access through reduced transaction cost, higher group’s creditworthiness/borrowing experience and stronger negotiation capacity. A Nigerian economic transformation program to promote increased productive capacities and reduced capital losses is necessary for any financial inclusion policies to sustainably alleviate poverty among deprived agro-processors such as the roasted plantain vendors. Such programs will include financial literacy including banking and loan repayments, business innovations, and business plan development. Key words: Credit, Financial inclusion, Micro-agro-processors, Plantain roasting, Poverty, Urban agriculture

Impact of Sustainable Financial Inclusion, Institutional Quality on Financial Stability: Empirical Evidence from Asian Countries

Impact of Sustainable Financial Inclusion, Institutional Quality on Financial Stability: Empirical Evidence from Asian Countries

Determinants of Sustainable Financial Inclusion in Sub-Saharan Africa: A System GMM Approach

Determinants of Sustainable Financial Inclusion in Sub-Saharan Africa: A System GMM Approach

Islamic Fintech and Financial Inclusion: Innovations for Sustainable Economic Empowerment

The rapid growth of financial technology (fintech) has had a significant impact on the global financial sector. In the context of Islamic economics, Shariah-compliant fintech can be an innovative tool to promote sustainable financial inclusion. This paper aims to analyze the role of Islamic fintech in improving access to financial services from an Islamic economic perspective. The research methods used include an in-depth literature analysis of the concept of financial inclusion in Islam, an exploration of various existing Islamic fintech services, as well as successful case studies that reflect the implementation of this concept in society. Through this approach, this paper explains how Islamic fintech can provide solutions to financial access challenges in underserved communities. The analysis shows that Islamic fintech can provide access to a wider range of financial services and empower individuals and micro businesses. Concrete examples of services such as Islamic digital payment services and Islamic peer-to-peer lending show a positive impact in supporting financial inclusion and economic growth in various communities. However, the challenges in the form of complex regulations and the public trust that needs to be built should not be overlooked. This paper also analyzes the opportunities and challenges faced by Islamic fintech in creating a sustainable financial inclusion ecosystem that is in line with Shariah principles. In conclusion, the paper underlines the great potential of Islamic fintech as an innovative tool to achieve better financial inclusion in the Islamic economy. Policy recommendations and further implications are also discussed to ensure the sustainable development of Islamic fintech and its wider positive impact.

Gravitating towards Fintech: A study on Undergraduates using extended UTAUT model

One of the most pressing issues affecting people worldwide is the accessibility of financial services in the wake of the COVID-19 outbreak. While peoples' adoption of technological advancements has spiraled over time, the acceptance of Fintech services edged up for instilling resilience during the pandemic. Hence, the study aims at exhuming the Fintech adoption for sustainable financial inclusion among young undergraduate users through the Unified Theory of Acceptance and Use of Technology (UTAUT) model. To test the model, the researchers obtained data from 375 undergrads. The study adopted the Structural Equation Modelling (SEM) approach in AMOS software to examine the determinants that affect the users to embrace Fintech services. The findings revealed that performance expectancy, effort expectancy, and facilitating conditions significantly influence the students' intention to use Fintech, whereas, the users’ facilitating condition and behavioral purposes positively influence them to use the financial technology. Interestingly, the social influence and personal innovativeness did not affect their intention to accept and adopt Fintech. Therefore, the study results will help explore the expectations, preferences, and actual level of use of Fintech among undergraduates and contribute to the escalation of Fintech use, leading to sustainable financial inclusion.

Islamic Financial Surplus for Energy and Gas Investment: Towards Financial Inclusion for Improving Living Condition of Needy and Poor in Nigeria

Undoubtedly, Nigeria is the topmost producer of energy and gas in the entire African continent. However, there is an abject poverty in the country and the global financial crisis and weaknesses of conventional financial system in predominant Muslim countries including Nigeria have not made the experts to critically explore Islamic financial surplus for energy and gas investment in order to solve the problems of needy and poor in the country. There is need to bridge the gap of financial inclusion with specific attention on energy and gas investment with specific attention on Islamic financial surplus in order to improve the living conditions of the needy and poor in the country. It is essential to utilize financial surplus derivable from energy and gas investment for sustainable financial inclusion for enhancing living condition of the needy and poor people in the society. Shari’ah compliant investment is emphatically stressed as a central climax of this study. Qualitative research design was employed in this paper using content analysis and systematic literature review. The results of the study demonstrated that Islamic financial surplus can be instrumentally related to energy and gas investment where the surplus can be adequately used for empowerment of the needy and poor people in the society. By emphasizing on Islamic financial surplus especially in connection with energy and gas investment, it will expand the understanding about Islamic economy system for financial inclusion beyond banking sector. Thus, adequate use of Islamic financial surplus in energy and gas sector will practically reduce high rate of abject poverty among the needy and the poor in the Nigerian society by attaining economic growth. Most studies on Islamic financial surplus are emphatically on banking sector. This study expands the understanding of the Islamic financial surplus by importantly relating it to energy and gas sector.

THE LONG-RUN IMPACT OF E-PAYMENT ON FINANCIAL INCLUSION IN NIGERIA

The link between e-payment system and financial inclusion (FI) is the fundamental interest of this paper. Series from the economy of Nigeria were adopted in testing the long-run equations of e-payment and FI. Furthermore, the normalized cointegration technique was applied to ascertain the definite relationship among our series. Our findings suggest that a long-run positive relationship existed between the surrogates of e-payments and financial inclusion in Nigeria. We recommended the widening and deepening of the e-payment mechanism in Nigeria to enhance sustainable financial inclusion.
 Keywords: E-payment, Financial Inclusion, Normalized Cointegration, Nigeria.
 JEL Classification:G20,G21,G28,C520.

Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups

Financial inclusion is a crucial link in achieving the Sustainable Development Goals (SDGs). Strengthening the capability of financial institutions to provide inclusive financial services can help to narrow the inequality gap and increase access to opportunities. Digitalization, with its competitive advantages and rapid growth, may be a powerful tool to foster financial inclusion and sustainable development. This paper examines the effects of bank digitalization on sustainable financial inclusion and explores two underlying incentive mechanisms in banks: profit driven and risk aversion. We construct a basic model and a mechanism model and exploit a nonlinear attempt, heterogeneous estimation as well as supplementary variable and instrument variable methods for a robustness test. The results of the basic model demonstrate that bank digitalization has significant positive effects on financial inclusion and the current financial inclusive effects are sustainable. The mechanism models designed as the mediation effect panel model suggest that digitalization enables banks to expand the business probability frontier of profit-driven behavior and pursuit of credit portfolio diversity in risk aversion behavior, thereby promoting sustainable financial inclusion. As a result of digitalization, vulnerable groups can benefit from sustainable financial inclusion, while financial inclusion feeds back into banks’ sustainable development. This paper conforms to the trend of the development of digitalization and provides theoretical and empirical support for banks to build digitalization and realize sustainable financial inclusion, which contributes to the “triple-win” financial ecology for improving banks’ performance, increasing the rights of vulnerable groups and promoting sustainable development throughout society.