Usage Of Financial Services Research Articles

Pengaruh Knowledge Gap dan Service Quality terhadap Digital Financial Service Experience dengan Internet Usage sebagai Moderator

Presently, the widespread adoption of digital transformation is profoundly shaping various industries, driving businesses to expand their digital footprint. In the financial sector, not only traditional banks but also a variety of companies, particularly those in the technology domain like Goto, Shopee, and Traveloka, are entering the market to provide digital financial services, emerging as strong contenders. With numerous companies offering digital financial services in Indonesia, there is a compelling push for businesses to vie in delivering top-notch services to customers, thereby enriching satisfaction and user experience. This research aims to explore the factors influencing the user experience of digital services, specifically within the realm of digital financial services. Employing a purposive sampling technique, the researchers determined the appropriate number of reliable and valid samples for the study. Questionnaires were distributed to Indonesian users of digital financial services to gather primary data, resulting in the analysis of 112 samples. The study indicates that knowledge gaps impact an individual's evaluation of the quality of digital financial services, and service quality significantly influences how users perceive their experience with digital financial services. Notably, no moderating effect of internet usage was detected in the relationship between knowledge gaps and service quality concerning the experience of digital financial services.

The impact of financial deepening on agricultural production: A household-level analysis of BigTech finance

The relationship between financial deepening and agricultural production remains ambiguous. Previous literature has demonstrated that financial depth can alleviate poverty among rural households by facilitating self-employment in non-agricultural sectors or migration to urban areas, but its impact on rural households engaged in the agriculture sector has not been discussed. This paper utilizes the usage of financial services provided by a leading BigTech company in China and household survey data to analyze how financial deepening affects rural households’ agricultural production. The findings demonstrate the efficacy of BigTech finance in augmenting agricultural income for rural households. Mechanism analysis reveals that this impact is only observed among financially constrained rural households or those affected by climate disasters, thereby facilitating an expansion in the agricultural production inputs and enhancing efficiency. Furthermore, the distributional analysis underscores that BigTech finance primarily benefits rural households with limited access to traditional financial services, suggesting its complementary role to traditional finance in bolstering agricultural production amidst financial deepening endeavors.

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.

The impact of digital finance and financial inclusion on banking stability: International evidence

Research background: Achieving a jointly stable and inclusive financial system represents an important pillar of the call for action among Sustainable Development Goals. Considerable attention from previous research has been given to traditional financial inclusion (FI) and its implications on financial stability and overall development, but the findings are mixed. Furthermore, there is limited evidence related to the implications of digital financial inclusion on banking system stability. Therefore, the present study tends to address two main research questions, as follows: Can traditional financial inclusion protect banking stability? Can digital finance inclusion become a new driving force to promote banking stability? Purpose of the article: The paper aims to assess the influence of both traditional and digital financial inclusiveness on banking stability, using quantile regression, across a panel of 81 countries. We also examine the potential transmission channels through which financial inclusiveness influences banking stability. Methods: We construct three different financial inclusion indices, which capture the degree of access and usage of financial services, based on a three-stage Principal Component Analysis. Next, based on quantile analysis, we test the role of these financial inclusion indices in shaping banking stability. Findings & value added: We provide international evidence on the non-linear relationship between traditional and digital FI and banking stability, respectively. Our empirical findings suggest that FI indices are negatively related to banking stability until a certain threshold, after which, increases in financial inclusiveness have a positive effect on banking stability. The magnitude of the impact is more sizeable for low-range quantiles, meaning that the effect of digital inclusiveness is more pronounced in countries with excessive risk-taking tendencies. We find support for operational efficiency transmission channels and uncover new evidence on the association between digital FI and banking stability.

A STUDY ON FINANCIAL INCLUSION AND ECONOMIC GROWTH: WHAT ROLES DO INSTITUTIONS AND FINANCIAL REGULATION PLAY

This study examines the relationship between financial inclusion, economic growth, and the roles of institutions and financial regulation. Financial inclusion, defined as access to and usage of financial services by all individuals and businesses, is increasingly recognized as crucial for fostering economic development. Institutions such as banks, microfinance organizations, and regulatory bodies play pivotal roles in promoting financial inclusion through policies and initiatives that enhance accessibility and affordability of financial services. Effective financial regulation ensures stability and consumer protection, thereby fostering trust and participation in financial markets. By analyzing empirical data and case studies, this study aims to provide insights into how improved financial inclusion, supported by robust institutional frameworks and regulatory environments, can contribute to sustainable economic growth. Understanding these dynamics is essential for policymakers and stakeholders seeking to enhance inclusive economic development strategies globally.

The Effect of Financial Inclusion on Enterprise Performance in Cameroon

Financial inclusion is an important policy objective in many countries, including Cameroon. The aim is to provide access to financial services to all segments of the population, including those who are traditionally excluded from the formal financial system. This paper examines the effect of financial inclusion on enterprise performance in Cameroon. Specifically, it investigates how access to financial services affects the financial performance of enterprises in the Cameroon. The study uses quantitative method to analyse data from a sample of enterprises operating in different sectors of the economy. The findings suggest that financial inclusion has a positive effect on enterprise performance, as it enables enterprises to access credit, use financial services, and make strategic investments. However, the impact of financial inclusion is not uniform across different types of enterprises, and there are some challenges that need to be addressed to ensure that the benefits of financial inclusion are widely shared. The paper discovered that financial inclusion can be measured through various indicators such as access to financial services, usage of financial services, and quality of financial services. The paper concludes with some policy recommendations for promoting financial inclusion and improving enterprise performance in Cameroon.

Whether they are Empowered in Usage of Financial Services: A study among Kudumbashree Workers

Whether they are Empowered in Usage of Financial Services: A study among Kudumbashree Workers

Effect of Digital Banking on Financial Performance of Micro and Small Enterprises in Nairobi County, Kenya

The financial performance of MSEs is critical to the performance of the economy since MSEs are some of the best supporters of the government through employment. In recent years banks have developed innovative products and offered a wide range of services to improve their performance, which is the ultimate goal of banks (Mugodo, 2016). Digital banking has several benefits to financial services users such as micro and small enterprises and digital banking providers. The general objective of the study is to establish the effect of digital banking on the financial performance of micro and small enterprises in Nairobi County, Kenya. The specific objectives of the study are to determine the effect of digital payments on the financial performance of micro and small enterprises in Nairobi County, to establish the influence of digital credit on the financial performance of micro and small enterprises in Nairobi County, and to establish the influence of digital savings on the financial performance of micro and small enterprises in Nairobi County, Kenya. The study was guided by the theory of financial innovations, the technology acceptance model theory, and the diffusion of Innovation Theory. This study employed an explanatory research design. The target population is comprised of retail traders/managers in the micro and small enterprises in Nairobi County. For purposes of this study, the population was MSEs, which conduct their business in Nairobi County. From the target population of 10,079 retail traders, Fishers et al (2007) formula was used to pick a sample of 384 retail traders as the sample of the study. The study utilized a semi-structured questionnaire to collect data from the respondents. Data was analyzed aided by descriptive statistics, including variability and central tendency measures of frequencies. The findings of the diagnostic tests revealed that there was no multi-collinearity among the independent variables (VIF=1.281), and the results of the normality test showed that the variables were normally distributed. The findings of the study were that there was a positive and significant relationship between digital payments and financial performance (β1=0.682, p=0.0000.05), there was also a positive and significant relationship between digital credits and financial performance of micro and small enterprises (β2=0.266, p=0.0030.05). There was also a positive and significant relationship with the financial performance of micro and small enterprises in Nairobi County (β3=0.488, p=0.0070.05). The study concluded that digital payments, digital savings, and digital credits had a positive and significant effect on the performance of micro and small enterprises in Nairobi County. The study recommends that more needs to be done in terms of application security due to the risk of cyber-attacks and fraud. Institutions should invest more in research to ensure that their applications used by customers are safe to prevent cyber-attacks and fraud. The study also recommends that MSE’s need to maintain a good record of credit and improve on their saving to access more credit through digital credit applications.

Financial inclusion and the informal sector

This paper explores the relationship between the informal sector and financial inclusion for a sample of 186 countries across the period 2004–2018 by using various methods of estimations—ordinary least squares, instrumental variables, fixed effects, and general method of moments. The results show financial inclusion significantly reduces the size of the shadow economy throughout indicators of access and usage of financial services. The results are also robust when controlling by income level, these results strongly support the use of financial inclusion as an effective vehicle to lessen informality. Our policy recommendations are directed towards improving financial infrastructure and fostering inclusive financial environments to effectively decrease informality. Adopting dynamic, long-term strategies to sustain financial inclusiveness is key to achieving lasting reductions in the informal sector.

Financial inclusion, digital technology, and economic growth: Further evidence

This paper examines the effects of financial inclusion and digital technology on economic growth. We also investigate the possibility of using digital technology to improve financial inclusion overall and bridge the financial inclusion gender gap. Through dynamic panel data estimation for 84 countries from 2011 to 2017, we find evidence that digital technology would complement the effect of financial inclusion on economic growth through increased usage of financial services as well as bridging the financial inclusion and gender gap. The empirical results are robust to the inclusion of various control variables and changes in specification.

The Mediating Effects of Financial Service Usage on the Relationship between Financial Literacy and Retirement Preparedness in the Cameroon Informal Sector

The last decade has witnessed significant research interest in the area of financial literacy with specific attention on poverty. However, based on evidence of over 80 papers published since 2014 by the Consultative Group to Assist the Poor, it was revealed that there is no significant comprehensive explanation of how the usage of financial services improves people’s financial satisfaction at retirement. To this effect, this study sought to examine the extent to which the usage of both formal and informal financial services affects the retirement preparedness of people engaged in the informal sector of Cameroon. In light of this, the study aimed at justifying the continuous utilization of informal financial services at the expense of formal financial services even when financial service users have access to formal financial services. The study examined individual levels of investment literacy, cash-flow management literacy, credit management literacy, and the usage of formal and informal financial services. The study used the geographical clusters to proportionately select 400 economically active users of financial services from the seven sub-divisions of Yaoundé. Survey data were quantitatively analyzed to test the statistical relationships using the Covariance-Based Structural Equation Model [CB-SEM] with the aid of SPSS and AMOS 24 statistical packages. Findings indicated that the usage of formal financial services and informal financial services hace positive significant statistical effects on retirement preparedness. Also, the study finds that the usage of formal financial services and informal financial services has positive significant mediating effects on financial literacy and retirement preparedness. The study thus proposes the implementation of a dualistiec financial inclusion model that recognizes that both the formal and informal financial services are beneficial in the improvement of individual’s retirement preparedness in the informal sector of Cameroon and as well as in the context of developing countries.

LEVERAGING AI AND DATA ANALYTICS FOR ENHANCING FINANCIAL INCLUSION IN DEVELOPING ECONOMIES

Financial inclusion, defined as the access and usage of financial services by all individuals and businesses, is critical for fostering economic development and reducing poverty, particularly in developing economies. However, significant portions of the population in these regions remain underserved or excluded from formal financial systems. Leveraging artificial intelligence (AI) and data analytics presents a promising avenue for addressing the challenges of financial exclusion and advancing financial inclusion in developing economies. This Review explores the role of AI and data analytics in enhancing financial inclusion. Firstly, AI technologies such as machine learning and natural language processing enable the analysis of vast datasets to identify patterns, behaviors, and creditworthiness of individuals and small businesses, thereby facilitating more accurate risk assessment and decision-making by financial institutions. Additionally, AI-powered chatbots and virtual assistants offer personalized financial guidance and support, improving accessibility to financial services for marginalized populations who may have limited literacy or access to traditional banking channels. Moreover, data analytics plays a crucial role in expanding financial inclusion by providing insights into customer preferences, spending habits, and transaction histories. By harnessing these insights, financial service providers can tailor their products and services to better meet the diverse needs of underserved communities, thereby increasing uptake and usage of formal financial services. Furthermore, data analytics enables the development of alternative credit scoring models that leverage non-traditional data sources such as mobile phone usage and utility payments, allowing individuals with limited credit histories to access credit on favorable terms. However, several challenges must be addressed to fully realize the potential of AI and data analytics in enhancing financial inclusion. These include concerns related to data privacy and security, ensuring the fairness and transparency of AI algorithms, and bridging the digital divide to ensure equitable access to technology-enabled financial services. In conclusion, leveraging AI and data analytics holds significant promise for enhancing financial inclusion in developing economies. By harnessing the power of these technologies, policymakers, financial institutions, and other stakeholders can work towards building more inclusive and resilient financial systems that empower individuals and businesses to participate more fully in the formal economy.
 Keywords: AI, Data Analytics, Financial Inclusion, Developing Economies, Leveraging.

The dynamic nexus between agricultural productivity and renewable energy consumption in BRICS: the role of financial inclusion and foreign direct investment

Purpose This study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct investment in Brazil, Russia, India, China and South Africa (BRICS) countries during 2000–2020. Design/methodology/approach The study has used the latest data from World Bank and International Monetary Fund databases. The dependent variable in the study is agricultural productivity. Renewable energy consumption, carbon emissions, financial inclusion and foreign direct investment are independent variables. Autoregressive distributed lag (ARDL) approach was used to examine the short-run and long-run impact of renewable energy consumption, carbon emissions, foreign direct investment and financial inclusion on agricultural productivity. Findings The findings imply that consumption of renewable energy, carbon emissions and foreign direct investment have a positive impact on agricultural productivity while financial inclusion in terms of access does not seem to have any significant impact on agricultural productivity. Providing farmers, access to financial services can be beneficial, but its usage holds more importance in impacting rural outcomes. The problem lies in the fact that there is still a gap between access and usage of financial services. Research limitations/implications Policymakers should encourage the increase in the usage of renewable energy and become less reliant on non-renewable energy sources which will eventually help in tackling the problems associated with climate change as well as enhance agricultural productivity. Originality/value Most of the earlier studies were based on tabular analysis without any empirical base to establish the causal relationship between determinants of agricultural productivity and renewable energy consumption. These studies were also limited to a few regions. The study is one of its kind in exploring the severity of various factors that determine agricultural productivity in the context of emerging economies like BRICS while accounting for the effect of financial inclusion and foreign direct investment.

Effect of Financial Literacy on Utilisation of Financial Services in Kaski District

Financial literacy is a key driver of financial inclusion, as people need the financial services that banks and other financial institutions offer. This study aims to examine the effect of financial literacy on the usage of financial services in Kaski district of Nepal. For this study, 400 sample households were chosen at a five percent margin of error, and the major decision maker for each household was chosen as the respondent. The researcher used close-ended, self-administered questionnaires to gather data. The researcher used descriptive statistics and inferential statistics such as frequency percentage distribution, exploratory factor analysis, and structural equation modelling. The study found a significant positive impact of financial literacy on the usage of financial services. This study concludes that usage of financial services among households in Kaski can be enhanced through increased financial literacy. Financial literacy programmes encourage people to use more financial services by providing adequate knowledge about financial products and services and their advantages and disadvantages. These results are very helpful to policymakers in increasing the usage of financial services through financial awareness programmes.

Inclusive Finance for SMEs in Pakistan: A Supply-Side Perspective

Objective: Inclusive finance aims to escalate the access and usage of financial services among SMEs and individuals as well. Therefore, it is mainly concerned with efforts towards financial inclusion, which means easy access and usage of a wide range of affordable financial products and services by everyone, provided by a variety of sound, responsible, and sustainable financial institutes. In Pakistan, SMEs face severe issues towards access to formal finance and bound to meet their financial needs by using informal finance. This study aims to highlight the supply-side factors impacting SME's access to finance in Pakistan. Methodology: This quantitative research has been conducted in the five big cities of Punjab province. By using a stratified sampling technique SMEs from three main sectors have been included in this study manufacturing, services and trading. Findings: In line with prior research study concluded that for inclusive growth and development, provision of resources, favourable policies and regulatory reforms, financial and other national institutions, international bodies support can bring significant change in the status of SMEs in Pakistan. Implications: Current study will be helpful for policy makers and financial institutions to formalize their structure and strategies to facilitate SMEs in Pakistan.

Energy efficiency, financial inclusion, and socio-economic outcomes: Evidence across advanced, emerging, and developing countries

This study analyzes the effects of financial inclusion and energy efficiency on socio-economic performance across advanced, emerging, and developing economies. We view financial inclusion from the lens of access to and usage of financial services, while energy intensity represents energy efficiency. The panel quantile regression model is employed to capture the nonlinear impacts of financial inclusion and energy efficiency across the conditional distributions of the socio-economic indicators. We find that financial inclusion broadly improves the socio-economic markers, except employment in developing economies. Comparatively, the effect of access to financial services is stronger than the effect of the usage of financial services. On the other hand, the impact of energy efficiency is quite heterogeneous across the country groups and the socio-economic indicators, being sensitive to the level of economic development of the countries. Overall, energy efficiency has the strongest influence in advanced economies, but a moderate influence in the emerging and developing economies. Our results provide imperative policy reflections for the policymakers in the underlying countries, particularly on properly channeling financial resources and enhancing energy efficiency to benefit the various components of their economies.

Nexus Between Financial Inclusion and Inclusive Growth, The East Africa Case Study

This article empirically investigates the quantitative relationship between financial inclusion and inclusive growth in the East Africa Region. The study employs Driscoll and Kraal's augmented fixed effects estimation technique to analyze data from 2011 to 2021 for five Eastern African Countries. The results show that inclusive growth is positively impacted by financial inclusion. In terms of usage of financial services by gender, on average, a percentage increase in female account ownership and male account ownership will lead to a 0.025% and 0.024% increase in inclusive growth, respectively. The study also found a link between prosperity and inclusive development. This data emphasizes the need for the creation of special agents' tools to provide financial services to the underprivileged and women, as well as the recommendation that financial institutions implement programs to raise adult populations' financial literacy in order to increase access and usage of financial services.Nexus Between Financial Inclusion and Inclusive Growth, The East Africa Case Study

Bibliometric Analysis on Mobile based Financial Technology and Financial Inclusion

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

Robust Financial Inclusion Framework by Examining Literacy Aspects in Oman

This research examines how Internet finance and challenges (IFC) affect Oman’s banking sector’s financial inclusion (FIN). This research also examines the mediating function of digital literacy (DL) and financial literacy (FL). The conceptual model hypothesis was tested using a questionnaire with study construct items. Financial services and customers at selected Oman banks were sampled using purposive sampling. To test model fitness and derive hypothesis outcomes, AMOS was used to analyze these data using PLS-SEM. The IFC and FIN of financial services users were positively and significantly associated, and DL and FL mediated this connection. This research highlighted DL and FL as the mediating mechanism, adding to the literature on IFC and FIN. FIN must address Internet finance issues, and the government must create regulations to improve financial service consumers’ DL and FL to boost FIN in Oman. This research is innovative and distinctive since it emphasizes the necessity of technological literacy to make it easier for banks and other financial institutions to deliver financial services to the Sultanate of Oman.

Financial Inclusion And Economic Growth In Nigeria

Financial inclusion signifies the practice of granting access to financial services and credit to families, enterprises, and administrations at reasonable prices. It encompasses measures designed to augment the utilization of official financial offerings within the economic framework. This research employed an ex-post facto study design to evaluate data on elements like banking penetration, usage of financial services, and access to financial services, concerning GDP growth. Relationships and interactions among these factors were scrutinized using the Autoregressive Distributed Lag Model (ARDL), which displayed strong explanatory capabilities and statistical validity. The research revealed that, without inputs from access to financial services, the usage of financial services, and banking penetration, the self-sustaining gross domestic product (GDP) is negative and statistically noteworthy. Over the short term, a negative link is observed between GDP and access to financial services (AFS); however, in the long term, AFS manifests a positive correlation with real GDP (RGDP). The usage of financial services (UFS) demonstrates a favorable relationship with GDP, accentuating the necessity of bolstering financial literacy and inspiring individuals and enterprises to effectively make use of financial services. The existing phase of banking penetration (BP) exerts a negligible impact on economic growth, but it is vital for policymakers to persistently observe and evaluate its long-term influence. Upholding a facilitative regulatory setting and stimulating rivalry within the banking sector are essential for enduring economic development. The regression analysis furnishes policy suggestions aimed at amplifying access to finance, boosting financial literacy, and confronting issues related to banking penetration. By tackling constraints that limit access to finance, upgrading infrastructure, and diminishing entry obstacles, sustainable economic growth can be achieved. Advocating for financial literacy and encouraging the adoption of financial services have the potential to elevate economic activities and spur GDP growth. Even though the current influence of banking penetration is not significant, it remains crucial for policymakers to keep track of and analyze its future implications.