Use Of Financial Products Research Articles

A qualitative investigation of financial decision-making and enabling factors among ethnic minority young adults in Hong Kong

Current understanding of financial decision-making among racial/ethnic minority young adults is limited: day-to-day financial decisions of racial/ethnic minorities are underexamined, younger racial/ethnic minorities receive limited attention, studies on racial/ethnic minorities are mainly conducted in Western societies, and research on financial literacy and decision-making is predominantly quantitative in nature. Against this backdrop, this study utilized a qualitative approach to examine a range of financial decision-making among ethnic minority young adults in Hong Kong, including personal budgeting, spending, financial planning, the use of financial products, debt management, and the detection of financial fraud. Individual interviews were conducted with 53 Pakistani, Indian, Nepalese, and Filipino participants aged 18 to 29 who employed various budgeting strategies and faced challenges. Their spending was modest, and they espoused various spending philosophies. Many saved approximately one-third of their income using saving tactics and setting financial goals, and investing in both Hong Kong and their home countries. Informal borrowing was common, though some sought alternative loans. One-third used credit cards, with accompanying occasional risks. Despite employing protective tactics, they still fell victim to scams. Factors facilitating their financial decision-making include family social capital, intrapersonal characteristics, social dynamics factors, command of knowledge, and facilitative contextual circumstances. This study addresses knowledge gaps by providing an in-depth understanding of financial decision-making among ethnic minority young adults in a non-Western context. It has significant implications for timely and tailored financial literacy education for minority societal members.

CURRENT ASPECTS OF THE IMPACT ON THE FORMATION OF FINANCIALLY LITERATE BEHAVIOR OF RUSSIAN YOUTH IN THE CONTEXT OF SANCTIONS PRESSURE

The purpose of the study. Research of aspects of more literate behavior of young people in financial activities. The article examines the current aspects of the impact on the formation of financially literate behavior of Russian youth under the conditions of sanctions pressure. It is noted that in these conditions, the role of a sociologist is increasing in the need to provide various government structures with real information on various problems of society, and primarily in the financial sphere. The authors emphasize that “sustainable improvement of the quality and standard of living of citizens requires improving financial literacy and the formation of a financial culture, ensuring the financial well-being of citizens, their conscious use of financial products and services, reasonable financial decision-making, investment and risk management”. The work emphasizes that today the level of financial literacy and financial culture among young people is not at the proper level. At the same time, the financial culture of young people shows positive growth, and there are significant prospects for its further improvement. The article proposes a number of measures to improve the financial culture of young people, create a favorable environment for the development of optimal financial behavior of young people. Findings. The paper concludes that in order to form a full-fledged financially literate behavior of young people, it is necessary to develop not only financial literacy and financial culture, but also to contribute to the formation of a genuine value world in the process of personal socialization.

The Role of Housewives in the Management of Household Finances

The aim of study focuses on evaluating the role of the housewives, regarding the terms such as: financial management, knowledge and use of financial products, financial planning, forecasting and savings as well, level of debt. Female workers from the “Duxom” Corporate participated in the study, which are located in the different headquarters in the State of Mexico, Progreso, Tabasco, Sinaloa, Sonora, Guadalajara, Veracruz, and Baja California. Of the total number of employees, a non-probabilistic sample was applied by self-determination, in order to obtain the greatest number of cases in the time established for the field study, which was two months. To obtain the data we used a scale, which integrates questions from the participants' profile, and 27 items related to financial management (9 items); knowledge and use of financial products (4 items); financial planning at home (4 items), foresight and savings (3 items), debt level (7 items). With the results, a four-factor model is validated, where we can see that women like to have items to impress people, and it gives them pleasure to buy luxury items. They agree to be guarantors for other people, they make extreme decisions in investments and something very risky, they make purchases even when they cannot pay them, since they prefer to have debts than to let their children go without gifts on important dates. They like to buy online because the internet makes everything easier for them. They recognize the importance of families setting financial goals to identify priorities. Finally, they consider that having a written financial plan is essential for successful financial management of income, savings and expenses, which translates into family success.

Impact of Financial Literacy of MSE’s on The Use of Financial Products

Objective – The purpose of this study is to find the impact of financial literacy of micro and small enterprises on financial products. Methodology/Technique – Data was collected through the distribution of questionnaires. The method used was data analysis using multiple regression analysis technique. The sample of this study was 70 small and micro enterprises in Sumba Island, East Nusa Tenggara. Findings – The findings reveal a positive correlation between financial literacy and financial products. Novelty – Improving financial literacy among SMEs will lead to increased use of financial products. The significance of this study is to implement information dissemination and training programs to improve financial literacy and promote the adoption of financial products among SMEs in Sumba Island. Type of Paper: Empirical JEL Classification: G02, G32, G39. Keywords: Inclusion, Financial Literacy, Financial Knowledge, Financial Behavior, Financial Attitude Reference to this paper should be made as follows: Amtiran, P.Y; Anabuni, A.U.T; Yuni, E; Balle, M.Y; Maima, J. (2024). Impact of Financial Literacy of MSE’s on The Use of Financial Products, J. Fin. Bank. Review, 9(1), 38 – 48. https://doi.org/10.35609/jfbr.2024.9.1(2)

What drive financial inclusion gender gap in Cameroon? A Fairlie decomposition approach

AbstractBased on a Fairlie decomposition method, this paper analyzes the drivers of gender gaps in financial inclusion in Cameroon. We use Finscope 2017 data for Cameroon and assess six distinct financial inclusion variables grouped into two dimensions mainly, access to and use of financial products and services. Our results show that there is a gap in all indicators of access to and use of financial products and services in favor of men. The results also show that the largest contributor to the gender gap in access to financial products and services is income, with more than 50% of the contribution, whereas the largest contributor to the gender gap in the use of financial products and services is education with an average contribution of more than 35%. Based on the above findings, decision‐makers in Cameroon must conduct economic policies toward facilitating equitable access to education, by providing incentives to attract women to gain higher education.

Financial Inclusion and the Indian Woman

Financial inclusion is aimed at providing banking/financial services to all people in a fair, transparent and equitable manner and at an affordable cost. The Rangarajan Committee (2008) viewed financial inclusion as imperative for inclusive growth and finance. An inclusive financial system facilitates efficient allocation of productive resources and thus can reduce the cost of capital. Leveraging with financial deepening of innovative products and services can make profitable inroads for a broad-based and inclusive financial system. This paper focuses on the need for financial products and services for women. Women face greater challenges in accessing formal finance due to several factors. The relatively low use of financial products by women may increase their vulnerability to income shocks and reduce their ability to invest, save and plan for the future. The relevance of access to financial products and services among women for development, poverty reduction and gender-equality is an issue receiving great attention. Women still do not derive their deserved benefit from institutional credit and capital flows. Women’s financial inclusion can make an important contribution to women’s economic empowerment. Improved financial inclusion and financial access for women, designed according to their needs, increases their opportunities to contribute to economic growth and better access to health and educational services. Women’s financial inclusion also has a significant impact on sustainable development. Designing financial literacy campaigns can help in bringing gender-sensitive information about financial markets, products and services in capital and money markets etc. Women leadership models can also strengthen associations of women with financial institutions. This paper tries to explain the causes for relatively less use of financial products and services of women and how they can be brought under the umbrella of financial inclusion for inclusive growth and sustainable development.

Financial Education and Banking Inclusion during the Pandemic Period

Abstract Objective The aim of this publication is to present the importance of financial education as it relates to influencing the level of banking inclusion during the COVID-19 pandemic. The individual sections of the article will characterize financial education as a driving force for improving financial literacy and highlight the link between financial literacy and the level and extent of use of financial products. The paper will consider the current situation on the financial markets, which is characterized by the COVID-19 pandemic. Methodology The first part of this paper is based on the systematic literature review, including scientific papers related to financial education, derived from the Web of Science databases, mapping analysis and bibliographic coupling using the Voswiever. The second part presents the results collected through an interview designed and disseminated to a sample of banking advisors. Findings The majority of interviewees encountered the concept of banking exclusion/inclusion, and in terms of characteristics that predispose one to remain excluded, advisors emphasized economic considerations. In various extracts from the interviews, banking advisors emphasized the importance of addressing the ability to afford banking services, their innovativeness, as well as understanding how banking products work, the benefits of entering into a relationship with a bank, and the prudent use of banking products on the basis of financial literacy. Value Added The value added is a multi-approach that combines the theoretical aspects of financial exclusion and financial literacy with the actual opinions of banking advisors. Recommendations Increased financial education is needed due to the complexity of financial products and their dynamic changes. The increased frequency and scope of use of financial products has increased the risk of cyber-attacks, against which financial literacy and risk awareness are needed. The development of modern technology in banking has increased the risk of banking exclusion for the digitally excluded. Financially well-educated consumers are more likely to be included in the banking system, as they are better able to understand and use financial information to make financial decisions, and to choose products and services that are more appropriate to their needs and risk profile.

The Pendampingan Inklusi Finansial Melalui Aplikasi Sikapi Uangmu pada UMKM Eks-PMI Kabar Bumi Ponorogo

The understanding of MSME actors who are former migrant workers who are members of the "KABAR BUMI PONOROGO" organization regarding the availability of access to various institutions, formal financial products, and services or what is usually called financial inclusion is still very low. In general, they have difficulty understanding financial inclusion well, so they cannot access the use of financial products and services in the form of loans, insurance, savings, mobile banking, electronic money, or various capital that can be accessed at any time. This lack of knowledge means that their businesses are often hampered because they use conventional systems. The Financial Services Authority (OJK) has also issued an Android-based application that provides a complete review of financial inclusion. Unfortunately, this application has not been able to reach MSME owners who are former migrant workers in Ponorogo. Based on this problem, the community service team provided financial inclusion assistance through the Ilmu Uangmu application to ex-PMI KABAR BUMI PONOROGO MSMEs. This activity aims to build business owners' insight into financial inclusion, so they can expand their businesses globally. The activity was carried out for two days, starting with giving participants a pretest to do, providing training by accessing the "Sikapi Uangmu" application using the Android they have, giving participants the opportunity to make presentations, giving quizzes, conducting simple financial recording training, finally ends with a post test. The post test results showed significant changes in the participants' scores. This shows that this activity was successful by increasing participants' awareness and understanding regarding financial inclusion.

Financial inclusion as an indicator of national security

The prerequisites for forming national security based on the creation and use of financial inclusion are studied. The essence of the concept of financial inclusion as a component of national security is defined. The expediency of its implementation for all segments of the population is substantiated. It is emphasized that financial inclusion is one of the five directions of the Strategy for the Development of the Financial Sector of Ukraine until 2025 and has specific strategic goals and performance indicators that are related to the level of public confidence in the financial system, the level of financial literacy of the population, and is reflected through the ratio of non-cash card transactions (including P2P) to the total number of transactions and the ratio of cash to GDP. An analysis of the indicators of the level of financial inclusion, which forms the basis of the Strategy for the Development of Ukraine's Financial Sector until 2025, shows that the current values of the indicators do not correspond to their target values. The carried-out analysis made proposing options for developing financial inclusion possible, considering its strategic vectors. In dynamics, the level of public awareness of the use of financial products in Ukraine and other countries worldwide is analyzed. A forecast of the use of financial products by number and type for 2023 – 2024 is made. Positive changes in awareness of financial products in Ukraine have been noted. The expediency and necessity of applying financial inclusion to ensure national security are substantiated. It is noted that the issue of financial inclusion has become especially relevant in the context of the Russian-Ukrainian war. The Top 4 financial products in terms of recognition in the context of age groups are analyzed, and the difference by age categories is reflected. The methods of applying financial inclusion are allocated, and the main aspects that affect it are identified. The main aspects of the information platform on the National Bank of Ukraine website, which is the formation and development of financial literacy among all strata and age categories, are studied. It is noted that financial literacy measures, which the National Bank of Ukraine initiated, require the support of partners. Keywords: financial inclusion, financial service, financial product, financial literacy, protection of user rights, National Bank of Ukraine.

Access and usage of financial products in India: A gender gap analysis

This paper examines the status and determinants of the gender gap in access and usage of financial products and services using 3000 sample of Findex survey data 2021 in India. The results provide evidence to support the gender gap in access and usage of financial services. Particularly they are prominent in access to Mobile Money Accounts (MMAs; 12.03%), debit card (16.27%), and credit card (4.91%). At the same time, a remarkable gender gap was also found in the usage of financial products, specifically in MMA savings (4.25%), deposits (11.52%), withdrawal from accounts (6.83%), debit cards (13.27%) and credit cards (3.94%) usage. Finally, this paper documented the gender gap in access and use of financial products explained by a lower level of education, income, employment, mobile phone ownership, and internet access. The findings suggest that increasing traditional and digital financial literacy and employment opportunity among women are essential. It is also recommended to expand internet connectivity and mobile devices to all socio-economic categories of women.

Sustainability and Performance of Small and Medium Business: the Role of Financial Literature

Purpose: The purpose of this study is to examine the relationship between financial literacy, the sustainability of SMEs and the performance of SMEs. Theoretical framework: SMEs must have resilience and strength in maintaining the continuity of their business which is exposed to risks that must be faced (Kot, 2008 and Southiseng, and Walsh, 2010). Indicators of the success of SMEs can be measured through the business continuity of SMEs and the performance of SMEs. However, this has challenges, especially related to financial literacy in the use of financial products and services both digital and non-digital. Therefore, the study needs to be developed to gather more information about the role of financial literacy to the sustainability of SMEs and the performance of SMEs. Design/methodology/approach: This study uses quantitative research with primary data and secondary data. The population in this study were all SMEs and samples were taken using the saturated sample technique as many as 82 registered SMEs and 50 unregistered SMEs. The data analysis technique in this study used Structural Equation Modeling (SEM) with SmartPLS. Findings: The results of this study indicate the contribution of financial literacy to the SMES’s sustainability and performance. Financial literacy has a positive effect on the sustainability of SMEs. Research also shows that financial literacy has a positive effect on the performance of SMEs. Research, Practical & Social implications: The future research should highlight other essential factors that could contribute the SME’s sustainability and performance such as halal branding and label as trending factors nowadays. Originality/value: The results indicate the importance role of financial literacy on the sustainability and performance of SMEs especially SME’s financial management would determine the successful of SME’s livelihood.

Financial Inclusion and Income Inequality in Sub-Saharan Africa: Taking Socio-Cultural Particularities into Account

AbstractAccording to the United Nations 2030 Agenda for Sustainable Development, financial inclusion has a crucial role to play in achieving sustainable development goals in this case, reducing inequalities and reducing poverty. Certain cultures can be at the root of financial system imperfections and therefore influence financial inclusion and its effect on income inequality. This work analyzes the effect of financial inclusion on income inequalities in sub-Saharan African countries, taking into account cultural particularities. The data cover the period from 2002 to 2015 and are analyzed by the dynamic panel method generalized method of moments (GMM). Our overall sample is made up of 27 countries of sub-Saharan Africa grouped into 4 sub-groups: countries with predominantly Christian obedience, countries with obedience dominated by Islam, countries with French as the official language, and countries with English as official language. The first two are distinguished by the fact that Islam forbids interest-bearing savings and loans. The latter two have known different colonial systems which have forged their attitude to public life differently. Our results show that financial inclusion contributes to reducing income inequality in all the SSA countries considered, and also in the Christian-dominated and French-speaking countries. We found no effect of financial inclusion in Islamic-dominated and English-speaking countries. Similarly, we found evidence of an inverted U-shaped relationship in all the Sub-Saharan African countries considered and in Christian-dominated countries only. These results suggest on the one hand that the socio-cultural aspect has an influence on the relationship between financial inclusion and income inequality and the other hand that financial inclusion may be essential to reduce income inequality in SSA countries, but that it is important to tailor it taking into account the cultural, religious, political, institutional, and structural specificities of each country’s economy to have even more significant effects. Given this interference of socio-cultural and political factors on financial inclusion and its effect on income inequality, in addition to ensuring an effective regulatory system and a sound institutional framework, financial and public authorities should capitalize on the cultural and religious fiber to raise awareness on the use of financial products and services in order to improve financial access and its effect on wealth redistribution.

The effect of financial inclusion on multidimensional poverty: the case of Vietnam

Poverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect of financial inclusion on income poverty reduction. There are relatively few studies evaluating the impact of financial inclusion, especially in terms of household use of financial products and services, on multidimensional poverty reduction. This study uses a multivariate probit model with a dataset from Vietnam to estimate the effect of financial inclusion in terms of household use of financial products and services and other factors on multidimensional poverty. The results show that financial inclusion reduces multidimensional poverty. Specifically, households owning bank accounts, having savings at banks, using debit cards, credit cards, or investing in stocks or bonds are less likely to fall into multidimensional poverty. Based on the findings, we provide several recommendations for policymakers to increase the level of households’ use of financial products and services.

DİJİTAL VERİNİN FİNANSALLAŞMASI VE PLATFORM KAPİTALİZMİ

Bu çalışmada finansallaşma olgusu, dijital verinin metalaştığı kapitalizmin güncel biçimlerinden biri olan platform kapitalizmi çerçevesinde tartışılmaktadır. Finansallaşma, literatürde çoğunlukla yeni bir birikim rejimi, şirket yönetimlerinin amaç fonksiyonlarının değişmesi ve gündelik hayatın finansallaşması şeklinde üç farklı yaklaşımla ele alınmaktadır. Bu makalede, bu sınıflandırmaya dördüncü bir ayrım eklemeyi öneriyoruz: dijital finansallaşma. Dijital finansallaşma, bireylerin dijital verileri aracılığıyla gözetimi ve bu yolla kâr elde edilmesine olanak sağlayan melez bir alan yaratmak için dijital ve finansal alanların bütünleşmesini ifade eder. Çalışmanın amacı geleneksel finansallaşma argümanlarının, dijital finansallaşma bağlamında geçerliliğini sorgulamak ve finansallaşma analizini dijital veriyi kapsayacak biçimde genişletmektir. Çalışmanın bulgularına göre, BigTech ve FinTech şirketleri bütünleşik bir dijital-finansal alan oluşturarak dijital veriyi finansallaştırmaktadır. Veriye dayalı finansal kapsayıcılık faaliyetleri, finansın demokratikleşmesi söylemi altında, finansal ürün kullanımını dünya nüfusunun büyük bir kesimine yaymayı amaçlar. Sonuç olarak dijital finansallaşma “bankasız nüfus” dahil olmak üzere geniş kesimlere platformlar aracılığıyla erişim sağlayarak finansallaşmayı genişletmekte ve derinleştirmektedir. Platform kapitalizmi altında geliştirilen iş modellerinin finansallaşma bağlantıları dikkate alındığında, dijital veriye dayalı yeni “sömürü” mekanizmaları oluşabilir

Effect of Financial Inclussion and Social Influence on Community Interest in Using Financial Technology

The development of world technology, especially in Indonesia, is progressing. Many new and innovative creative ideas have emerged in the field of digital technology. Currently, in the financial sector, various technological innovations have emerged that make it easier to carry out financial transactions and other financial activities carried out by the general public, commonly known as FinTech, or Financial Technology. FinTech is a very potential opportunity during COVID-19. However, there are still many people who do not understand the concept of financial inclusion, for example in the use of financial products. The Yogyakarta Financial Inclusion Index is a composite of 76.12%, conventional 75.85%, and Sharia 8.92%. Increasing financial inclusion through fintech cannot be separated from the social influence that accompanies every trend in society in the use of financial services. The type of research used is quantitative. The purpose of this study was to determine whether there is an influence of financial inclusion and social influence on people's interest in using FinTech in the special region of Yogyakarta. primary data source using a primary data questionnaire with 114 respondents and e-wallet users. The results of this study indicate the influence of financial inclusion and social influence on interest in using FinTech. Because of how easy it is for people to get to and use FinTech, like e-wallets, to make transactions easier.

Determination Of Technology-Based Accounting Curriculum Through Financial Literacy

Purpose This study aims to determine which factors can affect financial literacy as the basis for developing a technology-based accounting curriculum at the Accounting Department, Faculty of Economics and Business, Mulawarman University. Design/methodology/approach This research is a quantitative study using primary data obtained through a questionnaire filled out by 100 respondents. The data is then processed using Smart-PLS. Findings The results showed that financial behavior and financial attitudes had a positive effect on financial literacy, while financial technology did not affect financial literacy. This proves that the behavior and attitudes shown by the Faculty of Economics and Business students can increase student curiosity regarding financial management and understanding of financial instruments to improve student financial literacy. In addition, from the respondents' answers, it can also be seen that the literacy level of students is at a sufficient literate level, which means that students have a good understanding of financial management but are still unable to maximize the use of financial products and services. The lack of students' use of financial technology is evidence of this. Practical implications The results of this research contribute to the Accounting Department needing to add material about the benefits and functions of financial technology in financial management to improve student competence in the industrial era 4.0. Originality/value This paper presents financial literacy as the basis for improving a technology-based curriculum that is currently indispensable in accounting education. Keywords : Financial Literacy; Financial Technology; Financial Attitude; Accounting Curriculum Paper-type Case study

The Affecting factor of Personal Financial Management Behavior

The development of financial products continues to grow, and users of financial products are increasing yearly. However, the increasing use of financial products is not matched by their good financial attitudes and knowledge. It can be seen from the high financial inclusion of the Indonesian people but their low literacy level. The literacy level is measured using attitude and behavior indicators in this case. This study examines whether financial knowledge, attitude, and locus of control affect the financial management behavior of employees in West Jakarta. This study used a descriptive research design, and data collection was carried out by distributing questionnaires to 57 respondents according to the criteria. Data processing is done using PLS Algorithm on Smart-PLS. This study is to examine whether there is an influence of financial attitude, financial knowledge, and locus of control on the financial management behavior of employees in West Jakarta.

Does financial inclusion affect economic growth A global perspective

This study aims to examine the impact of financial inclusion on economic growth in four different income groups from 2005-2020. A multidimensional index of financial inclusion was developed, and then this newly constructed index has been used to examine the effect of FI on economic growth. Financial inclusion indicators investigated in the present study include domestic credit from financial sector and private sector, number of commercial banks and ATMs per 1,000 km2 and 100,000 adults, borrowers and depositors from commercial bank. Gross domestic product per capita (GDPPC) is used as a measure of economic growth. In this study Stata software has been used to assess the impact of variables. According to the findings, in countries with low financial inclusion index (FII) and low income, financial inclusion has a positive significant impact on economic growth. Policymakers should design initiatives that increase access to and use of financial products.

What drive gender gap in financial inclusion? Evidence from Cameroon

AbstractThis article analyses the drivers of the gender gap in financial inclusion in Cameroon, using Finscope 2017 data and Fairlie's decomposition method. We analyse six distinct financial inclusion variables captured by access to and use of financial inclusion products and services. The results of the decomposition show that there is a gap in all indicators of access to and use of financial products and services in favour of men. The results also show that the largest contributor to the gender gap in access to financial products and services is income, with a contribution of more than 50%. The largest contributor to the gender gap in the use of financial products and services is education, with an average contribution of more than 35%. Based on these results, policy‐makers in Cameroon must work towards an equalization of access to education between men and women, in order to promote greater economic participation of women as well as more inclusive development.

Usabilidad de los productos financieros en empresarios de las MIPYMES en México

Nowadays, companies require the use of financial products that support their fluidity to improve their daily operations, that’s why the aim of this article is to explain the usability of financial products in Micro, Small and Medium Enterprises (MSMEs) in Tierra Blanca, Veracruz, Mexico, for the period of November 2019. The methodology has a qualitative approach, using the Delphi method and a sample by cases. The results cited are: the deficient use of financial products, restricted access to credit, due to the policies that each institution pursues, a lack of awareness of the advantages offered by POS and insurance as the least used product. Among the conclusions reached, it is possible to mention that there is a high rate of ignorance of the advantages offered by financial products, there is no real connection between businessmen and bankers, and there is a lack of education and financial culture, it also produces a paradigmatic paralysis that causes fear of migrating to the use of financial products. The study shows the opening of new lines of research in matters of culture and financial education, considering that the existing literature is based on access to financial products and not on the actual use that entrepreneurs make once they obtain them.