Utilization Of Financial Services Research Articles

FinTech Services Adoption in Greece: The Roles of Trust, Government Support, and Technology Acceptance Factors

Financial technology or FinTech is a term that has arisen in recent years; it refers to innovative technologies designed to enhance and automate the provision and utilization of financial services. Its solutions aim to simplify conventional financial procedures, boost automation, lower expenses, and deliver personalized and user-friendly experiences for both businesses and consumers. But this question remains: what drives users to adopt such services and how are they perceived by the general public? In our study, a quantitative non-experimental correlational methodology in the form of an online survey was utilized to study the Greek citizens’ behavioral intentions regarding the utilization of FinTech services. Based on the answers of 348 respondents, structural equation modeling was performed to evaluate the theoretical model, which included technology acceptance factors. Unlike conventional models that primarily relate user acceptance to adoption, our research goes beyond these models by expanding on the TAM model via an exploration of the role of trust and the influence of government support on user trust and perceived effort and an examination of how these, in turn, impact the FinTech services adoption. In our context, government support refers to the regulatory frameworks, policies, and endorsements provided by governmental bodies. The results indicated that all the aspects of this study related to trust and user acceptance (effort expectancy and performance expectancy) revealed a significant and positive relationship with FinTech services adoption and can be predictive factors of citizens’ future intentions to use FinTech services. This study also verified that trust in FinTech services mediates the relationship between government support and FinTech services adoption. We place emphasis on the intricate yet complex decision-making process in technology adoption, particularly in the field of FinTech, by exploring the intertwined relationships of trust, government support, and technology acceptance factors; the findings offer valuable insights for policymakers and industry practitioners.

Measuring Financial Inclusion Index for Developing Countries

This research focuses on the multifaceted realm of financial inclusion within Developing Countries. It unfolds a meticulous exploration by formulating a financial inclusion index based on data extracted from a sample comprising 75 Developing Countries, spanning the period from 2010 to 2018. The index's creation comprises of two distinct stages. In stage one, a principal component analysis is applied to derive sub-indices encapsulating the dimensions of access, utilization of financial services, technological advancements, and infrastructure, drawing from an array of 24 financial indicators. Subsequently, the second stage normalizes values within each dimension, culminating in an overall index through the application of the Euclidean Formula. The findings of this study emphasized the pivotal role of a National Financial Inclusion Strategy in enhancing financial inclusion in each respective country. Customization of these strategies to align with specific economic goals of each nation is paramount. Central to these objectives are primary priorities, which diverge among countries. Notably, countries like Romania, Serbia, and Mauritius place a premium on fostering financial literacy, while others such as Pakistan, Costa Rica, Rwanda, and Guinea emphasize the growth of Small and Medium Enterprises. In contrast, nations like Guatemala, Mauritania, Thailand, and Ukraine concentrate on expanding their financial networks. Furthermore, countries grappling with low levels of financial inclusion attribute this challenge to factors such as deficient financial literacy, the absence of a well-defined financial inclusion strategy, financial constraints, a preference for traditional financial services, and limited awareness surrounding digital innovations. Conversely, nations boasting moderate levels of financial inclusion, yet not progressing towards higher levels, point to the dearth of technological innovation and restricted prudential measures as pivotal stumbling blocks. This comprehensive analysis underscores the necessity of dynamic strategies tailored to individual countries to achieve robust financial inclusion on a global scale.

Nexus between financial inclusion and natural resource management: How human development affects the sustainability practices

There is increasing apprehension surrounding the sustainable governance of natural resources in South Asian nations, where the economy's progress is significantly dependent on these resources. Financial inclusion is a vital determinant in promoting sustainable practices as it pertains to the accessibility and utilization of financial services by all population sectors. Moreover, the field of human development, which encompasses various indicators, including education, healthcare, and living standards, exerts a substantial influence on the formation of societal behaviour and attitudes towards the conservation of resources. This research investigates the correlation between financial inclusion, natural resource management, and human development in South Asian nations from 2008 to 2020. Panel data modelling is used in this study to examine the relationship between the abovementioned variables and evaluate human development's influence on sustainability practices. This study utilizes panel data analysis to examine the complex association between financial inclusion and natural resource management. This study examines the relationship between different levels of human development and adopting sustainable practices within the region. Using the panel data framework facilitates the analysis of both idiosyncratic country‐specific effects and shared patterns observed among the South Asian countries under consideration. The findings of this research offer valuable perspectives on the intricate relationship between financial inclusion, human development, and natural resource management. The results of this study make a valuable contribution to the current body of literature by emphasizing the importance of inclusive financial systems in fostering sustainable practices. Furthermore, these findings provide insight into the influence of human development on the formation of individuals' attitudes and behaviours about the conservation of resources. The implications of these findings are relevant for policymakers and stakeholders who aim to improve sustainability initiatives and promote inclusive economic development in South Asian nations.

Unlocking the Path to Inclusive Growth: Examining the Impact of Financial Inclusion in Developing Economies

This empirical research study explores the influence of financial inclusion (FI) on long-term economic growth within a dataset comprising 50 developing countries over the period from 2010 to 2022. Sustainable per capita economic growth, defined as an annual growth rate of a minimum of 7%, serves as a representative measure for sustained economic growth, while the growth rate of branches of bank and ATMs per 0.1 million people functions as a proxy for FI. Employing panel data models, our findings suggest a positive correlation between FI and sustained economic growth, although this relationship does not attain statistical significance. We also employ robust endogeneity-consistent estimation techniques, including the two-step system and differenced Generalized Method of Moments (GMM) approaches, and our results consistently indicate that financial inclusion, as measured by bank branches and ATM outreach, does not appear to be a significant driver of economic growth. Consequently, central banks and governments are encouraged to formulate and implement more effective strategies and initiatives aimed at enabling greater access and utilization of financial services among unbanked populations, with the potential to yield tangible benefits from financial inclusion and consequently foster higher growth rates in developing nations.

Access and utilization of financial services among poor HIV-impacted children and families in Uganda

With high prevalence of both poverty and HIV, Sub-Saharan Africa (SSA) has one of the highest numbers of unbanked individuals and families. Although the use of savings products to promote financial inclusion among poor individuals and families has increasingly become more important to policy makers in SSA, limited research exists about the mechanisms and relative importance of institutional and individual-level factors associated with access and utilization of financial services. Using survey data and administrative bank records from a randomized controlled trial in southwestern Uganda, we find that given an opportunity, poor HIV-impacted families and individuals can engage with financial institutions and accumulate savings. Additionally, individual-level factors (e.g., household wealth, child poverty, child work, and attitudes towards savings) were significantly associated with three of the eight outcomes (i.e. saved any money, average monthly total savings, and total number of deposits). Furthermore, institutional-level factors (e.g., access and proximity to the bank, matching incentive rate, and financial education) were associated with all the eight outcomes included in the analysis. Our findings indicate that poor HIV-impacted families can engage with financial institutions and save for their children, if opportunities and institutional arrangements are in place. Findings have implications for financial inclusion policy and programming that target vulnerable youth and families to engage with financial institutions and accumulate savings.

Technological Factors and Utilization of Formal Financial Services by Smallholder Farmers in Kenya

Financing agriculture has become a critical service in enabling the full realization of the agricultural sector’s potential. The allocative efficiency of financial services provided by financial institutions in Africa to the agricultural sector remains low. Further, several institutions aimed at facilitating small holder farmers’ access to credit have failed to deliver it at the right time and in the right proportions. Nevertheless, in the advent of new financial regimes and innovations such as financial technology, the uptake and utilization of financial services among the small holder farmers in Kenya was expected to increase. This, however, has not been the case. Hence this study which sought to determine the influence of technological factors on the utilization of formal financial services among small holder farmers. The target population for this study was small holder farmers from Nakuru, Busia and Kirinyaga Counties in Kenya. A study sample size of 496 small holder farmers was obtained through purposive and stratified random sampling techniques. Data was collected using researcher developed questionnaire. Quantitative data was analyzed using multiple linear regression analysis with the aid of stata. The findings revealed that technological factors did not have any significant effect on utilization of formal financial services among small holder farmers. This was because the farmers were yet to appreciate and fully take advantage of technology enabled financial services to increase their levels of inclusion. From the findings of the study, the recommendations were that at the national level, policy makers should encourage more investment in the digitalization of small scale farming activities so as to encourage more technology adoption.

Informal Financing and the Use of Formal Financial Services among Small Holder Farmers in Kenya

Despite financial inclusion being a key driver of growth and income equality, developing countries continue to have significant proportion of populations without access and usage of basic formal financial services. Instead, most still subscribe to informal financial services, which have low or nonexistent entry barriers. In the context of small holder farmers, informal financial services can moderate their access to finance where there are gaps in the formal financial instrumentation. The present study, therefore, sought to determine the moderating effect of informal financial services on the use of formal financial services among small holder farmers in Kenya. The target population for this study were small holder farmers from Nakuru, Busia, and Kirinyaga counties in Kenya; a sample size of 496 was obtained and selected through purposive and stratified random sampling techniques. Data were collected using copies of a researcher-developed questionnaire and analyzed using multiple linear regression analysis with Stata. The findings reveal that informal financial services did not have a moderating effect on utilization of formal financial services among small holder farmers. The study recommends that the formal financial institutions develop products and work closely with informal financial services to encourage more utilization of financial services.