scholarly journals An Empirical Analysis of the Impact of Agency Banking on Financial Inclusion in Benue State, Nigeria: Implications for Economic Activities

2022 ◽  
Vol 14 (2) ◽  
pp. 75
Author(s):  
David Terfa Akighir ◽  
Tyagher Margaret ◽  
Jacob Terungwa Tyagher ◽  
Tordue Emmanuel Kpoghul
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Survey Design ◽  
Secondary Data ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
The Impact

Twelve (12) out of the Twenty-three (23) local government areas (LGAs) in Benue State do not have the presence of banks over a long period of time. This situation has deprived the inhabitants of these LGAs of access to formal financial services until the advent of agency banking. This study therefore, investigates the impact of agency banking on financial inclusion and economic activities in Benue State focusing on the agency banking activities of First Bank Ltd. The study is anchored on the agency theory and it used a survey design. The study has utilized both primary and secondary data that were analyzed using descriptive statistical tools and structural equation models. Findings of the study have revealed that agency banking activities of First Bank Ltd have immensely enhanced financial inclusion and economic activities in Benue State. However, challenges such as shortages of cash, security problems, network failures, and lack of financial literacy are militating against the smooth operations of the agency banking in the State. On the basis of these findings, the study has recommended among others that, other banks operating in the State should be encouraged to venture into agency banking in the state so as to have a wider coverage of agency banking in the State. Also, government should provide security and partner with the private sector to provide national carrier communication network system to overcome the network failure challenge. Finally, banks should intensify efforts to educate the masses about the validity and potency of agency banking.

Financial self-efficacy: a mediator in advancing financial inclusion

2017 ◽  
Vol 36 (2) ◽  
pp. 128-149 ◽  
Author(s):  
Rachel Mindra ◽  
Musa Moya
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Mediation Effects ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating effect of financial self-efficacy (FSE) on the relationship between financial attitude, financial literacy and financial inclusion (FI) among individuals in Uganda. Design/methodology/approach Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. Using SPSS and AMOS™ 21, structural equation models and bootstrapping methods were used to establish the hypothesized relationships and mediation effects between financial attitude, financial literacy and FI. Findings The results suggested FSE as a mediator of the relationship between financial attitude, financial literacy and FI. Further, there was a significant and insignificant relationship between financial literacy, financial attitude and FI, respectively. Research limitations/implications The study was assessed using both potential and actual consumers of financial services collectively. However if separately assessed, possibly there would be a variation in perceptions or behavioural responses towards FI. Practical implications There is a need to develop and sustain high levels of financial confidence among individuals to enable them use formal financial services. Social implications Possession of financial knowledge, skills, an evaluative judgement with high levels of financial confidence enable individuals make financial decisions that improve their integration into the formal financial system and improved welfare. Originality/value The results contribute towards the limited empirical and theoretical evidence regarding the mediating role of FSE in explaining the financial behaviour.

scholarly journals Agent Banking And Poverty Reduction In Benue State, Nigeria

2020 ◽  
Vol 7 (5) ◽  
pp. 213-229
Author(s):  
David Terfa Akighir ◽  
T. Jacob Tyagher ◽  
Aaron Ateata
Keyword(s):  
Local Government ◽  
Rural Areas ◽  
Financial Literacy ◽  
Rural Population ◽  
Poverty Reduction ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
Logit Regression Model ◽  
The Impact

The study investigated the impact of agent banking on poverty reduction in Benue State, Nigeria. The study is hinged on the agency theory, risk management theory, the regulatory dialectic theory and the basic needs theory. Focusing on the agent banking activities of the First bank PLC, the study used the Taro Yammene’s formula to select 199 agents for investigation. Questionnaire was used for data collection but only 185 copies of the questionnaire were retrieved for analysis. The study employed descriptive tools such as tables and percentages and paired t-test as well as Foster, Greer and Thornbecke (FGT) index. Also, a logit regression model was employed to ascertain whether or not agent bank has the probability of reducing poverty in Benue State. The study found that engaging in agent banking has the probability of reducing poverty in Benue State which is typically an agrarian state with high poverty incidence among highly unbanked population. Agent banking in this unbanked State where only 11 local government areas out of 23 local government areas have the presence of banks has the potential of increasing financial inclusion and enhancing financial literacy. With the presence of agent banking in the state, it will enhance business sustainability and facilitate financial transactions. These will increase economic activities and increase employments and reduce poverty. Given the potentials of agent banking for socio-economic development in the state, it is recommended that financial literacy awareness should be created so that rural population who have long lived unbanked to accept banking services via the agent banking. Also, banks operating in the state should leverage on the opportunity of agent banking to penetrate the rural population with a view to achieving financial inclusion in line with the CBN’s revived National Financial Inclusion Strategy (NFIS) which places implementation focus on women, rural areas, youth, Northern Nigeria and MSMEs to achieve 95% financial inclusion rate by 2024.

scholarly journals PLANNING OF PERSONAL FINANCE IN A CRISIS PERIOD

2021 ◽  
Vol 71 (3) ◽  
Author(s):  
Iryna Borysova
Keyword(s):  
Financial Market ◽  
Financial Literacy ◽  
Financial Services ◽  
State Level ◽  
Personal Finance ◽  
The State ◽  
Financial Inclusion ◽  
Modern World ◽  
Personal Finances ◽  
The Impact

In this publication we provide tips to help strengthen personal finances in a crisis situations. It should be noted that as part of state programs aimed at increasing financial literacy, it is especially important to monitor the literacy and quality control of financial activity of the population in terms of combating various forms of financial fraud targeting people’s savings. Improving financial literacy of the population is one of the main ways to improve the management of personal finances, which does not require significant costs. We analyzed the research of both foreign and domestic scientists on these matters. Household financial planning should begin with the planning and compilation of a personal budget or a family budget. Optimization of personal expenses after their detailed analysis is rationalization. Rationalization of personal expenses should be carried out on the basis of research of current and perspective needs of the individual to define the unnecessary expenses and search for the ways to save purchasing certain groups of goods or services. Helping to control and eliminate emotional purchases, thereby minimizing the impact of inflation on own costs. Low financial literacy of consumers of retail financial services, the presence of asymmetric information in the relationship between providers and consumers of the services in the financial market create favorable conditions for various abuses and financial crimes. The concept of financial inclusion is considered, which in our opinion is a driver of economic growth and an important factor of social equality in the modern world. Central banks and other financial market regulators, international organizations, and other market players have emphasized the importance of financial inclusion in recent decades. We have selected a list of basic tips from financial advisors on managing and planning personal finances. In Ukraine, more than a third of the population remains outside the financial system. This indicates their separation from the economy of the state and society as a whole, lower level of efficiency of money management and financial security. The vocation of financial scientists is to bring to the public the basics of financial awareness and help solve many issues that arise, both in personal finance and at the state level.

scholarly journals Impact of Financial Inclusion on Income Generation and Savings in Mountain Regions: A Case Study of Rural Households of Uttarakhand

2021 ◽  
Vol 16 (1) ◽  
Author(s):  
Prashant Kandari ◽  
Kusum Dobriyal ◽  
Uma Bahuguna
Keyword(s):  
Positive Impact ◽  
The State ◽  
Financial Inclusion ◽  
Income Generation ◽  
Mountain Regions ◽  
Economic Activities ◽  
Long Run ◽  
Economically Deprived ◽  
Caste Groups ◽  
The Impact

The major drive for financial inclusion started in the country mainly from year 2014 after the launch of Jan Dhan Yojana which focused mainly towards empowering dwellers of resource deprived and underdeveloped regions. Economic empowerment of such deprived sections is possible only when they are provided with ample opportunities for income generation in various economic activities. The prominent aim of financial inclusion is to facilitate residents of such deprived regions by reaching out to them and delivering them facilities so that they could identify and work on their capabilities to generate employment and income earning opportunities. The economically deprived and vulnerable population, through it, could be secured, from falling in the trap of poor informal level activities. These low-level informal activities are not suitable for them and for their overall development in the long run. Financial inclusion thus helps them in getting out of the poverty trap and hence acts as one of the important facility or an instrument which could help in a larger achievement of the goal of the development of residents of such deprived regions. Keeping these aspects in consideration the present study aims to understand the impact of financial inclusion on two important variables i.e. income generation and enhancement of savings among the residents of Mountain regions of the state which also represents the deprived and underdeveloped regions. The study was conducted in three mountain districts of the state and the results of the study shows that financial inclusion has helped in income generation in these regions but the impact of it has been different among different caste categories. Further the study shows that financial inclusion worked to enhance the income generation with larger benefits to households having higher levels of income. The study also depicts the positive impact of financial inclusion on savings but with noticeable variations in its impact on different caste groups.

scholarly journals Poverty Alleviation Fund in Financial Inclusions of Nepal

2019 ◽  
Vol 2 (2) ◽  
pp. 90-98
Author(s):  
Nahakul K.C.
Keyword(s):  
New Product Development ◽  
Financial Literacy ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Secondary Data ◽  
Holistic Approach ◽  
Financial Education ◽  
Financial Inclusion ◽  
Services Research ◽  
Government Organizations

This research was an attempt to take a deeper look at people’s experience of existing financial services and their providers. In addition, it aimed to identify definitive indicators that would help to create a roadmap for the delivery of effective financial services in Nepal. The study emphasized that ensuring financial inclusion is an arduous task and requires a holistic approach encompassing strategies for awareness raising, financial education, technical advice on different dimensions of money management, debt counseling, saving mobilization, provision of affordable credit services, research and development. In order to promote financial inclusion, there is a need to develop and apply specific strategies to expand the outreach of their services using combinations of lending methodologies, market led approaches to new product development, fostering linkages with local communities and promoting the use of technologies. This paper is basically descriptive and analytical in nature and based on a number of policy models and provisions formulated in recent years for promoting financial inclusion in Nepal. Secondary data is used, drawn primarily from, Poverty Alleviation Fund, Department of Co-operatives and different departments. Micro finance institutions should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.

Financial self-efficacy: a determinant of financial inclusion

2017 ◽  
Vol 35 (3) ◽  
pp. 338-353 ◽  
Author(s):  
Rachel Mindra ◽  
Musa Moya ◽  
Linda Tia Zuze ◽  
Odongo Kodongo
Keyword(s):  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Service Providers ◽  
Financial Service ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the relationship between financial self-efficacy (FSE) and financial inclusion (FI) among individual financial consumers in Uganda. Design/methodology/approach Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. SPSS and AMOS™ 21, regression analysis and structural equation models were used to establish the hypothesized relationship between FSE and FI. Findings The results suggest a strong positive and significant relationship between FSE and FI. The results further suggest that other variables which were controlled for, such as age and gender, had significant influence on an individual’s usage of formal financial services. Research limitations/implications The study was assessed using both potential and actual consumers of financial services collectively. However, if separately assessed, possibly there would be a variation in behavioral responses toward FI. Practical implications Formal financial service providers need to enhance individuals’ levels of confidence in management of finances and utilization of formal financial products and services, so that the financial consumers can realize the changes in financial behavior and consequently FI. Social implications The enhancement of individuals’ level of confidence in evaluating the available financial service options will guide them to take financial decisions that will improve their livelihood. Originality/value The results contribute toward the limited empirical and theoretical evidence for FSE and FI from a behavioral demand-side perspective.

scholarly journals The Impact of Transformation of Social Assistance on Financial Inclusion and Welfare of Beneficiary Families

2021 ◽  
Vol 16 (1) ◽  
Author(s):  
Arief Fajar Firmansyah ◽  
Suharno Suharno ◽  
Arintoko Arintoko
Keyword(s):  
Financial Services ◽  
Social Assistance ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Primary Data ◽  
Beneficiary Community ◽  
Cash Transaction ◽  
Representative Office ◽  
The Impact ◽  
The City

This study is based on the transformation of the distribution of cash social assistance into non-cash in the City of Tegal. The non-cash distribution is by using a banking account that has a combo card facility, which is a multi-function card that can be used as an ATM card as well as disbursement of social assistance. There is a slice of the objectives of the non-cash transaction referred to as an alternative to accelerate the increase in financial inclusion of the Indonesian population as stated in the National Strategy for Financial Inclusion with the financial inclusion index indicator. This study aims to determine the impact of the transformation of the distribution of social assistance on financial inclusion in Tegal City and the welfare of beneficiary families (KPM). Primary data were collected from questionnaires that have been filled in by KPM and secondary data were obtained from the Central Bureau of Statistics and the Representative Office of Bank Indonesia Tegal. The analytical tool used is a quantitative approach to KPM's response to the distribution of non-cash social assistance. As supporting data, in the problem of financial inclusion, analysis tools are used by qualitatively comparing financial inclusion that is generated as a result of the implementation of the distribution of non-cash social assistance to existing financial inclusion. The analysis shows that the acceptance and perception of KPM supports the transformation of non-cash social assistance distribution, this is supported by KPM's interest in using combo cards as a means of saving. On the other hand, the transformation of the distribution of social assistance to non-cash contributes to financial inclusion in the city of Tegal, namely the Agent Laku Pandai (LKD) contributing 75.20% to banking financial services in Tegal City. From the 4 Welfare Indicator Classifications, it is found that the welfare of KPM has experienced changes in welfare after receiving non-cash social assistance and has improved the welfare of the beneficiary community (KPM).Keywords : Non-Cash Social Assistance, PKH, BPNT

The effect of financial literacy and gender on retirement planning among young adults

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osvaldo García Mata
Keyword(s):  
Young Adults ◽  
Financial Literacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Retirement Planning ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Moderator Variable ◽  
Content Type ◽  
And Gender

PurposeThe purpose of this paper is to analyze financial literacy's effect on retirement planning among young adults in Mexico, with gender as a moderator variable. Planning refers to the actual or intended implementation of several retirement strategies: private pension funds, investing in assets, government subsidies and family assistance.Design/methodology/approachThe article's methodology is quantitative, empirical and cross-sectional. Ajzen's theory of planned behavior (1991) works as the theoretical framework to examine planning for retirement intentions determined by individuals' financial inclusion, attitudes, knowledge, behavior, occupation and family traits. The methodology follows generalized structural equation models (GSEM) with logistic regression basis, constructed with data from the National Survey on Financial Inclusion 2018.FindingsResults confirm that the most financially knowledgeable individuals have lesser intentions to pursue passive strategies, while financial behavior and inclusion associate with actively planning. Gender plays a fundamental role in retirement planning too.Research limitations/implicationsObservations for several years are necessary to effectuate longitudinal analysis. Further research should include a more in-depth study of strategy choice triggers and policy impact on retirement planning.Social implicationsFindings can be useful to public and private institutions focused on saving, investment and retirement, especially in economies comparable to Mexico's. Avoiding the higher social costs associated with poor retirement planning depends on timely decision-making.Originality/valueThis study goes beyond the traditional pension fund strategy to analyze other options. It delivers information about young people's long-term financial plans in Mexico concerning financial literacy and gender.

Implementation of Inclusive Finance in Empowering Micro, Small and Medium Enterprises (UMKM) at Micro Waqf Banks

2021 ◽  
Vol 5 (1) ◽  
pp. 82
Author(s):  
Rahma Jaziyatul Chikmiyah
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Qualitative Method ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
National Strategy ◽  
Classic Problem ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

<p><em>This study aimed to analyze the impact of the implementation of financial inclusion at Al-Fithrah Micro Waqf Bank regarding the empowerment of Empowering Micro, Small and Medium Enterprises (MSME). Even though MSME sectors have become a central foundation for the economy, the capital limitation is still considered a classic problem. It influences the government to release National Strategy Financial Inclusion to provide financial services that all levels of society can access. The indicators inclusive financial consists of access, usage and quality to realize empowerment through financing and assistance. This research used a descriptive qualitative method, and data were collected through interviews, observations, and documentation. The results showed that the financial inclusion component had been implemented but still has many potentials to be maximized. The components of access and usage have been appropriately implemented in terms of physical aspects and prices that are easily accessible to customers. These two components have an impact on increasing customer Islamic financial literacy. In the quality component, product variations are expected to fulfill the different business needs of customers. Meanwhile, financing has not significantly impacted fulfilling the welfare component’s capital needs  because the nominal value is too small. Furthermore, business assistance has a more significant impact on improving the business and spiritual aspects</em><em> of clients</em><em>.</em></p><p align="left"> </p><p>Penelitian ini bertujuan untuk menganalisis dampak penerapan keuangan inklusif pada Bank Wakaf Mikro Al-Fithrah terhadap pemberdayaan UMKM di sekitarnya. Meskipun sektor UMKM telah menjadi fondasi yang cukup sentral bagi perekonomian, keterbatasan permodalan masih menjadi masalah klasik UMKM. Hal ini mendorong pemerintah untuk mengeluarkan Strategi Nasional Keuangan Inklusif yang bertujuan untuk memberikan layanan keuangan yang dapat diakses seluruh lapisan masyarakat. Indikator keuangan inklusif yang terdiri dari akses, penggunaan dan kualitas diterapkan untuk mewujudkan pemberdayaan UMKM melalui pembiayaan dan pendampingan. Penelitian ini menggunakan metode deskriptif kualitatif melalui pengumpulan data wawancara, observasi, dan dokumentasi. Hasil penelitian menunjukkan bahwa komponen keuangan inklusif telah diimplementasikan namun masih berpotensi untuk dimaksimalkan. Komponen akses dan penggunaan sudah terlaksana dengan baik dilihat dari segi fisik dan harga yang mudah dijangkau nasabah. Kedua komponen tersebut berdampak pada peningkatan literasi keuangan syariah nasabah. Pada komponen kualitas, variasi produk diharapkan dapat memenuhi kebutuhan modal nasabah yang berbeda. Sedangkan untuk komponen kesejahteraan, pembiayaan belum memberikan pengaruh signifikan untuk memenuhi kebutuhan permodalan karena nilai nominal yang terlalu kecil. Selain itu, program pendampingan usaha (HALMI) memiliki dampak yang lebih signifikan terhadap peningkatan usaha dan spiritual pelanggan.</p>

scholarly journals OPTIMALISASI LAKU PANDAI BERBASIS MASJID GUNA LITERASI DAN INKLUSI KEUANGAN SYARIAH BERKELANJUTAN

2018 ◽  
Vol 3 (2) ◽  
pp. 106
Author(s):  
Syah Amelia Manggala Putri ◽  
Eka Jati Rahayu Firmansyah
Keyword(s):  
Qualitative Research ◽  
Grounded Theory ◽  
Financial Literacy ◽  
Financial Services ◽  
Spiritual Development ◽  
Financial Inclusion ◽  
The Other ◽  
Religious Leaders ◽  
Economic Activities ◽  
Islamic Studies

Recent development of Shari’a banking is quite satisfying. In 2016, shari’a banking has reported the asset as much as 365.6 trillion rupiahs. On the other hands, the index of shari’a financial literacy and inclusion has not been optimum that is only 8.11% and 11.06% respectively. Therefore, a new innovation is needed to increase the index of literacy and inclusion as a challenge in shari’a banking in Indonesia. As a response, Indonesia Financial Services Authority (OJK) has launched a new regulation of Non-Office Financial Services in the Framework of Inclusive Finance (Laku Pandai) which is expected to increase the index of shari’a financial inclusion. In the application, shari’a finance, which is based on the Islamic laws, should get itself closer to the centre of Islamic spiritual development, namely mosques. A mosque, however, does not only function as a place for developing spirituality but also plays an important role in improving economic activities. Hence, this study is conducted by qualitative research applying the method of Grounded Theory. The synergy between the Laku Pandai program and mosques is performed by involving ummah—the community—as the agent of Laku Pandai whose duty is to assist the community in getting suitable shari’a products and services. In this case, the products of Laku Pandai can be used in worshipping activities (qurban, umroh, hajj, etc), phone-credit recharging, and micro-shari’a financing. The application of this synergy, however, will make the products and services of shari’a finance accessible to the community and thus increase the index of shari’a financial inclusion at once.  The mosque-based education about shari’a finance is obtained by Islamic studies, lectures, and socialization initiated by involved parties, religious leaders and the society, so that it will also increase the index of shari’a financial literacy.Keywords: Laku Pandai, literacy, inclusion, shari’a finance, mosque

Sign in / Sign up

Export Citation Format

Share Document