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1 – 10 of over 46000Purpose: This chapter examines some policy ideas on how to achieve high levels of financial inclusion. It explores policy options that can be used to achieve greater levels of…
Abstract
Purpose: This chapter examines some policy ideas on how to achieve high levels of financial inclusion. It explores policy options that can be used to achieve greater levels of financial inclusion.
Methodology: The chapter uses a discursive approach to analyse the steps to achieving full financial inclusion.
Findings: The chapter offers some suggestions on how to achieve full financial inclusion. They include reducing interest rates, introducing conditional low-interest rates, supporting monetary policies with social security payments, reducing taxes, using targeted government spending, supporting fiscal policies with conditional tax rebate and tax exemptions, financial inclusion–environment decoupling, de-risking the financial system, and ring-fencing banking for the poor.
Originality: This study contributes to the financial inclusion literature by exploring additional ways to achieve high levels of financial inclusion.
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This chapter examines various conditions for optimality in financial inclusion. The optimal level of financial inclusion is achieved when basic financial services are provided to…
Abstract
This chapter examines various conditions for optimality in financial inclusion. The optimal level of financial inclusion is achieved when basic financial services are provided to members of the population at a price that is affordable and that price is also economically sufficient to encourage providers of financial services to provide such financial services on a continual basis. Any level of financial inclusion that does not meet these conditions is sub-optimal and incentive-inefficient both for users and providers of financial services.
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Purpose: This chapter aims to present the arguments for and against central bank digital currency (CBDC) increasing financial inclusion. Financial inclusion is one of the many…
Abstract
Purpose: This chapter aims to present the arguments for and against central bank digital currency (CBDC) increasing financial inclusion. Financial inclusion is one of the many reasons for issuing a CBDC.
Need for the study: There is a need to offer a critical perspective on the proposed financial inclusion benefits of CBDC. This is the first paper to present arguments supporting and statement against CBDC for financial inclusion.
Method: This chapter uses discourse analysis methodology to identify the arguments about CBDC promoting financial inclusion
Findings: The arguments in support of CBDC increasing financial inclusion are that CBDCs can digitise value chains, CBDCs can improve access to digital financial services, CBDCs can help to enlarge the digital economy, CBDCs can enhance the efficiency of digital payments, CBDCs can be used offline when there is no internet coverage, and CBDCs have low transaction costs. Some criticisms are that CBDC may not prioritise financial inclusion, a high price to purchase digital devices for holding a CBDC, non-interest-bearing CBDCs, the strong preference for cash over digital currency, the burdensome identification and regulatory requirements, and the imposition of transaction costs.
Implications: Overall, the arguments presented in this chapter show that there is still disagreement over whether a central bank’s digital currency can increase financial inclusion. Nevertheless, in the light of recent events, many central banks are determined to issue a CBDC for many reasons. Even though CBDCs do not achieve the intended financial inclusion objective, at least the other goals for publishing a CBDC will be performed, such as a significant reduction in cash management costs and the effective conduct of monetary policy.
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Financial inclusion washing has not been considered to be a crime although it should be. This paper aims to present a discussion about financial inclusion washing. It was argued…
Abstract
Purpose
Financial inclusion washing has not been considered to be a crime although it should be. This paper aims to present a discussion about financial inclusion washing. It was argued that financial inclusion washing is the deliberate or unintentional use of exaggerated claims or misleading claims to describe an entity’s commitment to increase the level of financial inclusion.
Design/methodology/approach
This paper used the conceptual discourse analysis methodology.
Findings
This paper showed that many entities are at risk of practicing financial inclusion washing such as international development organizations, aid organizations, government agencies, central banks, financial institutions, financial inclusion support groups and associations, among others. This paper also highlighted the manifestations, motivations and consequences of financial inclusion washing. This paper also identified ways through which entities can avoid financial inclusion washing.
Originality/value
The literature has not examined how exaggerated claims about financial inclusion efforts mislead people.
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Purpose: This conceptual paper aims to identify how financial inclusion relates to sustainability and the level of sustainable development.Methodology: The paper used discourse…
Abstract
Purpose: This conceptual paper aims to identify how financial inclusion relates to sustainability and the level of sustainable development.
Methodology: The paper used discourse analysis to identify how financial inclusion relates to sustainability and the level of sustainable development.
Finding: The paper argued that granting access to basic formal financial services contributes to greater sustainable development by ensuring that access to finance is guaranteed sustainably, and basic financial services are provided sustainably and based on sustainability principles to yield a lasting impact for sustainable development. The paper also argued that financial inclusion increases the level of sustainable development because financial inclusion increases the economic opportunities and social welfare of banked adults while it only provides limited benefits for the environment. This approach links financial inclusion to sustainable development by adopting sustainability principles in offering basic financial services to banked adults.
Implication: Consequently, a synergy between financial inclusion and sustainable development is needed. The synergy should be based on sustainability principles, requiring policies integrating financial inclusion into the sustainable development agenda.
Originality: This paper is the first to identify the relationship between the financial inclusion agenda, the sustainable development agenda and the sustainability agenda.
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Purpose: This chapter revisits digital financial inclusion as an international development agenda and discusses everything you need to know about digital financial inclusion…
Abstract
Purpose: This chapter revisits digital financial inclusion as an international development agenda and discusses everything you need to know about digital financial inclusion.
Methodology: This chapter uses conceptual discourse methodology to explain digital financial inclusion.
Findings: This chapter identifies the definitions of digital financial inclusion, the goal of digital financial inclusion, the components of digital financial inclusion, the types of providers of digital financial services, the instruments for digital financial inclusion, the benefits of digital financial inclusion, the risks of digital financial inclusion, and the regulatory issues associated with digital financial inclusion. It also proposes suggestions on how to make digital financial inclusion work for the good of all. This chapter concludes by offering some implications for policymaking and practice in the digital finance ecosystem.
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Binh Nguyen The, Tran Thi Kim Oanh, Quoc Dinh Le and Thi Hong Ha Nguyen
This article aims to study the nonlinear effect of financial inclusion on tax revenue of 21 low financial development countries (LFDCs) and 22 high financial development countries…
Abstract
Purpose
This article aims to study the nonlinear effect of financial inclusion on tax revenue of 21 low financial development countries (LFDCs) and 22 high financial development countries (HFDCs) from 2004 to 2020.
Design/methodology/approach
The study calculates the world average financial development index (
Findings
Using the Bayesian method, the results show that financial inclusion negatively impacts tax revenue with an absolute probability of 100% in LFDCs and a lower probability of 92.45% in HFDCs. Additionally, the financial inclusion threshold at LFDCs is 18.90. Below this threshold, financial inclusion promotes tax revenue with a 100% probability. On the contrary, when financial inclusion exceeds the threshold, it will have a negative effect on tax revenue. Similarly, the financial inclusion threshold at HFDCs is 20.14, with a probability of 92.45%.
Originality/value
To the best of the authors’ knowledge, this is the first paper to examine the nonlinear impact of financial inclusion on tax revenue in high and low financial development countries.
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Urvashi Suryavanshi, Rishi Chaudhry, Meenal Arora and Amit Mittal
The purpose of this paper is to analyze the existing literature in the domain of financial inclusion and emphasizing forthcoming trends. It examines recent literature while…
Abstract
Purpose
The purpose of this paper is to analyze the existing literature in the domain of financial inclusion and emphasizing forthcoming trends. It examines recent literature while assessing the geographical distribution, identifying well-known authors, publications, journals and keyword occurrences.
Design/methodology/approach
Based on a scientific search technique, bibliometric analysis in the field of financial inclusion was carried out on a sample of 2,125 Scopus documents for the years 2004–2022. A VOS viewer was used in the study as a tool for performance evaluation and analysis of the science mapping.
Findings
The bibliometric analysis illustrates that India and the USA are dominating in financial inclusion field with significant contributions. The most well-known authors were Ghosh, S. and Munene, J.C. and International Journal of Social Economics was considered as the best journal. Finally, six prominent clusters were identified through keyword analysis. The major themes revolve around digitalization, economic development, demographic and geographic factors and financial literacy.
Practical implications
The research helps in providing information for formulating financial inclusion policies for RBI and Government of India. A comprehensive literature assessment is useful for future scholars to develop a solid conceptual framework. This research would help practitioners to formulate strategies for rural population to enhance their earnings, investments and money.
Originality/value
This study can supply data to describe the framework of earlier financial inclusion studies and provides potential directions for future research.
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Shan Jin, Christopher Gan and Dao Le Trang Anh
Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial…
Abstract
Purpose
Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare.
Design/methodology/approach
With the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity.
Findings
We reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare.
Originality/value
This study offers valuable insights into China’s rural financial inclusion progress, highlighting potential barriers and guiding government actions.
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Ayi Gavriel Ayayi and Hamitande Dout
The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.
Abstract
Purpose
The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.
Design/methodology/approach
The authors use the two-stage principal component analysis (PCA) method and consider financial technology innovations to improve the accuracy of the financial inclusion index.
Findings
The authors found a downward trend in the financial inclusion index in most developing countries over the study period. The authors also found that a high financial inclusion index is linked to high scores in the Doing Business and high business climate regulation ranking. In addition, the authors observed that the rates of low financial inclusion in developing countries are due to low utilization of and unequal access to financial services.
Practical implications
The analysis suggests that policymakers in developing countries could invest in digital infrastructure to extend access to financial services in remote areas. They could also encourage financial innovation, particularly in financial technologies, by adopting flexible regulatory frameworks. Promoting the financial inclusion of marginalized groups through targeted initiatives tailored to their needs is another solution. They could also encourage the use of financial services by raising awareness and educating populations through training programs. Finally, to improve the business climate, governments could simplify administrative procedures and promote transparency and legal stability.
Originality/value
Unlike previous studies, the use of the two-stage PCA method and the consideration of financial technology (Fintech) innovations such as mobile money in the determinants of the financial inclusion index improve the accuracy of the index.
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