Embracing mobile financial inclusion in the wake of Covid-19 pandemic: The mediating role of cognitive and affective-based trust embeddedness
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The aim of the study is to examine the role of social capital in the formation of mobile financialservice users’ adoptive behaviours toward service providers in the context of the financialtechnological regime of Ghana. The study used a total of 417 sample data from a self-administeredquestionnaire to achieve its objectives. Structural equation modeling was employed to analyze thedirect effects of social capital and the mediation role of cognitive-based trust and affective-based truston mobile financial service. The results of the study demonstrate that social capital, cognitive-basedand affective-based trust collaboratively impact on the adoptive lifestyle of mobile financial serviceusers. Specifically, both cognitive-based and affective-based trust mediate between social capital andmobile financial inclusion to inform users’ behavioral intentions. The results however, reveals thataffective-based trust plays a significant role in shaping mobile financial service users’ behavioralintentions than cognitive-based trust. In detail, the study indicates that social capital directly impactson the adoptive behavior of mobile financial service users. It is therefore, recommended that in thepresent era of Covid-19 pandemic and its attendant social distancing protocols, mobile financialservice providers should invest heavily in social media channels to develop their corporate socialcapital brand in order to deepen their bondage with users. The study makes a vital contribution to theevolving debate on mobile financial inclusion, information system and consumer psychology fromAfrican perspective. The study acknowledges the contributions of prior studies to the afore-mentionedstrands of discipline and the chasm in literature. Specifically, this study is the first of its kind toempirically examine the influential functions of social capital, cognitive-based trust and affective-basedtrust on mobile financial inclusion from the len of the Ghanaian financial technological landscape.The study will equip industry players with the needed know-how to enhance their profitability andoperational competitiveness.Keywords:
Social Cognitive Theory
Financial inclusion (FI) aims to ensure access of the unbanked and underbanked, especially in low-income countries, to formal financial services such as payment services, saving services, credit services and insurance services. Representatives from 90 low income countries have formed the Alliance for Financial Inclusion (AFI) aiming to foster FI for the 2.6 billion unbanked worldwide (Alliance for Financial Inclusion, 2014). However, the world is not only giving special attention to the question of whether people are banked, but also to how they access financial services. This article covers the global challenges of FI and their potential solutions by highlighting the following aspects: identification, financial literacy, rural and gender inequalities as well as cashless payments and transaction accounts. Furthermore, it shows as an example the Nigerian experience of digital saving.
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This paper reviews the African experience in fostering financial inclusion. It examines two aspects of financial inclusion—access by enterprises and households to affordable and appropriate formal financial services and the actual usage of financial services and products, how this has been helped with financial deepening. Empirical evidence does not point to a clear, definite relationship between financial deepening and access to affordable financial services or usage of financial services. This underscores the importance of paying attention to all dimensions of financial inclusions and innovations that meet the firms and households’ needs. Financial inclusion is part of the solution to the serious problem of financial access/usage gaps that exist in many African countries, but not of itself a panacea.
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Financial inclusion is an effort to give access and make sure that the usage of financial services by underserved population. Formers financial inclusion is very important for increasing the standard of living and it’s an important tool for empowerment of farmers. There are many financial services which are available exclusively to farmers Like KCC, PMFBY, Crop Loan etc. but the usage of those services is not satisfactory among the farmers. In this paper, we are analyzing whether the financial services to farmers are influencing the financial inclusion of famers. The primary data is collected from 160 farmers and data is analyzed by using various statistical techniques like correlation, parametric test by using statistical software called SPSS and MS Excel. The study reveals that the digital financial services are increasing the financial inclusion among farmers and there is lack of awareness about most of the financial services available to the farmers.
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Financial inclusion has emerged as a policy concern in many countries, leading to various initiatives to promote financial inclusion for marginalised populations, including persons with disabilities (PwD). This research examines the usage of financial services by PwD in developed and developing countries through a systematic literature review (SLR) and relevant descriptive statistics. The findings shed light on significant barriers hindering PwD to financial services, such as information asymmetry, complex banking procedures, insufficient sensitivity towards disabilities that result in less accommodating financial services, and limited innovation in banking services. The findings suggest that improving financial literacy and adopting inclusive digital financial services are keys to improving financial inclusion for PwD.
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For sustainable development, financial services including interest, deposits, E-commerce, and access to finance should be available to everyone in the society, especially to the marginalized groups. This research is utilizing a questionnaire to identify the level of financial inclusion, use of financial services, and barriers in Quetta-Pakistan. The results suggest that access to a bank account, awareness, and level of satisfaction with banking services is high showing efficient performance by banks, but the utilization of these services is very low. It is also observed that people are availing only basic services. The banking sector failed to provide other services like interest, credits, insurances, e-commerce, and investment. Even the deposit function was availed because of mandatory conditions from the employer for salary. The level of financial resilience is low. The highest self-reported barrier to the use of bank account was illiteracy, language problems, and religious reasons. This research has a policy implication for industry participants and the government to play an important role in increasing the level of financial inclusion.
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Financial inclusion, that is, access of excluded households and small firms to financial products and services, is seen as a way to promote more inclusive growth by providing the previously unbanked with access to means for savings, investment, consumption smoothing, and insurance. Financial technology (Fintech), that is, using software, applications, and digital platforms to deliver financial services to consumers and businesses through digital devices such as smartphones, has become recognized as a promising tool to promote financial inclusion. The present paper investigates the developments of financial inclusion and Fintech in the Association of Southeast Asian Nations (ASEAN) member countries and India to identify the ways that Fintech is contributing and can potentially contribute to increased financial inclusion. It also examines potential risks arising from use of Fintech, highlights differences in the strategies and implementation of financial inclusion and Fintech between India and ASEAN, and draws lessons and policy recommendations from these findings.
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Financial inclusion is a multidimensional approach. With technology intervention in financial inclusion, electronic banking activity in rural India leads to increased use of financial services and better living standards. In the rising market, many people using mobile phones still are not able to access banking products and financial services. This indicates a huge untouched market for commercial banks. In India, mobile banking services are still in the early stages of development. Thus, the main objective of the chapter is to understand the factors that would act as drivers towards the adoption of mobile financial services and understand people's intention to adopt and use of mobile banking services which lead to increases accessibility towards financial products among rural people as well improve standards of living and overall development of the nation. The study focuses on utilizing secondary sources which is related to financial inclusion to understand the new banking technology and identifies people's behavior towards adoption and uses of banking services.
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Financial Inclusion (FI) is enabling access to/delivery of banking services at an affordable cost to the vast sections of disadvantaged and low-income groups. Unrestrained access to public goods and services is the sine qua non of public policy of a nation. Microfinance programmes are intended to reach poor segments of society as they lack access to financial services. It, therefore, holds greater promise to further the agenda of financial inclusion as it seeks to reach out to the excluded category of population from the banking system. INAFI INDIA as a network of development NGOs is committed to the financial inclusion. Its member NGOs are involved in promoting financial inclusion through their large micro finance programme of SHG bank linkage. Financial inclusion is not just credit dispensation, its about connecting the people with the banking system for availing bouquet of financial services including access to payment system. Technology holds the key to further the process of financial inclusion, more so in the remote and far flung areas. It enhances access to financial services in a cost effective manner and over time with the increasing volume lead to more affordability.
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Financial Inclusion is a one of the major realms of concern for the researchers and policy makers. Pradhan Mantri Jan Dhan Yojna (PMJDY) is a major step towards Financial Inclusion in India. This scheme has helped the marginalized section to own bank account but still miles to be achieved. The major concern now is to ensure usability of financial services. The Indian Telecommunication Industry is the fastest emerging industry. Telecommunication with its huge network is surfacing as crucial channel for launching new access techniques for banking services. This paper uses Structural Equation Modelling based software Smart PLS to examine the relationship between telecom and financial Inclusion. Data is collected randomly from two villages namely, Chaparia and Jagatpur of Madhubani District of Bihar. The sample size for the study is 200 with household as its sampling unit. The study includes 6 constructs and 44 indicators. All the 9 paths are statistically significant which shows significant relationship between the two dimensions, Financial Inclusion and Telecom. The financial institutes and telecom company have to play complementary role in achieving financial inclusion.
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