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on Financial Literacy and Education |
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Issue of 2024‒03‒18
nine papers chosen by |
| By: | damane, moeti; Ho, Sin-Yu |
| Abstract: | This study explores the development of financial inclusion in 37 Sub-Saharan Africa countries during 2005-2019. We first offer a conceptual definition and measurement of financial inclusion. We then discuss international initiatives and country-specific strategies to promote financial inclusion. We also document cross country trends in financial inclusion in the region and highlight general challenges before identifying possible solutions. We find that the extent of financial inclusion in the region varies across low-income, lower-middle-income, and upper-middle-income economies, with lower-middle-income countries having higher access to and use of financial services. Furthermore, although financial inclusion in the region has improved over time, partly due to legislative initiatives, challenges remain, including lack of coordination, gaps between financial deepening and inclusion, low financial literacy, and gender discrimination. We recommend the need for stakeholder-focused national financial inclusion strategies and policy reforms based on peer learning and transformation. |
| Keywords: | Sub-Saharan Africa; Financial inclusion; National financial inclusion strategies; Alliance for financial inclusion; Financial access survey. |
| JEL: | G0 G21 G28 |
| Date: | 2023–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120239&r=fle |
| By: | Damane, Moeti; Ho, Sin-Yu |
| Abstract: | The study explores the link between financial inclusion and financial stability in 37 Sub-Saharan African countries. Results of our panel data analysis show that financial inclusion positively impacts financial stability, especially in low-income countries with low levels of financial stability. Additionally, prior improvements in financial stability were found to have positive effects on present levels of financial stability. The study recommends policymakers to enhance cooperation, target excluded communities for financial inclusion, improve financial literacy, and cross-fertilize skills. |
| Keywords: | Sub-Saharan Africa; Financial Inclusion; Financial Stability; Dynamic Common Correlated Effects; Quantile Regression |
| JEL: | G0 G2 G21 G28 |
| Date: | 2024–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120238&r=fle |
| By: | Ozili, Peterson K |
| Abstract: | The literature has not extensively examined the dangers of digital-only financial inclusion. The purpose of this chapter is to highlight the dangers of digital-only financial inclusion (DOFI). Using the discourse analysis method, the study showed that digital-only financial inclusion may be difficult to achieve when there is uneven availability and uneven access to digital devices. It was also argued that digital-only financial inclusion could lead to high cost of internet broadband, and it places much emphasis on accelerating digital access rather than protecting users who use digital finance platforms. Furthermore, it pays little attention to risk mitigation, and produces digital ID schemes that enable government surveillance. It also prioritizes digital access rather than financial health; and makes it easier to perpetrate fraud using digital means. Finally, it can enable the endless pursuit of power, and it prioritizes a digital version of financial inclusion at any cost. As much as possible, the strategies used to advance financial inclusion should not be too dependent on digital technologies because they only offer digital access and more access but may not improve the financial health of users in a significant way. |
| Keywords: | digital-only financial inclusion, digital financial inclusion, financial inclusion. |
| JEL: | G00 G20 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120152&r=fle |
| By: | Hasan, Amena; Dowla, Asif-Ud; Tarannum, Ramisa |
| Abstract: | This research paper examines the impact of financial inclusion on the economic growth of developing nations, with a focus on Bangladesh. It reviews existing literature and develops hypotheses related to savings, capital mobilization, entrepreneurship, poverty alleviation, financial stability, and formalization of the economy. The paper presents a conceptual framework illustrating the pathways between financial inclusion and economic growth indicators. Data analysis shows a positive correlation between financial inclusion and GDP growth, as well as a link to poverty reduction. The paper concludes with policy implications for promoting financial inclusion in Bangladesh. |
| Keywords: | Financial inclusion, economic growth, Bangladesh, poverty alleviation, financial stability |
| JEL: | D8 E4 H3 M2 |
| Date: | 2024–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120213&r=fle |
| By: | Ozili, Peterson K |
| Abstract: | This chapter examines the role of embedded finance in increasing financial inclusion. The author shows that embedded finance increases financial inclusion by changing the way banked adults, unbanked adults and SMEs interact with financial services. Embedded finance provides greater access to finance for underserved adults and businesses and generates revenue for embedded finance service providers and banks, thereby presenting a win-win opportunity for both the users and providers of embedded financial services. |
| Keywords: | Financial inclusion, embedded finance, embedded payments, unbanked adults, poverty. |
| JEL: | I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120155&r=fle |
| By: | Ozili, Peterson K |
| Abstract: | This study investigates the impact of terrorism on financial inclusion that is achieved through ATM penetration and bank branch expansion. Eight countries that are the most terrorized countries in the world were analysed using the panel fixed effect regression model and the generalized linear model. The results provide evidence that terrorism reduces the level of financial inclusion in countries experiencing terrorism, but the presence of strong legal institutions, accountability governance institutions and political stability governance institutions mitigate the adverse effect of terrorism on financial inclusion. |
| Keywords: | Terrorism, financial inclusion, access to finance, institutions, commercial bank branchs, ATM. |
| JEL: | G00 G21 I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120154&r=fle |
| By: | Koefer, Franziska; Bokkens, Amber; Preziuso, Massimo; Ehrenhard, Michel |
| Abstract: | This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives. This is the third paper resulting from a research project on 'Strengthening Financial Inclusion through Digitalisation' (SFIDE), initiated by EIF's Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:283601&r=fle |
| By: | Audi, Marc; Poulin, Marc; Ali, Amjad |
| Abstract: | This study aims to examine the impact of financial inclusion on human well-being in South Asian countries from 1996 to 2020. Specifically, Pakistan, India, Sri Lanka, and Bangladesh were selected for this investigation. Human well-being is treated as the dependent variable, while financial inclusion, health facilities, voice & accountability, income inequality, corruption, education facilities, and the unemployment rate are considered independent variables. The study's findings indicate that financial inclusion, health facilities, and education facilities have a positive and significant impact on human well-being. The improvement of health and educational facilities not only creates more employment opportunities but also contributes to the enhancement of income, education, and health status within a nation. These results explain that selected South Asian countries should prioritize the promotion of education and health facilities to elevate the overall level of human well-being. Voice & accountability, along with corruption, exhibit an inverse and significant influence on human well-being in selected South Asian countries. Income inequality, on the other hand, shows an inverse but insignificant impact on human well-being, while unemployment has a significant and positive influence. Based on the estimated results, it is recommended that to enhance the level of human well-being in South Asian countries, there is a need to improve financial inclusion, health facilities, and educational facilities. |
| Keywords: | human well-being, financial inclusion, health facilities, voice & accountability |
| JEL: | D63 I22 I30 P46 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120119&r=fle |
| By: | Martin Brown; Laura Felber; Dr. Christoph Meyer |
| Abstract: | Financial intermediaries play an important role in consumer adoption and use of payment technology. Card schemes and card-issuing banks set rules for cashless payments between consumers and merchants. We document that these rules have a strong causal impact on the use of digital payment technology. We study an increase in the value limit for contactless cardholder verification (“tap-and-go” limit) that was introduced at the onset of the COVID-19 pandemic. Our analysis is based on anonymized, transaction-level data for a large sample of point-of-sale (POS) debit card payments between 2019 and 2021. We show that the increase in the “tap-and-go” limit caused a significant increase in the consumer use of contactless payments but only a minor increase in first-time adoption of this payment technology. Our results suggest that policy-makers are advised to consider the role of intermediaries and verification rules when evaluating payment innovations, such as instant payment systems or central bank digital currencies (CBDCs). |
| Keywords: | Payment choice, Financial intermediation, Technology adoption, Contactless payments, COVID-19 |
| JEL: | D14 E42 G21 G23 G50 O33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2023-08&r=fle |