Islamic financial inclusion determinants in Indonesia: an ANP approach

Ali, Mohammad Mahbubi; Devi, Abrista; Furqani, Hafas; Hamzah, Hamzah

doi:10.1108/imefm-01-2019-0007

Cited by 44 publications

(40 citation statements)

References 63 publications

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“…On the other hand, financial inclusion may pose a danger to financial system stability, with high potential risks linked to increased borrowing by low-income individuals (Van et al 2021a) and therefore, financial inclusion outcomes on the financial system have to be examined, particularly as policymakers have begun viewing it as a priority around the globe (Ali et al 2020;Sarma and Pais 2011). Added to this, related studies also indicated that efforts towards promoting financial inclusion have led to higher welfare, lower poverty level, and lower income inequality (Beck et al 2005;Chibba 2009;Aduda and Kalunda 2012;Cull et al 2012;Morgan and Pontines 2018;Kim 2016;Neaime and Gaysset 2018;Shihadeh et al 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Inclusion Indicators Affect Profitability of Jordanian Commercial Banks: Panel Data Analysis

2022

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Previous literature supports the view that the financial inclusion leads to economic growth and helps alleviate poverty; however, it is still unclear whether financial inclusion increases bank profitability. The study assumes that financial inclusion is significant in enhancing the economy and minimizing loan accounts, and along with this assumption, the deposit size decreases the Jordanian banks’ profitability despite the fact that the financial services and access to them have no significant influence upon such profitability. The major profitability drivers examined in this study comprised financial inclusion and financial leverage. In this study, 13 Jordanian banks’ data from 2009 to 2019 were examined to determine the above issue. The study applied fixed effects on a panel data regression model. The findings indicated that the number of loan accounts and size of deposits negatively and significantly impacted the profitability of the commercial banks in Jordan. However, the number of branches and ATMs had no significant effect on the bank’s profitability. In sum, both leverage and bank size were the top two determinants of commercial banks’ profitability in Jordan. Based on the findings, Jordanian policymakers can shift their focus to offering affordable financial services that support SMEs’ loans and start-ups.

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Section: Literature Reviewmentioning

confidence: 99%

Financial Inclusion Indicators Affect Profitability of Jordanian Commercial Banks: Panel Data Analysis

2022

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“…Furthermore, the practice of AR-SFLS will expose young learners to the importance of sharia financial literacy early on in their lives. The level of Islamic financial literacy is a determining factor for people to use financial products, thereby increasing financial inclusion (Widityani et al, 2020;Ali et al, 2020b;Yazdan and Hossein, 2012). Financial literacy is also a driver of human capital development (Huston, 2010) and human capital investment which in turn encourages higher economic growth (Affandi et al, 2019;Yazdan and Hossein, 2012).…”

Section: Literature Review and Hypothesis Development 21 Sharia Financial Literacymentioning

confidence: 99%

Augmented reality (AR)-based sharia financial literacy system (AR-SFLS): a new approach to virtual sharia financial socialization for young learners

Sari

Fatimah

Ilyana

et al. 2021

IMEFM

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Purpose This study aims to examine financial socialization based on augmented reality (AR) technology for elementary school students, which it is hoped will improve their sharia financial knowledge. Design/methodology/approach The experimental method with pre- and post-test and control groups was used to test the improvement in the young learners’ sharia financial knowledge. This study used AR for sharia financial socialization on elementary school students and focused on sharia’s basic concepts, which include earning money, balanced spending, borrowing, saving, investment, payment methods, financial technology and the concept of protection. Findings This study finds empirical evidence that the treatment group, who received sharia financial socialization via the AR media, increased their sharia financial knowledge to a greater extent than the control group did. Research limitations/implications This study provides encouraging evidence about the potential of sharia financial education for elementary school students using the appropriate learning strategies and media. The weakness in this study is that it was only carried out in one elementary school, with the children of middle- to upper-income parents. Further research should be undertaken at several schools with the children of parents with different income levels. Practical implications A shift in learning styles from verbal or visual to virtual encourages the use of AR-based learning media. Financial concepts can be abstract ones, and AR-based learning media is able to present intangible virtual elements so they become more concrete and tangible. Social implications The global COVID-19 pandemic has affected all aspects. One of the most severe and likely to be multiyear ahead is the financial aspect. Therefore, this research is expected to be a preparation for the younger generation as early as possible to strengthen social benefits in order to improve sharia financial literacy. Originality/value Research into the financial literacy, especially sharia financial literacy aimed at elementary school students, is still very limited. The teaching of financial literacy will be more effective if educators use the appropriate strategies and media. This study used financial socialization strategies and AR learning media that are aligned with the learning styles of young learners.

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“…These factors were also seen to be critical in improving informal saving and borrowing. Ali et al (2020) also sought to assess the determinants of Islamic financial inclusion in Indonesia. Through the use of the analytic network process to get expert opinions from academics and practitioners the study found out that financial inclusion was influenced by demand-side and supply-side factors.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

“…On the demand side, Islamic financial inclusion was influenced by financial literacy, religious commitment, socioeconomic factor and social influence while the supply side of Islamic financial inclusion was influenced by the level of importance of human capital, the nature of products and services, the infrastructure as well as the policies and regulation. All these factors were viewed as important factors in creating an enabling environment for policymakers to strengthen Islamic financial inclusion in Indonesia (Ali et al, 2020).…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Factors That Matter for Financial Inclusion: Evidence from Sub-Sharan Africa - The Zimbabwe Case

Mhlanga

2021

Acad. J. Interdiscip. Stud.

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The study intended to investigate the factors that are important in influencing the financial inclusion of smallholder farming households in Sub-Saharan Africa with a specific focus on Zimbabwe. Motivated by the fact that there is an increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study went further to interrogate factors that influence smallholder farmers to have a transaction account, to borrow and to have insurance. Since the dependent variable of financial inclusion had more than two categories, with three unordered categories, transaction account, savings/credit account, and insurance, the multinomial logistic regression was used to estimate the determinants of financial inclusion from these three categories of the dependent variable. The multinomial logit model results, with insurance as the reference category, indicated that the size of the household, transaction costs, gender and agricultural extension service were the factors influencing the demand for a household to open a transaction account. On the other hand, off-farm income and age of the household were the only two factors significantly influencing households to borrow. Therefore, it is imperative for, the government of Zimbabwe to come up with more policies that encourage farmers to participate in the formal financial market as financial inclusion can help to fight poverty and the general developments of societies. Received: 28 April 2021 / Accepted: 31 August 2021 / Published: 5 November 2021

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Islamic financial inclusion determinants in Indonesia: an ANP approach

Cited by 44 publications

References 63 publications

Financial Inclusion Indicators Affect Profitability of Jordanian Commercial Banks: Panel Data Analysis

Financial Inclusion Indicators Affect Profitability of Jordanian Commercial Banks: Panel Data Analysis

Augmented reality (AR)-based sharia financial literacy system (AR-SFLS): a new approach to virtual sharia financial socialization for young learners

Factors That Matter for Financial Inclusion: Evidence from Sub-Sharan Africa - The Zimbabwe Case

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