The impact of formal financial inclusion on informal financial intermediation and cash preference: evidence from Africa

Alhassan, Abidin; Li, Leon; Reddy, Krishna; Duppati, Geeta

doi:10.1080/00036846.2019.1593316

Cited by 17 publications

(13 citation statements)

References 29 publications

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“…In this case, we test the number of individual samples for formal financial intermediation using a formal account (account ownership). The proxies allow us to determine whether informal financial intermediaries are complements or substitutes to formal financial intermediation by regressing the dependent informal proxies against the formal financial proxies (Alhassan, Li, Reddy, & Duppati, 2019). The common phenomenon, private lender, such us moneylenders and pawnbroker have been dominated financial public activity in the most community in Indonesia.…”

Section: Datamentioning

confidence: 99%

Women Access and Awareness of Financial Inclusion in Indonesia

Rahadiantino

Rini

2021

JEP

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The financial system plays a role in creating a community economic development, especially overcoming gender disparities. This paper analyzes the effect of mobile phone on the financial inclusion of women's in Indonesia involving data from household surveys provided by the 2014 Family Life Survey. We use the probit model with Ordinary Least Square (OLS) methods and the variable procedure to examine how the role of mobile phone on women's awareness in accessing financial institutions, as well as increasing savings and loan ownership. Our estimation results found that mobile phone penetration significantly increased awareness of women to access formal financial institutions, improve saving behavior, higher credit amount and access mobile banking. Therefore, mobile phone brings great benefits in increasing financial inclusion, especially women in Indonesia.

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Section: Datamentioning

confidence: 99%

Women Access and Awareness of Financial Inclusion in Indonesia

Rahadiantino

Rini

2021

JEP

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“…This study demonstrates how important digitalization is for the agriculture sector and its promotion; digitalization improves agricultural commercialization, according to the Heckman treatment effect model [5]. The importance of terms of cost efficiency in Africa's financial system is reflected in the fact that the connection between informal and formal financial intermediation is complementary rather than competitive, using formal financial brokers decreases the desire to keep cash, suggesting that a well-developed financial system network has the potential to mobilize excess cash in Africa's informal sector for growth and development, formal digitalization is positively correlated with informal banking services [6]. Digitalization is now recognized to be far implications that can help many individuals escape poverty.…”

Section: Review Of Literature and Hypotheses Formulationmentioning

confidence: 99%

Impact of Digitalization on the Farmers in India: Evidence using Panel Data Analysis

Gautam¹,

Bhimavarapu²,

Rastogi³

2021

IJMH

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The composition of digitalization and financial technology has brought about a new development model for the agriculture sector. What is the impact of digitization on India’s farmers? To answer this issue, this article examines the effects of digitalization on farmers in India using secondary data from 2018 to 2020, based on the idea of digitalization. It analyses the transmission of digitalization among Indian farmers using panel data analysis. The conclusions are as follows: Farmers' income can be significantly increased by digitalization, and farmers' digitization has resulted in agriculture sector development and contributed to economic progress.

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“…As a result, informal finance becomes an alternative way of providing loans to micro and small businesses. Therefore, informal lending permeates both the rural and urban sectors of the economy to service financially excluded businesses (Abdulai & Tewari, 2017;Alhassan et al, 2019;Mutsonziwa & Fanta, 2021). The informal sector of the economy hosts informal financial activities, with loans coming from friends, relatives and neighbours, thus creating an array of financial relationships that are informally influenced (Benedict et al, 2021;Bouman & Moll, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…It is prevalent in developing countries where financial markets are underdeveloped (Wellalage & Fernandez, 2019). In Africa, access to financial resources for certain businesses has been cited to be a challenge, and the informal financial intermediaries close this gap (Abdulai & Tewari, 2017;Alhassan et al, 2019;Hacini et al, 2022;Mustafa et al, 2021;Zins & Weill, 2016). Financial exclusion also leads women-owned micro and small businesses to dominate the informal finance sector, using microfinance as a source of capital (Mustafa et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Does informal finance matter for micro and small businesses in Africa?

Mago

Modiba

2022

Small Bus Int Rev

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Globally, micro and small businesses require finance to support their business activities. Most of them have low profits because of the lack of support from the formal financial system. Micro and small businesses in developing countries have a dire need for financing start-ups and existing business operations. The lack of support from the formal financial system and the government forces them to explore other financial support mechanisms, making it important to investigate alternative financial channels. This paper investigates whether informal finance matters for micro and small businesses. We used a systematic literature review to answer the predetermined research question. Thirty (30) primary studies were surveyed to establish the importance of informal finance for micro and small businesses. The findings show that informal finance is a workable alternative for micro and small businesses. It supports business start-ups, existing businesses and enhances business growth, business owners’ livelihoods and livelihoods in their communities. Informal finance models can be improved to work as small business promotion tools. The original value of the paper is based on the use of a systematic literature review to assess whether informal finance matters for micro and small businesses and connect theories with emerging themes. It further contributes to the debates on the importance of informal finance and contributes to future lines of research on informal finance.

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The impact of formal financial inclusion on informal financial intermediation and cash preference: evidence from Africa

Cited by 17 publications

References 29 publications

Women Access and Awareness of Financial Inclusion in Indonesia

Women Access and Awareness of Financial Inclusion in Indonesia

Impact of Digitalization on the Farmers in India: Evidence using Panel Data Analysis

Does informal finance matter for micro and small businesses in Africa?

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