ABSTRACT
Purpose: This paper aimed to examine the role of digital financial services on registered micro, small, and medium enterprises in India. This study examined the MSME knowledge, usage, and preferences about several digital financial technologies. Further, the paper discussed the impact of demographic variables on DFS adoption. Methodology: Primary data were gathered for the study. The questionnaire had three parts. The first part covered demographic variables. The second part identified questions related to DFS awareness and the reason for adopting DFS. The last part covered DFS adoption in various financial activities. Findings: DFS awareness in the MSME sector was high but far from the required level. Demonetization and COVID-19 also increased the awareness of DFS in the Indian MSME sector. The DFS adoption was found to be affected by the age and experience of the owner/manager. Also, the educational level of the owner/manager did not always impact the DFS adoption. Practical Implications: Digital financial service providers should increase customer satisfaction and reduce administrative expenses by making their website or application user-friendly to attract MSMEs. Additional government support is essential to enhance DFS awareness among MSMEs. Originality/Value: This study added to the limited existing literature on MSMEs and their knowledge of digital payments. © 2023, Associated Management Consultants Pvt. Ltd.. All rights reserved.
ABSTRACT
The digital economy has risen dramatically in the global environment, and many developing countries, including African countries, have seen a spike in digital activity over recent years. The digital economy’s growth has resulted in an increase in digital financial services (DFS) in Africa and other developing regions. Since many African countries are under pressure to raise domestic revenue, taxing the digital economy has become a viable option. As a result, this study attempted to respond to the following questions: first, what is the link between DFS growth and digital inclusion in African countries? Second, what justifies the imposition of DFS taxes in Africa? Third, what are the potential consequences of DFS taxes in African countries? Using secondary data from the literature review and document analysis, a systematic technique for assessing or evaluating printed and electronic documents, and computer-based and internet-transmitted material, the study discovered that digital financial inclusion is driving financial inclusion on the African continent. The study also found that, despite several negative consequences associated with the growth of the digital economy, most African economic activities are informal and are being aided by various digital financial services. Therefore, it is equally crucial that when adopting digital finance taxes, care is taken to avoid excluding low-income earners from the financial sector and to take note of the usage, affordability, and distortive implications of taxation.
ABSTRACT
This chapter provides an overview of how digital technologies are transforming the financial services landscape. We highlight the latest in digital financial product and service offerings related to payments and transfers, savings and investments, borrowing, and risk management. We then consider how digitalization is impacting the delivery of financial advice - including virtual advisors, robo- and hybrid advisors, and personal finance communities. While many of these digital innovations were underway prior to Covid-19, the pandemic accelerated the transition raising concerns that some individuals and families may be at risk of being excluded from financial services due to growing socioeconomic and digital divides. We look at barriers to access and usage and emphasize the need for digital financial literacy. Legal and regulatory challenges are also examined. Particular attention is given to recent efforts by regulatory and supervisory authorities to balance innovation and competition with consumer protection. The insights from this chapter provide a useful starting place for scholars and practitioners who are interested in exploring in greater detail how digital technologies are impacting the financial services industry. © 2022 Walter de Gruyter GmbH, Berlin/Boston.
ABSTRACT
The vulnerability of populations with limited resources and either in or at risk of poverty to a myriad of crises continues to increase. The ongoing COVID-19 pandemic has further highlighted the inadequate resilience to crisis that such populations hold, and the rising prevalence of climatic variation is an existential risk factor that will continue to rise. In Mozambique, most livelihoods depend on natural resources and there is a high threat of extreme climate-related events. By drawing lessons from the Financial Services Deepening Mozambique (FSDMoç) programme, we highlight ways in which greater resilience has been built among fragile populations through innovative uses of digital financial services (DFS), and how resilience has been built with an explicit gender lens in order to mitigate existing inequalities. Lessons are drawn in relation to challenges faced and their application to wider programming. © 2022 Practical Action Publishing. All rights reserved.
ABSTRACT
The digitization of financial transactions in both Global North and Global South has led to considerable shifts in how money is used, understood, and processed by users, banks, and fintechs. This shift from physical cash to digital media, accelerated by the COVID-19 push for digital transactions, has impacted how users perceive and use digital money and opened avenues for more data collection. This diverse panel proposes a discussion to understand the set of opportunities and challenges around the design of digital financial services (DFS) and data-driven decision-making in DFS. We will create a live working document starting before the panel to document the discussion, which develops during and after the panel. This live document will enable community to engage with a broader audience of researchers and industry, outlining processes, methods, and tools that researchers and practitioners have created to work with users to develop new equitable DFS and further exploration. © 2022 Owner/Author.
ABSTRACT
Purpose>The purpose of this study is to explore digital financial services experience, investigate the antecedents to digital financial services experience and examine familiarity as a moderator.Design/methodology/approach>The study uses dual methods: qualitative and quantitative. Multiple case studies are applied as a qualitative method to explore and capture recent development in rapidly changing digital finance. An empirical, survey-based approach is used to collect data from 258 respondents about their experiences with digital financial services experience using constructs, such as perceived ease of use, timeliness, lifestyle and digital financial element. The study used structural equation modeling using smart-PLS.Findings>Using word count, hierarchy chart, items clustered by similarity and qualitative analysis by applying NVivo 12, the study validates the constructs and captures recent developments. Using smart PLS, the structural equation model reveals that the digital functional element positively affects the digital financial services experience. It is observed that lifestyle mediated between perceived ease of use and timeliness with digital financial services experience. Further, familiarity moderates the relationship between the digital financial element and digital financial services experience. Moreover, while this research analyzed the relationship regarding financial services customers, we suggest a comparative study between different entities.Originality/value>The study can be considered one of its kind using qualitative and quantitative research methods. It integrates theory from both the information system and marketing domain. As the increased number of digital channels and interfaces has increased, companies need to understand how to improve the digital financial services experience.
ABSTRACT
It is crucial to conjecture the consequences of the COVID-19 for an economy, to plan its policy and guidelines at present, and to prepare itself for the future. In the finance world it is suggested by health experts to use more and more digital financial services (DFSs). Thus in this paper, we will try to understand the impact of COVID-19 on DFS and digital financial inclusion in India. This research suggests that the impact of COVID-19 is negative on financial inclusion, whereas some DFS were impacted positively. While some DFS have faced the negative as well as neutral impact during this pandemic. Overall it is concluded that the impact on DFS is neutral to date, but with time and with the opening up of an economy, the status of DFS is expected to improve, which in turn will improve the status of digital financial inclusion in India in the future.