Investigating the environmental externalities of digital financial inclusion and the COVID-19 pandemic: an environmental sustainability perspective.

Financial inclusion enhances economic growth by facilitating businesses and individuals to access financial resources. Financial inclusion also contributes to environmental sustainability; however, very few studies have explored the link between financial inclusion and the environment. Also, the impact of the COVID-19 pandemic on environmental performance remains unexplored. From this perspective, this study probes the objective of whether financial inclusion and environmental performance co-move in COVID-19 in highly polluted economies. This objective is tested with the help of 2SLS and GMM approaches. The study also gets assistance from a panel quantile regression approach for empirical tasks. The results show that financial inclusion and the COVID-19 pandemic have a negative impact on CO2 emissions. Based on these findings, the study suggests that highly polluted economies should promote financial inclusion and assimilate environmental policies with financial inclusion policies to attain environment-related goals.

Financial inclusion and low-carbon architectural design strategies: solutions for architectural climate conditions and architectural temperature on new buildings.

The objective of this research is to explore the potential of financial inclusion and low-carbon architectural design strategies as solutions to improve the thermal comfort and energy efficiency of new buildings in different architectural climate conditions. The manufacture sector, which accounts for about 40% of all yearly greenhouse gas releases, has been stimulating with trying to reduce the amount of energy it consumes and the detrimental effects it has on the climate, in accordance with the standards outlined in the 2016 Paris Agreement. In this study, panel data analysis is used to examine the connection between green property financing and carbon dioxide emissions from the building sector in one hundred and five developed and developing countries. Although this analysis finds a negative correlation among the development of environmentally friendly real estate financing and firms' worldwide carbon dioxide emissions, it finds that this correlation is most robust in developing nations. A number of these countries are experiencing an unregulated and rapid population explosion, which has boosted their demand for oil, making this discovery essential for them. The difficulty in securing green funding during this crisis is slowing and even reversing gains made in past years, making it all the more important to keep this momentum going during the COVID-19 outbreak. It's critical to keep the momentum going by doing something.

Income shock and financial well-being in the COVID-19 pandemic: financial resilience and psychological resilience as mediators

Purpose: The purpose of this study was to investigate the relationship between income shock suffered during the coronavirus pandemic and subsequent financial well-being (FWB) of Indian adults, mediated by financial resilience (FR) and psychological resilience (PR). Design/methodology/approach: The authors propose a conceptual model for the relationship between income shock and FWB, with FR and PR as mediator variables. The authors consider four dimensions of financial resilience: economic resources, financial inclusion, financial knowledge and social capital. This study uses a unidimensional scale for PR. Data were collected from 370 respondents from 11 cities across India. Structural equation models were built to test the proposed hypotheses. Findings: Income shock was negatively associated with FWB. Estimated path coefficients for FR and PR were statistically significant and confirmed a mediating role. Among the four dimensions of financial resilience, only economic resources were positively associated with FWB. The mediation relation between economic resources and FWB was larger than PR. Research limitations/implications: Since convenience sampling was used to collect data, the results of this study are indicative but not generalizable. Social implications: For individuals who suffered income shocks during the pandemic, adequate economic resources are crucial for FWB. Governmental disbursements, personal savings and medical or life insurance could provide an adequate safety net. Originality/value: There are no extant studies that examine the association between income shocks and FWB in the pandemic, and this study contributes to the literature. © 2023, Emerald Publishing Limited.

Adoption of FinTech services amidst COVID-19 pandemic: empirical evidence from Assam

PurposeThe paper intends to comprehend the pattern of usage of FinTech services among bank customers during the COVID-19 pandemic. The paper also examines the factors influencing the adoption of FinTech services by using the constructs from the technology acceptance model (TAM) together with highlighting the issues faced in using FinTech services in Assam.Design/methodology/approachThe research is empirical in nature. Data have been collected from 1,066 prime earners of the households having a bank account.FindingsThere has been an upsurge in the use of FinTech services in the area of study. Apart from government and private service employees, businessmen, self-employed professionals, many daily-wage earners and agriculturists have also experienced an increase in their frequency of usage of FinTech services thereby making technology-based financial services an indispensable tool in enhancing access, improving inclusivity in the times of crisis and aftermath. Government support, trust, perceived usefulness (PU), attitude and social influence have a positive influence on FinTech adoption;however, perceived risks impact respondents' trust towards FinTech services thereby requiring necessary measures to evaluate organizations' preparedness to deal with cyber threats.Originality/valueThe paper provides insight into the factors impacting the adoption of FinTech services to stimulate superior connectivity infrastructure, robust security measures and maintaining financial stability with adequate supervisory and monitoring regulations to enhance trust towards FinTech services during the crisis and aftermath.

AI for Sustainable Finance: Governance Mechanisms for Institutional and Societal Approaches

Artificial intelligence (AI) for sustainable finance has been increasingly employed over the past several years to address the sustainable development goals (SDGs). Two major approaches have emerged: institutional and societal AI for sustainable finance. Broadly described, institutional AI for sustainable finance is used for activities such as environmental, social and governance (ESG) investing, while societal AI for sustainable finance is used to support underbanked and unbanked individuals through financial inclusion initiatives. Despite the growing reliance on such digital tools, particularly during the coronavirus disease 2019 (COVID-19) pandemic, governance mechanisms and regulatory frameworks remain fragmented and underutilized or inhibit progress toward the 17 UN SDGs. While major proposals and reports were released by standard-setting and regulatory bodies leading up to 2020, the COVID-19 pandemic indeed caused major setbacks to adoption and implementation, which in turn have also resulted in inconclusive data and lessons learned. As the global community begins to navigate out of the pandemic, policy makers, through multilateral and cross-sector agreements, are looking to renew governance mechanisms that mitigate new and pre-existing risks while cultivating sustainability and facilitating innovation. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

A Fintech-Based Zakat Model Using Artificial Intelligence

The COVID-19 pandemic and its associated lockdown have created a mammoth economic cost to the economies around the globe. The policy response to the crisis must be fast, secure, and sustainable. It has also created astonishing solidarity among the people with every element of society irrespective of race, caste, creed, or religion working together to save humanity. To overcome the financial and economic disruption caused by the pandemic, it needs immediate attention from the economists and policymakers. Islamic finance has many financial instruments for helping the poor by alleviating poverty, distributing income fairly, and improving social welfare, they comprise, Zakat, Sadaqat, Awqaf, etc. Zakat is the compulsory contribution from the Muslims to the poor and needy every year. Zakat is the compulsory donation from the rich and able Muslims which must be given to the poor and needy within a year. This immediate benefit of Zakat is well suited to tackle an economic crisis such as the one caused by COVID-19. Islamic finance in combination with the Fintech-based technologies like AI, Blockchain, machine learning, and natural language processing can work wonders in achieving Islamic finance objectives. The present study proposes an AI-based Islamic Fintech model to helping the needy and poor affected due to COVID-19. The model uses AI and NLP-based Fintech model for collection and dissemination of Zakat money to needy, poor, COVID-affected, and vulnerable sections of the society. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

Analysis of Factors Affecting MSME in Using Fintech Lending as Alternative Financing: Technology Acceptance Model Approach

This study aims to determine factors impacting the intention of Micro, Small, and Medium Enterprises (MSMEs) in using fintech lending applications as an optional source of business financing using the technology acceptance model approach. The population in this study were MSMEs in Indonesia. Samples were taken by purposive sampling with the criteria of having used a licensed fintech lending application for business financing. The samples used were 171 samples. This study used structural equation model (SEM) as the analysis technique. The results of this study showed that Perceived Ease of Use had an impact on Perceived Usefulness but had no effect on Attitude Toward Using. The factor Perceived Usefulness had an effect on Attitude Toward Using, and Attitude Toward Using influences Behavioral Intention to Use. Fintech companies can play a role by providing education and empowerment to foster understanding of digital literacy for MSME stakeholders. The governments need to develop policy frameworks that can balance innovation and risk mitigation.

Micro Finance in India - Emerging Challenges

For promoting financial inclusion in India, both banks and Non-Banking Finance Companies - Micro Finance Institutions (NBFC-MFIs) play a pivotal role by providing microfinance to individuals and tiny enterprises. There are 187 lending institutions in India engaged in providing microfinance of more than Rs.2.27 lakh crore. Today, microfinance activity is more technology driven to ensure adequate, timely and hassle free financial services. During the Covid-19 pandemic, the sector suffered significantly due to lack of demand for credit and increasing loan defaults. Hence, RBI announced certain measures including debt restructuring to provide relief for stressed micro loan customers and creating more liquidity in the market. Post the pandemic, there are enough business opportunities for the microfinance sector to prosper. However, the age old issues such as lack of due diligence in lending, over-indebtedness and multiple borrowing by customers and unethical recovery practices need to be addressed. Therefore, there is a need to make microfinance activity more digital, promote financial literacy, strengthen risk management systems, upgrade skills of the field level staff and formulate an effective grievance redressal system. Towards this end, the article attempts to review the performance of the microfinance sector at a time when India is currently celebrating the 75th year of Independence and offer suggestions to strengthen the microfinance sector in the country.

Managing Educational Determinants of Financial Inclusion as a Key Factor of Sustainable Development: Logit-Probit Modeling

This article is devoted to the question of identifying the relationship between the dimensions of formal education in the country and the level of its financial inclusion. To achieve it, logit-probit modeling was used between the integral indicator of financial inclusion, based on principal-component factors calculation, and various dimensions of education. Ninety-three countries with different levels of socio-economic development were chosen as the object of the study. As a result, the positive statistically significant influence of such determinants as financial literacy, duration of compulsory education, government expenditure on education, pupil-teacher ratio, school enrollment at the secondary level was confirmed. School enrollment at the primary level had a negative influence on financial inclusion. This vector of research will allow to form the main directions of management of educational determinants of financial inclusion, which are important vectors of reforming the education system and ensuring financial inclusion at the national level.

Divergence between economic growth and stock market performance in India: implications for investor education and financial well-being

Amidst declining trends of Indian macroeconomic indicators during COVID-19 period, certain indicators, which can be takes as proxies of investors' behaviour, sentiments and biases, were discerned in Indian securities markets. The study provides significant insight into sentiments and biases of a particular segment of retail investors trading in uncertain times of COVID-19, whose investment behaviour may have serious impact on their financial well-being in the long-term. This exploratory-descriptive study uses data collected by various regulators and government sources in India and abroad to evaluate the behaviour of investors in the backdrop of macroeconomic trends during COVID-19. After analysing the trends of investor participation, trading behaviour and general sentiment in the Indian capital markets and evaluating the implications of these investor-related behaviours on the financial well-being of individual investors, a comprehensive and segmented approach of financial literacy has been recommended to safeguard financial well-being of investors.

Growth evaluation of fintech connectedness with innovative thematic indices – An evidence through wavelet analysis

Purpose This study evaluated the growth of Fintech to measure the contribution towards the sustainable development goal of the United Nation in terms of financial inclusion through exploring the connectedness of fintech with several thematic indices. The study navigates the co-movements in short and long window-time frames. Design/methodology/approach This study used wavelet coherence method to analyze linkages between two-time series by considering the stock market co-movements. Wavelet coherence is applied on the pairwise Fintech-Index with the MSCI benchmarks for investment portfolio purposes. Findings The global correlation among indices signifying that the benchmark of MSCI USA has a greater level of interactions with the nascent industries but is not highly correlated with other benchmark equity indices. The Global FinTech Index indicates the highest values among the thematic indices. The Artificial Intelligence & Big Data Index has revealed a lower level of association with the MSCI Latin American Index among the overall correlations. Practical implications First, borrowing and lending and mitigating the risk needs to be addressed. Second, financial regulations would deal with market failures and vulnerabilities. Third, people would be expected to access innovative financial services and would be treated fairly with adequate access to payments, credit, insurance, and savings products. Originality The study covers Artificial Intelligence & Big Data Index (IAIQ), Blockchain Index (ILEGR), Disruptive Technology Index (IDTEC), Global Fintech Index (IFINIX). A key contribution of this research is to analyze the growth of Fintech in terms of size, participants, user market growth, and the role of stakeholders and policymakers.

Impact of Financial Technology on Improvement of Banks' Financial Performance

This study investigates the main financial technologies adopted by banks to improve their financial performance. The study population consists of commercial banks listed on the Amman Stock Exchange and Abu Dhabi Securities Exchange, and includes financial information and data from 2012 to 2020. A total of 115 questionnaires, consisting of five questionnaires for each bank, were distributed to the study population in Jordan and the United Arab Emirates. The dependent variable is financial performance, while the independent variable is financial technology (FinTech). Multiple linear regression analysis was conducted to test the hypotheses. The results showed that FinTech has a positive effect on both total deposit and net profits. This study recommends that banks be encouraged to adopt inclusive strategies to attain sustainable development.

Reducing farmers' poverty vulnerability in China: The role of digital financial inclusion

This paper applies exogenous shocks to investigate the impact of digital financial inclusion (DFI) on farmers' poverty vulnerability in China. We find that farmers in highly developed DFI areas are less vulnerable to the poverty trap. The result is robust to various checks, including propensity score matching and difference-in-differences method and the instrumental variable approach. Moreover, we find that income diversification is the possible economic channel through which DFI affects farmers' poverty vulnerability. Further analyses show that DFI has a "targeting” effect on those who are poor and vulnerable, and a synergistic effect by working with medical insurance and informal finance in terms of reducing farmers' poverty vulnerability. Our research findings provide new theoretical insights and useful guidance in enhancing financial inclusiveness and sustainable development in the post-COVID-19 era. © 2023 John Wiley & Sons Ltd.

The Adoption of Robo-Advisory among Millennials in the 21st Century: Trust, Usability and Knowledge Perception

Robo-advisor has become the new personal wealth management and investment method. Nonetheless, certain predicaments are faced by robo-advisor companies as a tech-savvy young group of individuals seems to be less willing to adopt robo-advisory. This study investigates millennials' adoption of robo-advisory in terms of financial knowledge, trust and usability perception in the 21st century to enhance sustainability. This quantitative study focuses on individuals belonging to the millennial generation who were born between 1981 and 1996. The findings indicate that the millennials who possess financial knowledge, as well as perceived usability and trust have a significant positive effect on the willingness to embrace robo-advisory as a tool for wealth management. The higher the financial knowledge of an individual, the more likely they are willing to adopt a robo-advisor. Government may provide appropriate avenues to enhance financial knowledge, and credible and user-friendly platforms with resources to boost the millennials' usage of robo-advisors for their wealth management. With robust artificial intelligence, robo-advisory continues to support users, especially millennials, through three dimensions of sustainable development: environment, society, and economy.

Financial Inclusion for Women in the Informal Economy: An SDG Agenda Post Pandemic

Prior to the Covid-19 pandemic, a gender divide and inequality already existed within the world's economies;the global pandemic exacerbated this further. Many developing countries have been impacted enormously by the pandemic. Also, a sizeable portion of the workforce in these developing countries works within the informal economy, and they are predominantly women who are financially excluded. This study provided a conceptual framework illustrating the place of women in the informal economy and how the pandemic has affected their prospects in contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). Based on the literature on financial inclusion and participation of women in the informal economy, this study provides several policy recommendations within the context of Africa. The study also offers theoretical contributions for academics, students, researchers, gender specialists, activists, financial service providers, and policymakers on the interconnections between gender, financial inclusion, and sustainable development. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021.

From the Editor's Desk

[...]it is quite imperative for the Regulator to allow banks to consider NBFCs and MFIs as channel partners for lending to the people and informal enterprises who need small loans. Dr Arindam Bandhyopadhyay has given a comprehensive description of RBI's new capital adequacy norms that has paved a structured approach for strengthening urban cooperative banks, in his article "Prudential Norms on Capital Adequacy - Primary (Urban) Co-operative Banks (UCBs)". Prof Sanjay Basu has analysed the guidelines given by the RBI in its Master Circular on Basel III Capital Regulations, dated 1st April 2022, in his paper "Basel III Capital Regulation - A Brief Discussion " I am sure the readers will appreciate the perspectives shared by the contributors in the articles and appreciate the relevance of the same in the world of business today.

Financial Inclusion Challenges and Prospects During the COVID-19 Pandemic: Insights from Botswana, Namibia, South Africa and Zimbabwe

Financial inclusion is a process that enables the ease of access, availability and usage of formal financial services for all members of an economy. It is a United Nations Sustainable Develop Goal (SDG) earmarked to alleviate poverty and income inequality. As such, financial inclusion has attracted the attention of many researchers and policymakers. However, the outbreak of the COVID-19 pandemic has brought the whole world to a standstill. It has impacted many facets of the economy. The pandemic has reshaped the financial services sector. Financial inclusion is one facet of the economy that has been affected positively and negatively by the pandemic. This chapter explores the literature on financial inclusion and its challenges and opportunities induced by COVID-19. The chapter further explains the challenges and prospects of financial inclusion due to the COVID-19 pandemic. It concludes by illuminating future research directions. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Bank branch outreach and access to banking services toward financial inclusion: an experimental evidence

PurposeBoth branch and automated teller machine (ATM) are playing a crucial role in banking coverage expansion in India. People prefer to go to an ATM for withdrawal of money rather waiting in a queue for hours at a branch. Without the existence of a full-fledged brick-and-mortar branch, ATM also plays an important role by providing basic banking services. In India, a significant part of the population is excluded from banking access. The present study aims to investigate how the branch and ATM penetration influence financial inclusion.Design/methodology/approachThe study covers the period from 2008–2009 to 2019–2020. With the application of Welch's t-test, a comparative study is being conducted between branch and ATM. Further, with the application of regression analysis, the study analyses how the branch and ATM network expansion influence financial inclusion.FindingsThough in recent times customers prefers to visit an ATM and its growth rate is higher than branches, the study found no significant differences between the growth of branch and ATM. Further, results of regression show both branches and ATMs have significant impacts on financial inclusion.Originality/valueIn micro concept both have a common role in respect of service provided to customers. While in macro concept a list of specific services can be provided through branch level only. This study has a significant role, considering the importance of branches or ATMs and cost of installing a physical branch.

A STUDY ON THE EFFECT OF FINANCIAL INCLUSION ON POVERTY AND ECONOMIC GROWTH

The term 'financial inclusion' means to include all individuals financially, mainly the poor section of the society. The primary objective of this study is to find out whether there is any relation or whether financial inclusion index influences poverty lines of selected 19 countries of Asia (including India) during the pre-pandemic year 2019. This study is based on the statistics provided by the PovcalNet which is a computational tool used by the World Bank in calculating the estimates of the extent of absolute poverty in the world. This study mainly focused on head count ratio (HCR) and poverty-gap of selected Asian countries fall under three different levels of financial inclusion index.

Financial Inclusion or Encampment? Rethinking Digital Finance for Refugees

Humanitarian actors touting financial inclusion posit that access to financial services builds refugees' resilience and self-reliance. They claim that new digital financial tools create more efficient and dignified pathways for humanitarian assistance and enable refugees to better manage their savings and invest in livelihoods, especially during protracted displacement. Our in-depth, repeat interviews with refugees in Kenya and Jordan refute this narrative. Instead, self-reliance was hindered primarily by refugees' lack of foundational rights to move and work. Financial services had limited ability to support livelihoods in the absence of those rights. The digital financial services offered to refugees under the banner of ‘financial inclusion' were not mainstream services designed to empower and connect. Instead, they were segregated, second-class offerings meant to further isolate and limit refugee transactions in line with broader political desires to encamp and exclude them. The article raises questions about the circumstances in which humanitarian funding ought to fund financial service interventions and what those interventions are capable of achieving.