Ai Solutions for Developmental Economics: Opportunities and Challenges in Financial Inclusion and Poverty Alleviation

According to the National Development Plan (NDP) Vision 2030 of South Africa, South Africa aims to increase financial inclusion for everyone to 90 percent by 2030. However, a few challenges have arisen over the course of the years after the drafting of the NDP Vision 2030. This article will first trace some of these challenges under the category of practices that diminish the integrity of banks in South Africa. These challenges include banking fraud (phishing and vishing), automated teller machine (ATM) bombings and cash in transit heists (CITs), the unfair treatment of banking customers as well as the greylisting of South Africa by the Financial Action Task Force (FATF) resulting in failure to fully complying with international standards regarding the prevention of money laundering (ML), terrorist financing (TF) and proliferation financing (PF). It is also apparent that there are no clear guidelines or protocols that accompany the NDP Vision 2030 to comprehensively detail how the 90 percent financial inclusion target for all people in South Africa will be attained. In addition to this, the NDP does not provide any consequences to the stakeholders responsible for the promotion of financial inclusion and/or any exigency plans should 90 percent fail to be achieved by 2030. Undoubtedly, the above-mentioned challenges to financial inclusion place doubt on the achievement of 90 percent financial inclusion by 2030. This article aims to critically investigate these challenges that may have the potential to hinder the optimum achievement of financial inclusion in contemporary South Africa. Furthermore, this article will critically analyse the relevant legislation as well as related policies and regulations aimed at promoting financial inclusion in South Africa. Ultimately, the article will propose measures which may be useful in attaining 90 percent financial inclusion in South Africa by 2030 as per the NDP Vision 2030.

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Evaluating Financial Inclusion in Peru: A Cluster Analysis Using Self-Organizing Maps

Talavera,

Maehara,

Benites

et al. 2024

JRFM

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This study evaluates financial inclusion in Peru through self-organizing maps. Financial inclusion is a multidimensional issue of great importance on the global agenda and continues to concern various actors internationally. In this context, the objective is to assess the financial inclusion situation in the country and determine how self-organizing maps can complement standard models for this purpose. The empirical aim is to demonstrate how this technique can help identify priority areas and vulnerable groups, thus facilitating decision-making and policy design to improve the access to and use of financial services among Peruvian consumers by finding clearly defined profiles that allow the identification of potential problems within each category. This makes it possible to create customized strategies for each group, such as addressing the financial inclusion barriers faced by rural residents, compounded by low income and educational levels.

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Ai Solutions for Developmental Economics: Opportunities and Challenges in Financial Inclusion and Poverty Alleviation

Cited by 5 publications

References 38 publications

A geospatial clustering algorithm and its integration into a techno-economic rural electrification planning model

A geospatial clustering algorithm and its integration into a techno-economic rural electrification planning model

South Africa Aims to Increase Financial Inclusion to 90 Percent by 2030: Plausible or a Mere Ideal?

Evaluating Financial Inclusion in Peru: A Cluster Analysis Using Self-Organizing Maps

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