Measuring usage of formal financial services as a proxy for financial inclusion

Mohammed, Fatima; Barrowclough, Michael; Kibler, Michelle L.; Boerngen, Maria A.

doi:10.1108/afr-09-2019-0096

Cited by 12 publications

(7 citation statements)

References 40 publications

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“…This measure of financial inclusion is different from those used in previous studies in a number of ways. First, unlike the narrow measure of financial inclusion that is conceptualised using the ownership of bank account only or indicators representing a single dimension (Atiase et al , 2019; Mohammed et al , 2020), this approach uses 13 binary indicators of financial inclusion which are grouped under four main dimensions (i.e. ownership of financial products, use of financial product, access to credit and receipt of remittance).…”

Section: Methodsmentioning

confidence: 99%

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Peprah

Koomson

Sebu

et al. 2020

AFR

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PurposeDoes financial inclusion matter for productivity among smallholder farmers? The authors answer this question by using the sixth and seventh rounds of the Ghana Living Standard Survey to examine the extent to which financial inclusion affects productivity among smallholder farmers in Ghana.Design/methodology/approachThe study uses a pooled data of the 6th and 7th rounds of the Ghana Living Standard Survey which are national representative data. The authors model an Instrumental Variable (IV) to correct for endogeneity in financial inclusion and a dominance analysis to examine the effects of access to credit, ownership of savings account and insurance product on farmers' productivity.FindingsResults from the study indicate that financial inclusion significantly enhances productivity. Moreover, credit, savings and insurance products influence productivity at various degrees. Thus, expanding the scope of financial services (access to credit, savings and insurance) among smallholder farmers is crucial for inclusive finance and sustainable agricultural production.Practical implicationsThe findings of the study have implications for financial institutions in the design of financial products that the meet the needs of smallholder farmers.Originality/valueSeveral studies have looked at how access to credit influences agricultural productivity in Africa. However, in recent times financial inclusion has been advocated for because it goes beyond mere access to credit. This paper to the best of our knowledge is the first of its kind to examine how financial inclusion could affect agricultural productivity in Ghana.

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Section: Methodsmentioning

confidence: 99%

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Peprah

Koomson

Sebu

et al. 2020

AFR

View full text Add to dashboard Cite

show abstract

“…Previous literature has presented the main vision of financial inclusion as to provide ease of access, availability and usage of FPS at a price that is affordable for the most vulnerable segments of society who are experiencing exclusion from the financial system (Mohammed et al , 2020; Asuming et al , 2018). Our findings suggest that banks in Ghana should continue in their design of an array of FPS, adopt innovative traditional marketing strategies and apply inclusive technologies to reach out to the FVCs.…”

Section: Discussionmentioning

confidence: 99%

Marketing inclusive banking services to financially vulnerable consumers: a service design approach

Ofori-Okyere

Edghiem

Kumah³

2022

JSM

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Purpose To explore how inclusive banking services are marketed to financially vulnerable consumers (FVCs) in Ghana from the perspective of managers. This study aims to explore this under-researched area and contribute towards a transformative service research in the country. Design/methodology/approach This study adopted a multiple case study research approach to analyse six banks, including commercial, development, investment and rural and community banks. Specifically, semi-structured interviews and archival documents were used to collect data from the perspectives of bank managers. Findings The empirical research based on practical and theoretical models shows that Ghanaian banks design an array of financial products and services (FPS), adopt innovative traditional marketing strategies and apply inclusive technologies to reach out to the FVCs. Research limitations/implications The authors conducted this study on six banks in Ghana; thus, service researchers are cautioned when generalising the findings and conclusions in other contexts beyond the country of focus. Practical implications This study offers practical ideas to guide marketers to better understand how banks market their inclusive banking services to FVCs. Social implications This paper provides implications for addressing financial inclusion amongst the “unbanked”, “underserved” and “unserved” collectively known as the FVCs and how Ghanaian banks design FPS to improve service research and well-being outcomes. Originality/value This study provides vital information to policymakers in designing FPS aimed at achieving an inclusive financial system to improve the well-being of FVCs in Ghana.

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“…The World Bank (WB, 2007) indicates that developing countries mostly depend on agriculture for their economic development. However, the existing financing practices of the sector are informal, thereby characterised by limited access to finance (Mohammed, Barrowclough, Kibler & Boerngen, 2020;Martin & Clapp, 2015). The form of informal financing includes lending schemes, moneylenders, loans from other farmers and family members (Mohammed et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Risk Management Practices in Agricultural Financing in Developing Countries: Experience from Selected Commercial Banks in Tanzania

Kessy

2022

Tanzanian Economic Review

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This study examines risk management tools to mitigate agricultural financing risks. The study analyses risks that lenders face, tools for managing the risks and the correlation between agricultural lending and risk mitigation tools. The used data come from a sample of 55 employees from three selected banks, which is analysed using frequency tables and Chi-square. The findings show that banks face production risks in terms of variability in outputs due to drought and diseases. Tools for managing the risks include collateral, appraisal techniques, diversification of agricultural activities, group liability, guarantee/cash deposits, loan structuring and warehouse receipts. The Chi-square test finds a correlation between risk mitigation tools and agricultural lending; hence, mitigation tools enhance lending to the agricultural sector. Therefore, to manage agricultural risks, banks should deploy these tools optimally. Additionally, exposing farmers to free market practices will enable them to cover costs of their operations, and to repay the loans.

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Measuring usage of formal financial services as a proxy for financial inclusion

Cited by 12 publications

References 40 publications

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Improving productivity among smallholder farmers in Ghana: does financial inclusion matter?

Marketing inclusive banking services to financially vulnerable consumers: a service design approach

Risk Management Practices in Agricultural Financing in Developing Countries: Experience from Selected Commercial Banks in Tanzania

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