THE ROLE OF SHARIA FINTECH IN IMPROVING HALAL FINANCIAL INCLUSION IN MSMES IN INDONESIA

The revolution of Islamic financial institutions in technology has become a must because of the progress of technology and information. Collaboration with financial technology (fintech) is expected to encourage the role of sharia-based fintech lending and other sharia fintech in developing the halal product industry in Indonesia. This article aims to explain the role of Islamic fintech in increasing financial inclusion for halal MSMEs in Indonesia. A literature review is a research method. The results obtained are the role of the application of Islamic fintech in increasing financial inclusion by providing access to financing for MSMEs engaged in the halal industry, providing convenience for MSME actors in accessing various types of Islamic bank financial services and encouraging equitable access to public finances that have not been reached by financial institutions, formal and domestic halal industry players. In Indonesia, fintech has contributed to the National Strategy for Financial Inclusion

Kajian Terhadap Peran Bank Perkreditan Rakyat Dalam Upaya Peningkatan Finansial Inclution Di Indonesia

Today conditions that a lot of people, especially the small and SMEs entrepreneurs who do not understand how to get the services from rural bank. In connection with these conditions, the maximumrole  of Rural Banks in increasing financial inclusion in Indonesia. Until now, rural banks have constraints in increasing its role in financial inclusion in Indonesia. As the Information Technology Rural Banks are still low and the development of information technology is still slow, Mostly rural banks had the capital deposited is relatively small, Overhead costs are high that lending rates high, Number of branch offices as well as cash that is still little, Quality and quantity Rural Bank board is still low, Governance Rural Banks are still low. The results showed that rural banks need to fix these flaws and the financial services authority should also make regulations that support rural banks in increasing financial inclusion in Indonesia. Keywords: Financial Inclusion, Rural Banks, SMEs

Characteristics of Financial Technology as Financing Alternative Capitalization of Medium Small-Medium Enterprises (MSME)

Characteristics of Financial Technology as a Financial Institution that uses information technology to provide financial solutions by prioritizing compliance with the principles of prudence and risk management. The characteristics of Financial Technology institutions are getting a loan quickly; Makes Payment Easier; Make Loan Payments without Additional Fees. Peer to Peer Lending (P2P lending) system in providing financial services is done through information technology based. The financial services institution Peer to Peer Lending (P2P Lending) is a financial technology financial institution (Fintech). Financial Technology (Fintech) as a Literacy Source for Financing Micro, Small and Medium Enterprises; Financial Technology (Fintech) As a Facilitator in MSME Development; Financial Tecnology (Fintech) as a driver for Micro, Small and Medium Enterprises to Increase National Financial Inclusion. The Role of the Financial Services Authority (OJK) and the Indonesian Joint Funding Fintech Association (AFPI) As Regulations and Oversight of Financial Technology Institutions (Fintech) in Indonesia

The nexus between social capital and household investment among financially included youth in Kenya

Financial inclusion is a poverty reduction tool and many economies have taken it up as a national agenda. To meet the expected levels of financial inclusion, governments have worked with financial intermediaries to reach the expected target group; the unbanked poor. As per financial intermediation theory, the role of financial intermediaries is to reduce information asymmetry in the financial system. To enhance financial inclusion, many countries and financial institutions have embraced Information Communication Technology (ICT). ICT is recognized as a tool that has worked greatly towards enhancing sharing of information at a low-cost and thus helped in improving financial inclusion. Though many countries have achieved high levels of financial inclusion through ICT, the levels of poverty have not changed. The purpose of this study was to find out the relationship between ICT, financial intermediation, and household investment. Study methodology was a review of the literature on financial inclusion, financial intermediation, ICT and household investment. The study noted that ICT is helping in financial intermediation and thus more people can access financial services. Unfortunately, the levels of ICT capability among the poor is low, and in that case, the poor are not able to use financial services offered through ICT platforms to undertake household investment. This is the reason as to why, despite the high levels of financial inclusion, the poor remains poor. This study recommends that the government make sure that the levels of ICT among the populace is high. Financial institutions should provide financial services with more user-friendly ICT platforms.peer-reviewe

Tracing mutations in neoliberal development governance : "fintech", failure, and the politics of marketization

This article interrogates recent policy pronouncements around the promotion of emerging financial technologies (fintech) as means of enabling financial inclusion. It is argued that situating this emergent ‘turn to technology’ in the context of a longer-running pattern of failed efforts to promote the development of financial markets for the poor in the Global South offers us a useful lens on the dynamics of neoliberalism. The article develops this analysis by drawing together interlinked discussions of ‘neoliberal reason’, highlighting the central role played by the diffusion of market institutions in neoliberal projects with Marxian discussions highlighting the crucial underlying role of labour in enabling the operation of markets. In this context the appeal to ever-more fine-grained information with which to allocate credit underlying the turn to technology can both be read as yet another attempt to ‘re-engineer’ the market, and also seen as a doomed project. Empirically, this argument is fleshed out through an engagement with key framework documents around financial inclusion and technology from the World Bank and G20

The Role of Fintech Payment Instruments in Improving Financial Inclusion

This study examines the role of Fintech payments instruments in evolving accounts ownership as- a master indicator of financial inclusion; to determine if their effectiveness differs according to the different income levels of countries. The sample of the study consists of a panel of twenty-two countries over the period 2010-2020. The database is gathered from the Global Findex; 2021 edition of World Bank. The account ownerships are regressed on Fintech instruments using (FMOLS) method. The results had shown a significant effect of digital remittances, debit and credit cards; and macroeconomic indicators on financial inclusion, in high and middle-income countries, indicating that Fintech payment instruments had been accelerated financial inclusion, but with different levels due to the variation in technological developments and low level of financial literacy. An insignificant effect of the S&P indicator across varying income countries had shown the need for more attention to Fintech and financial literacy to accelerate financial inclusion. In addition to that, countries should work to develop and strengthen of the communication and information infrastructure especially, in developing countries, in order to activate the role of financial technology

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

Purpose: The main objective of this paper is to determine empirically the impact of financial inclusion and Information Communication Technology (ICT) on tax performance in Sub-Saharan African countries; determine the extent to which the elements of financial inclusion have influenced tax performance of countries in Sub-Saharan Africa; and examine the role technology plays in impacting the performance of taxes in Sub-Saharan African countries.   Theoretical Framework: The existing theories that serve as a roadmap for the development of this study are Theory of Digital Diffusion and Theory of Margins. Digital transformation has an important impact on the operations and systems of every economy, which often triggers a positive effect on taxes. Diffusion innovation theory was initiated by Rogers in 1962. The Theory of Margin on the other hand, is a theoretical school that gives validity to the impact of financial development on product output. It suggests that more access to financial services and products is vital for high output and economic advancement.   Design/Methodology/Approach: The population considered in this study was 48 sub-Saharan African Countries from the period of 1999 to 2019. The methods used for the analysis consists of the descriptive and correlation analysis on the identified variables and a creation of financial inclusion index using the Principal Component Analysis to deal with multiclonality challenge amongst the financial inclusion proxies, it also adopted the two-staged least square estimation technique for the empirical analysis.   Findings: The study reveals inter alia that the variables for financial inclusion and ICT proxies are overwhelmingly positive and significantly impact on the tax performance (i.e., total tax revenue and the non-resource tax revenue as percentages of GDP), in sub-Saharan Africa and that the financial inclusion index has positive effect on tax performance in  sub-Saharan Africa. We also observed that there   is a positive relationship between technology and tax performance in sub-Saharan Africa.   Research Practical & Social implications: Policies should be formulated to engender enhancement of technology and more investment should be allocated to technology as it is discovered to drive financial inclusion and promotes tax revenue mobilization. In general, the findings indicate that policies are needed to engender an enhancement of technology and more investment should be channeled to technology as it affects financial inclusion and by logical extension, the promotion of tax revenue mobilization.   Originality/value: The challenge of tax implementation can be directly ascribed to an ineffective tax system.  A tax management that is of high in superiority, helps to make the tax mobilization process more transparent and efficient, and also reduce the level of shadow economy, which main feature is non- remittance or payment of tax. This study reveals that a tax administration system can only operate effectively with the use of modern information technologies

How does financial inclusion affect environmental degradation in the six oil exporting countries? The moderating role of information and communication technology

Progress in financial inclusion has played a major role in economic development and poverty reduction. However, the environmental impact of financial inclusion calls for urgent implementation of environmental strategies to mitigate climate change. Financial inclusion forces the policies of developed countries to advance and not affect the present and future development of developing countries. Therefore, the current study aims to investigate the direct effects of information and communication technology (ICT) usage on environment as well as its moderating role on the association between financial inclusion and environmental degradation for six oil exporting countries (United Arab Emirates, Saudi Arabia, Russia, Kuwait, Canada, and the United States), using annual panel data from 1995 to 2019. We also analyze the validity of the environmental Kuznets curve (EKC) phenomenon for the entire sample, as well as the role of energy consumption and population. Employing the Method of Moments Quantile Regression (MMQR) with fixed effects, this study supported the existence of EKC phenomenon here as linkage amid human development index and carbon intensity. We find that energy consumption significantly increases carbon intensity. The empirical results showed that the application of internet- and mobile use as indicators of ICT usage lead to environmental preservation in the six oil exporting economies. Also, we observe that financial inclusion has mitigating effects on pollutant emissions, contributing to environmental preservation. Interaction between ICT usage and financial inclusion jointly reduces carbon intensity in all quantile distributions. A robustness check using an alternative proxy of the financial inclusion also confirms that ICT usage significantly and negatively moderates the association between financial inclusion and carbon intensity. Based on the findings of this study, the selected oil exporting countries should integrate financial inclusion with environmental policies to reduce carbon intensity. Copyright © 2022 Damrah, Satrovic and Shawtari

Information Communication Technology Adoption in Moroccan Small and Medium Enterprises

Information Technology plays an important role in improving organizational competitiveness and as a result the economicgrowth of a country, particularly within the emerging context. This research in progress examines the extent of informationcommunication technology (ICT) skills, use and adoption among managers of small and medium enterprises (SMEs) inMorocco. The framework for this analysis is the original Technology Acceptance Model (TAM) with the inclusion of fouradditional variables namely: subjective norm, computer experience, perceived financial cost and personal innovativeness

Financial inclusion as a source of organizational learning for banks: Exploratory evidence from India

This study investigates the role of organizational learning in financial inclusion in India using qualitative research methods. Financial inclusion refers to the appropriate and affordable access to financial products and services and is targeting the part of the population that is unbanked or underbanked. In India, the government has formulated financial sector goals and policies in the last years to alleviate the situation of that part of the population. The study specifically investigates the private banking sector in India as a key protagonist in implementing those policies. The study finds that private banks operate in an overall context that is beneficial towards organizational learning. It identifies the tension between exploration and exploitation as the core of the organizational learning process in financial inclusion. Areas in which organizational learning occurs are related to products and customers, technology, information processing, monitoring and internal/ external training. In those areas, knowledge creation, transfer and retention drive the development of, e.g., new products, internal processes, and guidelines