nep-cob New Economics Papers
on Community banking and credit unions
Issue of 2026–06–15
four papers chosen by
Bernardo Bátiz-Lazo, Northumbria University


  1. Perspectives on the Economy and Financial Landscape By Susan M. Collins
  2. Decentralised Finance as a Catalyst for Financial Inclusion: Evidence from Emerging Economies By Ali, Amjad; Butt, Mohammad Hamza; Senturk, Ismail
  3. Digital Payments, Financial Inclusion and Rural Development in India: Evidence from UPI Adoption. By Bagde, Rakshit
  4. Exploring the Causes of Inactive Bank Accounts in India: Evidence from the Global Findex Survey By Kumar, Atul; Nag, Biswajit

  1. By: Susan M. Collins
    Abstract: Federal Reserve Bank of Boston President & CEO Susan M. Collins shared perspectives on the economy and monetary policy, regional banking conditions, and payments innovation during the Boston Fed’s 24th Annual Regional & Community Bankers Conference. She also participated in a Q&A discussion following her remarks.
    Keywords: monetary policy; economic conditions; uncertainty; banking conditions; banking supervision; inflation (finance); labor market; labor demand; tariffs; productivity
    Date: 2025–11–12
    URL: https://d.repec.org/n?u=RePEc:fip:fedbsp:103366
  2. By: Ali, Amjad; Butt, Mohammad Hamza; Senturk, Ismail
    Abstract: Decentralised finance has emerged as a transformative force in the financial sector, offering innovative solutions to enhance financial inclusion for underbanked populations. This study examines the role of decentralised finance as a catalyst for inclusive finance, focusing on its potential to deliver accessible, low-cost financial services via blockchain technology and smart contracts. Utilizing a mixed-methods approach, the research investigates the adoption, benefits, and challenges of decentralised finance in Sub-Saharan Africa, Southeast Asia, and Latin America. Quantitative analysis shows a strong correlation between decentralised finance usage and improved access to savings, credit, and remittance services. Qualitative results reveal key themes, including perceived autonomy, trust concerns, knowledge barriers, and infrastructure challenges, which differ across regions. For example, Latin American users adopt stablecoins to hedge against inflation, while Southeast Asian users rely on decentralised finance for remittances and play-to-earn gaming. Nevertheless, obstacles such as asset volatility, security risks, regulatory uncertainty, and low digital literacy impede widespread adoption. The study highlights the importance of tailored interventions, including user-friendly platforms, region-specific education, and robust infrastructure, to unlock the full potential of decentralised finance. Theoretical frameworks such as institutional theory and financial inclusion frameworks offer insights into the socio-technical factors influencing adoption. The findings call for a balanced strategy that integrates technological innovation, regulatory clarity, and community engagement to achieve equitable financial inclusion.
    Keywords: Decentralised Finance, Financial Inclusion, Underbanked Population
    JEL: E6 G20
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:128755
  3. By: Bagde, Rakshit
    Abstract: Digital payment technologies have significantly transformed financial systems across emerging economies. In India, the rapid expansion of the Unified Payments Interface (UPI) has reshaped payment infrastructure and expanded access to financial services. Introduced by the National Payments Corporation of India under the supervision of the Reserve Bank of India, UPI has enabled seamless real-time transactions between bank accounts through mobile devices. This study examines the relationship between digital payment adoption, financial inclusion, and rural development in India during the period 2016–2024. Using secondary data from official financial databases and national payment statistics, the research applies panel regression models and diagnostic tests to evaluate the impact of UPI transaction growth on rural income and financial access indicators. The results indicate that digital payment expansion is significantly associated with improvements in financial accessibility and rural economic outcomes. The findings highlight the role of digital payment infrastructure in promoting inclusive economic growth and strengthening financial ecosystems in developing economies.
    Keywords: Digital payments, UPI, Financial Inclusion, Rural Development, Fintech, India.
    JEL: G21 G28 G29
    Date: 2026–01–01
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:128929
  4. By: Kumar, Atul; Nag, Biswajit
    Abstract: While India has made significant advancements in financial inclusion, many citizens still hold inactive bank accounts. The study investigates the barriers to financial inclusion, focusing on difficulties in maintaining active bank accounts using insights from the 2021 Global Findex database. Latent Class Analysis (LCA) was applied to classify individuals into three distinct groups based on the barriers to active banking. Results show that some face structural challenges like limited access, low income, and digital illiteracy while others consider banking unnecessary. A third group emerged showing distrust towards banks leading to disengagement. The findings highlight the need for targeted policy interventions tailored to each group’s challenges. This is crucial as we envision a Digital India, with broader use of formal banking, digital payments, promoting financial literacy and inclusion for the underserved. Reviving inactive bank accounts and addressing the root causes of inactivity are keys to reducing gaps in financial inclusion.
    Keywords: Financial Inclusion, Inactive Bank Accounts, Latent Class Analysis, Global Findex
    JEL: C38 D14 G21
    Date: 2025–06–20
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:129012

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