nep-mfd New Economics Papers
on Microfinance
Issue of 2016‒01‒18
four papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. ICT for Financial Inclusion: Mobile Money and the Financial Behavior of Rural Households in Uganda By Ggombe Kasim Munyegera; Tomoya Matsumoto
  2. Are financial cooperatives crowded out by commercial banks in the process of financial sector development? By Anaïs Périlleux; Annabel Vanroose; Bert D'Espallier
  3. Employee Turnover in MFIs: Reasons & Remedies By Sk. Mahmudul Alam, Mahmud

  1. By: Ggombe Kasim Munyegera (National Graduate Institute for Policy Studies); Tomoya Matsumoto (National Graduate Institute for Policy Studies)
    Abstract: Over 35 percent of the adult use mobile money services in 2014, just five years since its inception in Uganda. Using household survey data covering 820 rural households, we examine the effect of this financial innovation on their financial behavior. We find that adopting mobile money services significantly increases the likelihood of saving, borrowing and receiving remittances due to reduction in transaction cost. The amount of savings, credit and remittances is also significantly higher among user households than non-users. To illustrate the importance of service proximity, we show that reducing the distance to the nearest mobile money agent boosts the frequency of using mobile money services. Our results are robust to specification changes and alternative explanations.
    Date: 2015–12
  2. By: Anaïs Périlleux; Annabel Vanroose; Bert D'Espallier
    Abstract: This paper investigates whether financial cooperatives are crowded out by commercial banks in the process of financial sector development. We use a self-constructed database (1990-2011) of financial cooperatives in 55 developing countries. Our empirical results are threefold. First, financial cooperatives tend to reach more members in countries where the commercial banking sector is weak. This validates their role as a market failure solution. Second, in the process of commercial bank expansion, financial cooperatives run the risk of being crowded out. Third, financial cooperatives seem to benefit from some kind of bank presence, especially as far as savings mobilization is concerned.
    Keywords: Financial cooperatives; Microfinance; Competition; Crowding out; Financial Sector Development
    JEL: G21 L31 O16 P13
    Date: 2016–01–07
  3. By: Sk. Mahmudul Alam, Mahmud
    Abstract: At present day’s employee turnover is one of the challenging issues in microfinance sector of Bangladesh. Excessive turnover is not only pricey, but it can create a bad reputation in the MFI sector and among the job seekers. Excessive turnover may be harmful to an MFI's productivity if experienced and efficient employees are often departing and the employee encompasses a high percentage of beginners. The impact of turnover has received substantial attention by the senior management and human resources professionals of the sector. So it is time demand to know the reasons those influence employee turnover and also know the remedies how we can reduce the rate of employee turnover rate. So an attempt was taken by this study to know the reasons and remedies of employee turnover in microfinance sector of Bangladesh. The study found that the average turnover rate of permanent employees in nine reputed MFIs in 2012, 2013 and 2014 were respectively 13.79%, 12.74% and 10.96% and the average turnover rate of contractual employees in seven MFIs in 2012, 2013 and 2014 were respectively 25.43%, 21.92% and 15.93%. The major reasons for employee turnover are: salary and other financial benefit are comparatively less than other MFIs; terminated for corruption or fraudulent; terminated for violation of service rules; no overtime financial benefit; excessive working load; transfer to distant district from home district; for family reason; not having promotion after being deserve it etc. The key remedies for reducing employee turnover are: should fix up a competitive salary and other financial benefit harmonizing with the other competitor MFIs; promotion and salary increment policy should be transparent; should have provision of proper reward for good work and proper punishment for ill work in MFIs; should have financial benefit for overtime work; having automation and online network facilities in all branches; to provide necessary job related training to a new recruited employee; having facility of leave encashment; having provision of financial support or loan for employee at the time of his emergency, transfer to nearest district from home district etc.
    Keywords: Employee Turnover, MFIs, Bangladesh, Turnover Rate, Reasons, Remedies
    JEL: G21 J28 M52
    Date: 2015–10–31
  4. By: B. Madhusudhana
    Abstract: The society is male dominated and finance is also controlled by men. When financial freedom is detained from women then their social and political freedom are also detained. Governments around the world gave many social programs especially for women to develop but male dominated society has given a check in reaching these programs to women. The major hurdles for any women to develop economically are education, participation in economic activity and finally return. Micro-finance through SHGs made a small change in improving financial condition of the women. The sample respondents of the present empirical study accepted that their financial condition is improved but it is not enough. Even after becoming the members of SHGs, women could not affordable to durables. They exercised household decisions in festivals and purchases. It may be concluded that women require encouragement at family level and opportunities at society level in order to develop economically. Key words: SHGs, microfinance, women empowerment and poverty alleviation
    Date: 2015–09

This nep-mfd issue is ©2016 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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