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on Microfinance |
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Issue of 2024–03–18
four papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | Koefer, Franziska; Bokkens, Amber; Preziuso, Massimo; Ehrenhard, Michel |
| Abstract: | This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives. This is the third paper resulting from a research project on 'Strengthening Financial Inclusion through Digitalisation' (SFIDE), initiated by EIF's Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eifwps:283601 |
| By: | Sara Biancini (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université); David Ettinger (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Baptiste Venet (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We suggest an explanation for the existence of "mission drift, " the tendency for Microfinance Institutions (MFIs) to lend money to wealthier borrowers rather than to the very poor. We focus on the relationship between MFIs and external funding institutions. We assume that both the MFIs and the funding institutions are pro-poor. However, asymmetric information on the effort chosen by the MFI to identify higher-quality projects may increase the share of loans attributed to wealthier borrowers. This occurs because funding institutions have to build incentives for MFIs, creating a trade-off between the quality of the funded projects and the attribution of loans to poorer borrowers. |
| Abstract: | Quand les institutions de microcrédit en faveur de la lutte contre la pauvreté favorisent les emprunteurs plus riches - une histoire d'aléa de moralité. Nous proposons une explication à l'existence de la « dérive de la mission », la tendance des institutions de microfinance (IMF) à prêter de l'argent à des emprunteurs plus aisés plutôt qu'à des emprunteurs très pauvres. Nous nous concentrons sur la relation entre les IMF et les institutions de financement externe. Nous supposons que les IMF et les institutions de financement sont en faveur de la lutte contre la pauvreté. Toutefois, une information asymétrique sur l'effort choisi par l'IMF pour cerner les projets de meilleure qualité peut augmenter la part des prêts attribués aux emprunteurs plus aisés. Cela s'explique par le fait que les institutions de financement doivent mettre en place des mesures incitatives pour les IMF, créant ainsi un compromis entre la qualité des projets financés et l'attribution de prêts aux emprunteurs plus pauvres. |
| Keywords: | loans, Microcredit, Institutions |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04442586 |
| By: | Abounabhan, Mary; Diouf, Awa; Santoro, Fabrizio; Sakyi-Nyarko, Carlos; Scarpini, Celeste |
| Abstract: | This study investigates the intricate dynamics surrounding the implementation and reception of mobile money taxes, focusing on Ghana as a case study. Consumer-level mobile money taxes, particularly controversial, have sparked large-scale protests, prompting policy revisions in various countries, including Uganda, Cote d'Ivoire and Benin. Ghana’s electronic transfer levy (e-levy) not only followed this trend of public dissent, but also triggered the country’s first budgetary rejection since 1981. The particularly strong reactions, followed by two rounds of revisions, makes understanding what lies behind public perceptions especially important to inform the ongoing debate within Ghana and the region. |
| Keywords: | Finance, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:idq:ictduk:18236 |
| By: | Ozili, Peterson K |
| Abstract: | This chapter examines the role of embedded finance in increasing financial inclusion. The author shows that embedded finance increases financial inclusion by changing the way banked adults, unbanked adults and SMEs interact with financial services. Embedded finance provides greater access to finance for underserved adults and businesses and generates revenue for embedded finance service providers and banks, thereby presenting a win-win opportunity for both the users and providers of embedded financial services. |
| Keywords: | Financial inclusion, embedded finance, embedded payments, unbanked adults, poverty. |
| JEL: | I30 I31 I38 I39 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:120155 |