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The present study aimed to provide an understanding of the roles of community-based financial service organizations (i.e. rotating savings and credit associations [ROSCAs] as institutional pillars in facilitating low-income, unbanked consumers’ access to informal financial services).

Semi-structured interviews were conducted with 39 low-income, unbanked consumers participating in ROSCAs in Pakistan, where only 21% of adults have a bank account and almost four out of five individuals live on a low income. The obtained data were analyzed using the thematic analysis technique.

ROSCAs’ regulatory, sociocultural and cognitive aspects facilitate low-income, unbanked consumers’ utilization of informal financial services owing to their approachability by, suitability for, and fairness to such consumers. Thus, they promote such consumers’ financial inclusion.

Low-income consumers are mostly unable to access formal financial services due to the existing supply- and demand-side impediments. Understanding ROSCAs’ institutional functioning can help formal financial service providers create more transformative financial services based on the positive institutional aspects of ROSCAs to enhance poor consumers’ financial inclusion and well-being.

The inclusion of low-income, unbanked consumers in formal banking services will help them better control their finances.

Many low-income, unbanked consumers in developing countries utilize informal financial services to meet their basic financial needs, but service researchers have rarely investigated how informal financial institutions function. The present study showed that ROSCAs, as informal institutions, meet low-income, unbanked consumers’ personal, social and financial needs in a befitting manner, which encourages such consumers to use the financial services offered by ROSCAs.

The study aims to discern the primary obstacles confronted by the implementing agencies in their efforts to foster financial inclusion through the “Pradhan Mantri MUDRA Yojana” (PMMY).

To collect primary data, a semi-structured questionnaire was developed. Around 120 loan officers from the implementing agencies (Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs) and Micro- Finance Institutions (MFIs)) of Haryana were randomly selected to fulfill the objectives. To categorize the perceived problems into discrete factors, the “factor analysis” technique was employed. The scales were then regressed on factors linked to the demographic characteristics of the loan officers to validate the hypotheses.

The study highlighted the primary obstacles impeding the advancement of financial inclusion, which encompass a range of factors. These include challenges in management, infrastructure, politics, finance and technology. Furthermore, the study established the association of the explanatory variables, namely gender, age, educational qualification, location and experience of the officers, with the extracted constraints. Notably, the experience of loan officers emerged as the most influential variable contributing to the promotion of financial inclusion through the scheme.

The current body of literature lacks any empirical investigation focusing on the perspectives of the implementing agencies regarding the challenges they encounter in advancing FI. Given the significance of FI in India, where access to formal financial services remains a critical issue, this research adds value by addressing the gaps in understanding the problems encountered.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0462

This study aims to expand the theory of planned behaviour (TPB) to understand determinants of financial inclusion participation behaviour through the mediating effect of Islamic finance product (IFP) adoption.

A quantitative research design was deployed using primary data from a survey conducted within the Muslim-dominated regions in Nigeria, which was analysed using partial least squares structural equation modelling.

It was found that the original TPB variables, attitude, subjective norms, perceived behavioural control (PBC) and behavioural intention have strong positive influences on financial inclusion participation behaviour, however, among the new variables, government support and IFPs adoption directly influence, while awareness and access to banking and digital channels were not. Furthermore, IFPs adoption significantly mediates the relationship between attitude, behavioural intention, government support and access to banking and digital channels and financial inclusion participation, but it failed to mediate that of subjective norms, PBC and awareness.

These findings imply the need to establish more Islamic financial institutions or conventional banks to introduce IFPs in Muslim-dominated regions in Nigeria, as such products are desirable in expanding financial inclusion. While such is being pursued, policymaking bodies responsible for financial inclusion should design appropriate programmes to create awareness of IFPs for expanding financial inclusion.

To the best of the authors’ knowledge, this study could be the first to expand the TPB by integrating IFP adoption as a mediator within the context of financial inclusion participation as well as the incorporation of awareness, government support and access to banking and digital channels as additional variables.

This study aims to gain insight into the motivations behind the decision to use high-cost payday loans by households who possess mainstream credit and to determine whether this behavior has changed over time.

Using data from Statistics Canada’s Surveys of Financial Security, probit models are used to examine the sociodemographic and financial indicators associated with payday loan use.

The analysis uncovers the sociodemographic and financial characteristics of payday loan-user households with access to lower-cost short-term loans. The findings indicate that the likelihood of payday loan use has risen over time. Additional analysis reveals that indicators of financial instability are positively associated with payday loan use among this group.

This research highlights the dichotomy of payday loan users and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.

This research highlights the distinguishing sociodemographic and financial characteristics of payday loan user households and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.

This is the first study, to our knowledge, to focus analysis on payday loan use of those with access to lower-cost short-term credit alternatives in Canada and to include measures of financial instability in the analysis. This research is timely given the current economic environment of high interest rates and high levels of household debt.

Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare.

With the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity.

We reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare.

This study offers valuable insights into China’s rural financial inclusion progress, highlighting potential barriers and guiding government actions.

This paper examines the relationships between bank switching and both customer vulnerability and consumer-oriented policies (financial education and disclosure practices).

The analysis employs microdata from the Special Eurobarometer on Financial Products and Services, for 24 European nations. It carries out a probit estimation on the factors explaining propensity of bank switching, focusing on three characteristics associated with customer vulnerability: an advanced age, low educational attainment and residence in a rural or a relatively poor region.

The authors report that the probability of bank switching is significantly lower for three groups of vulnerable customers: the elderly, the less educated and those living in deprived regions. Further the authors identify that national financial education policies and disclosure practices have no significant effects on bank switching.

Based on these results, the authors propose more targeted policies recognising customers' heterogeneity are required to increase bank switching behaviour.

This paper exploits a unique source of information on bank switching behaviour and customer characteristics across European nations. These data are complemented with information about consumer financial education policies and disclosure practices from the World Bank and geographical, market and regulatory factors at the regional and national levels. The paper contributes to two academic areas. First, it presents further evidence on heterogeneity of bank customer switching behaviour, addressed at improving the understanding of customer vulnerability in banking services. Second, it examines the efficacy of consumer-oriented policies (financial literacy and disclosure practices) in encouraging bank switching.

Concerns on money laundering (ML) and terrorist financing increased, as ML accounted 2%–5% of the global GDP, with Switzerland, the USA, Canada, India and Russia having high laundering rates. Banks were fined over US$320bn in 2008, but money laundering still accounted for 3.6% of global GDP in 2009, thereby indicating the need for effective regimes. Therefore, this study aims to critically analyze the antimoney laundering (AML)/CFT regime of Somalia, identify loopholes in the regime, raise awareness and propose recommendations for regime improvement.

The qualitative research approach is used to compare Somalia’s AML/CFT regime with the corresponding regime of Malaysia through the black letter method combined with document analysis. Malaysia is selected as a benchmark for two reasons: firstly, it is an Islamic country like Somalia, and secondly, Malaysia has complied with integrity-related standards.

This study revealed that an impactful AML/CTF regime is reached by closing loopholes in the law, reevaluating and improving regulatory agencies and measures, facilitating formal financial services and collaborating with regional and international standard setters. According to the results, Somalia AML/CFT regime is counterproductive in criminalizing offenses; regulating digital currencies and mobile money, disclosures and nonfinancial business and provisions; and governing training requirements for regulatory agencies and financial institutions.

To the best of the author’s knowledge, this paper is the first of its kind in the study of Somalia’s regime building. Also, this study incorporates rich scholarly discourse on effective regime building.

The purpose of this paper is to analyse the determinants of financial inclusion among women-owned informal enterprises in India.

The study is based on a primary survey of 321 informal enterprises. The data has been collected through a structured questionnaire. A chi-square test has been used to examine the significant association between the characteristics of informal enterprises and their owners and financial inclusion. A logistic regression model has been developed to analyse the determinants of financial inclusion among women-owned informal enterprises.

A significant and negative association has been found between business duration and entrepreneurs’ experiences with financial inclusion. In addition, the chi-square test shows a significant association between resource capability, use of ICT by enterprises and financial inclusion. Further, logistics regression shows that duration of business, entrepreneurial experience, resource capability in terms of machinery and equipment use, and ICT are significant determinants of financial inclusion among women-owned informal enterprises.

There are several practical implications for national policymakers and other stakeholders, such as banks and international bodies working on financial inclusion. It is suggested that while designing the policy for financial inclusion among woman-owned informal enterprises, it should ensure that experience and older woman entrepreneurs are included in financial inclusion schemes.

There has been very few research on financial inclusion in woman-owned businesses. However, no research has been conducted on the financial inclusion of women-owned informal businesses. This study fills a gap by investigating the factors that influence financial inclusion in women-owned informal businesses.

This study aims to examine the effect of corporate cash holdings on financial performance. Additionally, it investigates the moderating effect of corporate governance and family ownership on the link between corporate cash holdings and financial performance.

This study uses secondary data regarding the sample of 81 firms listed in the Karachi Stock Exchange (KSE) 100 index from 2011 to 2020. The present study applies the system generalized method of moments (GMM) to estimate the dynamic financial performance models.

The findings reveal that corporate cash holding is significantly positively linked with financial performance. Further, the findings indicate that the board size and chief executive officer (CEO) duality strengthen the association between cash holdings and financial performance, whereas CEO gender and family ownership weaken the positive effect of cash holdings on financial performance. Furthermore, the findings suggest that Covid-19 significantly negatively affected the financial performance of Pakistani firms.

The findings have several policy implications. First, policymakers need to increase the board of directors' role in observing the firms' cash-holding behaviour. Policymakers may also formulate policies providing stronger protection for minority shareholders from majority shareholders.

To the best of the authors' knowledge, this study is the first to examine how corporate governance and family ownership influence the link between corporate cash holdings and financial performance in the context of Pakistan.

In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation and the business model revolution. This paper aims to investigate whether and how the application of AI enhances the ESG performance of enterprises.

This study uses panel data from Chinese A-share listed companies spanning the period from 2012 to 2022. Through a multivariate regression analysis, it examines the impact of AI on the ESG performance of enterprises.

The findings suggest that the application of AI in enterprises has a positive impact on ESG performance. Internal control systems within the organization and external information environments act as mediators in the relationship between AI and corporate ESG performance. Furthermore, corporate compliance plays a moderating role in the connection between AI and corporate ESG performance.

This paper underscores the pivotal role played by AI in enhancing corporate ESG performance. It explores the pathways to improving corporate ESG behavior from the perspectives of internal control and information environments. This discussion holds significant implications for advancing the application of AI in enterprises and enhancing their sustainable governance capabilities.