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• Crowdfunding expands access to capital to more borrowers. • More vulnerable borrowers, however, remain underserved. • We do not see an improvement in interest rates. • Our results show that, while digital technologies support organizations in developing countries, other measures should be considered. Pro-social crowdfunding platforms offer a promising path for financial inclusion in developing countries. The literature on crowdfunding lacks evidence of whether and to what extent pro-social crowdfunding platforms fulfil this promise. Employing different techniques to tackle endogeneity, we show that, while crowdfunding platforms expand access to capital to more borrowers, the service to more vulnerable individuals does not improve. We also find that interest rates remain unchanged. Our results allow us to provide recommendations to policymakers regarding the connection between digital technologies like crowdfunding platforms and financial inclusion. [ABSTRACT FROM AUTHOR]

• Fiscal expenditures contribute to enhancing financial stability. • Digital financial inclusion is conducive to enhancing financial stability. • Scientific and technological development level is conducive to enhancing financial stability. The existing literature requires further comprehensive study on the relationship among fiscal expenditure, financial inclusion, and financial stability. This empirical study analyzes the impact of fiscal expenditure and financial inclusion on financial stability using panel data from 31 Chinese provinces (autonomous regions and municipalities directly under the central government) from 2011 to 2022. The study findings suggest that fiscal expenditures, financial inclusion, and technological development all improve financial stability. This study serves as a reference for designing fiscal expenditure measures and improving financial stability in the region. [ABSTRACT FROM AUTHOR]

FinTech lenders offer an opportunity to enhance credit access but may also disrupt traditional banking. This study proposes a theoretical framework for analyzing the net impact of FinTech's entry on access to credit in credit markets dominated by conventional banks. When a FinTech lender enters the market, competition intensifies, which reduces the bank's gain in serving certain customer segments. While FinTech lending can help serve some unattended niches, it may cause the bank to abandon others, leading to an ambiguous or even negative impact on access to credit. • FinTech are Lenders who make extensive use of the latest technology. • FinTech can reach more small businesses due to their alternative technology. • FinTech may stop banks from reaching clients due to higher market competition. • FinTech's entry does not guarantee increased access to credit for small businesses. • FinTech's entry can result even in the reduction of credit for small businesses. [ABSTRACT FROM AUTHOR]

• Regulatory ODP fee reductions lead to positive abnormal returns (CAR) for banks. • Regulatory ODP reductions' positive CAR is higher for banks with high ODP income. • Voluntary ODP fee reductions result in negative CAR for banks. • Voluntary ODP reductions' negative CAR is more pronounced for profitable banks. This study investigates the impact of regulatory and voluntary overdraft protection (ODP) reductions on bank valuations. Using event study methodology and cross-sectional regression analysis, we find that banks have significantly positive cumulative abnormal returns (CAR) as a result of regulatory ODP reductions. The CAR is higher for banks with higher reliance on ODP income. The positive valuation effect diminishes for larger and well-capitalized banks. For voluntary ODP reductions, the valuation effect is negative, and more pronounced among highly profitable banks. The valuation decrease is attenuated for banks with higher capital ratios, and higher betas. These findings highlight the nuanced financial implications of consumer protection activities on bank valuation. [ABSTRACT FROM AUTHOR]

• Digital banking is largely viewed as a catalyst for increasing financial inclusion. • The study explores the barriers to adopting digital banking in an advanced economy. • The constitutive rules of digital banking need to be accepted to secure adoption. • One barrier to adoption is the structure of power relations, simply put – trust. • Second barrier is digital literacy to enable using its technological infrastructure. We explore the barriers that keep people such as the poor and minorities from adopting digital banking even in a developed country such as Israel. Their failure to do so can limit their participation in financial activities. Drawing on institutional theory and focusing on the structure of power relationships and digital literacy, we tested three hypotheses using survey data from 500 participants. Findings indicate that branch relationships and digital illiteracy are obstacles to the adoption of digital banking. We emphasize the need to consider the constitutive rules of digital banking when encouraging its adoption. [ABSTRACT FROM AUTHOR]

• The study explores how social governance impacts family well-being and financial inclusion in China's evolving corporate landscape. • Effective social governance, including ethics and community involvement, enhances family satisfaction and financial accessibility within top-rated Chinese companies. • The interplay between social governance, family welfare, and financial inclusiveness for sustainable progress in China. China has seen significant economic development and transition in recent years. This study explores the interconnectedness of social governance, family well-being, and financial inclusion in the constantly changing Chinese corporate environment. The research seeks to analyze the complex interaction among many elements and their combined impact on social well-being and economic progress. The research focuses on 3000 top-rated Chinese companies between 2015 and 2022. It collects data from these leading institutions and employs the advanced statistical analysis features of STATA 16.0 for thorough examination. This study examines the impact of social governance measures, such as regulatory frameworks, corporate accountability, and community engagement, on family satisfaction and financial inclusiveness in China. The findings indicate a strong and positive relationship between effective social governance and the improvement of both family wealth and financial accessibility in these companies. Companies that place a high value on ethical behavior and involvement in the community often create a more rewarding atmosphere for their employees and stakeholders, resulting in increased levels of satisfaction and overall happiness. Moreover, these behaviors facilitate the expansion of financial inclusion, enabling a broader range of individuals to access financial services and resources effortlessly. The study indicates that China's politicians and corporate leaders must acknowledge the interconnection between social governance, family well-being, and financial inclusion. [ABSTRACT FROM AUTHOR]

• Digital financial literacy is defined as financial knowledge and four dimensions of digital literacy (digital knowledge, awareness of digital financial services, practical know-how of using digital financial services, and the ability to avoid digital fraud). • Digital financial literacy was positively associated with financial well-being. • This association was largely due to financial knowledge and the ability to avoid digital fraud. • The effect of the ability to avoid digital fraud was significantly greater than the effect of financial knowledge. • Achieving financial well-being requires the appropriate digital skills to apply financial knowledge on digital financial platforms. Digital financial literacy is an emerging concept that emphasizes necessary knowledge and skills to carry out financial transactions on digital platforms. In this study, we aim to examine the link between digital financial literacy and financial well-being among Korean adults. Using online survey data, this study shows that digital financial literacy is associated with financial well-being, and this association is largely due to financial knowledge and the ability to protect against digital fraud. Digital financial literacy carried larger marginal effects on financial well-being compared to financial knowledge, and demonstrated significant effects across sociodemographic groups. Implications for financial education were discussed. [ABSTRACT FROM AUTHOR]

• Comparative analysis of traditional inclusion and digital inclusion on enterprise innovation. • Traditional inclusion finance inhibits enterprise innovation output and efficiency. • Digital inclusion finance promotes enterprise innovation output and efficiency. • The heterogeneity impacts of invention patents and other patents have been analyzed. This study assesses the impact of financial inclusion on innovation of enterprises, and draws a comparison between digital and traditional financial inclusion. This paper fills this gap as existing studies focus on the influence of digital finance inclusion. We conduct the study in China and construct an index to quantify financial inclusion, and analyzed how financial inclusion drives innovation by increasing the efficiency and output of enterprises. We find that enterprise innovation is directly related to digital financial inclusion but is inversely related to traditional financial inclusion. This evidence reveals characteristics of the relationship and inspire future research. [ABSTRACT FROM AUTHOR]

• Poor, low-educated adults are excluded from financial inclusion. • Age and informal financial transactions have an inverted U-shaped relationship. • Wages are important for saving and borrowing in the formal and informal sectors. • Ctree shows mobile phones increases financial transactions for adult receiving income. The determinants of the usage of the formal versus the informal financial sector within the BRICS countries are analysed. Regression tree and probit methods are applied to a subset of observations from the 2021 Global Findex database. Results of these different methods are robust and complement each other. The main findings are: (a) Individuals with regular income has higher probability of using the formal financial sector; (b) There is a nonlinear relationship with age and the financial sector channels, individual above 36 are less likely to use the informal channel but are more likely to use the formal channel. [ABSTRACT FROM AUTHOR]

• Impact of financial inclusion on the Urban-Rural Income Gap • Financial inclusion system has the effect of widening the urban-rural income gap under the consideration of spatial factors • Urban-rural income gap widens with the increase of financial inclusion level when the financial inclusion is at a low level • Urban-rural income gap becomes narrowed with the increase of financial inclusion development when it reaches a certain level This paper attempts to empirically test the relationship between financial inclusion and the urban-rural income gap using a spatial panel data model. We find that the development of the financial inclusion system widens the urban-rural income gap under the consideration of spatial factors. With regard to the regional analysis, we find that when the level of financial inclusion is low, the urban-rural income gap widens as the level of financial inclusion increases. And the urban-rural income gap narrows with the increase of financial inclusion when the financial inclusion reaches a certain level. [ABSTRACT FROM AUTHOR]

• This paper the relationship between financial inclusion, digital technology and economic growth for 84 countries. • Digital technology could enhance the financial inclusion's effect on economic growth. • The effect of financial inclusion and digital technology vary depending on the level of income of a country. • There is a threshold level for financial inclusion that needs to be achieved before it positively affects country growth. This paper examines the relationship between financial inclusion, digital technology and economic growth. A dynamic panel data analysis examines 84 countries since the GFC period. The results show that there is a positive and significant effect of financial inclusion and digital technology on country economic growth. In addition, digital technology plays a role in complementing the effects of financial inclusion on economic growth, implying that consolidation efforts should take place in improving financial ecosystems via digital technology infrastructure. [ABSTRACT FROM AUTHOR]

Access to financial services varies sharply around the world among countries but also within regions and municipalities in the same country. To identify this important variation multivariate indices have been considered previously but they should have an adequate formulation that results in relevant information for policy proposals. Many Financial Inclusion (FI) Indices have been constructed using methodologies that do not allow identifying subdimensions within the broad dimensions of access and usage in which the entity (country or municipality) could be lagging. In this respect our contribution is to construct a novel FI index that encompass different subdimensions of access and usage which are determined previously by exploratory factor analysis. The aggregation of our index is as a weighted geometric mean with the weights derived from DEA Benefit of the Doubt (BoD). In other formulations the weights imposed in multivariate indices have been a source of criticism when determined by the researcher discretionally or derived by factor or principal component analysis which have some shortcomings. We construct a Geometric BoD index for Mexican municipalities in 2020 considering that our FI index formulation is also appropriate to use for any other country or region. Our results show that the importance of each dimension is different for each municipality in Mexico which in turn indicates that each of them can suffer of low levels of FI for a variety of reasons. • We construct a novel Financial Inclusion (FI) index for Mexican municipalities in 2020. • Our index encompasses subdimensions of access/usage determined by factor analysis. • The aggregation of the index is as a weighted geometric mean, with DEA BoD weights. • Our FI index formulation is also appropriate to use for any other country or region. • Our results show that municipalities suffer low FI levels for a variety of reasons. [ABSTRACT FROM AUTHOR]

• At present, 31% of adults around the world do not have access to banking. • Financial exclusion is particularly acute in developing countries where 37% still do not have a bank account, compared to 9% in the developed world. • Lack of access to banking generates inequality, therefore financial inclusion is a crucial objective of the UN sustainable development goals (SDGs). • Sustainable practices by multinational banks (MNBs) promote mobile banking in the developing world. • This is consequential because mobile banking is one of the most powerful means to achieve financial inclusion in the developing world. Lack of access to banking generates inequality in the developing world; therefore, financial inclusion is a crucial objective of the Sustainable Development Goals. We investigate the impact of sustainable practices of multinational banks (MNBs) on financial inclusion. A sample of 275 MNBs, 16 developing countries, and 16,618 individuals yield robust evidence confirming the positive effect of such practices on financial inclusion. Specifically, we find that as MNBs become sustainable, the use of mobile banking intensifies. This finding is consequential because mobile banking is one of the most powerful means to achieve financial inclusion in the developing world. [ABSTRACT FROM AUTHOR]

• Employs cross-country bank-level data and examines the interlinkage between financial inclusion and banking stability in the presence of interest rate repression. • Financial inclusion improves banking stability, notwithstanding interest rate repression. • This impact occurs both with regard to account ownership and its use (savings), but not with regard to borrowings. • The results remain robust to potential endogeneity concerns. The role of interest rate repression in affecting banks' behavior has been well-studied in the literature. What has not been examined is how financial inclusion affects this relationship. Using cross-country data, we test the association between financial inclusion and banking stability in the presence of interest rate repression. Using bank-level data, we find that financial inclusion exerts a positive and statistically significant impact on banking stability, notwithstanding interest rate repression. The findings support the fact that financial inclusion is beneficial for banking stability, even after accounting for interest rate controls. [ABSTRACT FROM AUTHOR]

• We investigate how information sharing institutions and financial inclusion influence the risk of banks. • The consequent combined effect is lower insolvency risk. • Bank's mean Z-score increases by 3.51–9.09%, owing to enhanced information sharing and higher financial inclusion. • Results remain robust across risk indicators and controlling for FinTech-based inclusion and COVID-19-induced risk. • FinTech-based financial inclusion and enhanced information institutions reduce risk of banks. We explore how information-sharing and financial inclusion influence bank risk in 84 countries from 1996 to 2020. Results show that greater information-sharing and financial inclusion lessen bank risk levels. The average bank's Z-score increases by 3.51–9.09%, attributable to enhanced information-sharing and higher financial inclusion. Inclusion-based deposit mobilization reduces bank probability of insolvency, suggesting that inclusion provides banks with cheap funding sources, reducing moral hazard problems and risky behaviors. Results remain robust across risk indicators and controlling for FinTech-based inclusion and COVID-19-induced risk. They support the hypothesis of increased social returns to transparency, information-sharing, and reaching out to financially excluded segments. [ABSTRACT FROM AUTHOR]

• Literature has found that women outperform men in terms of loan repayment. • Does higher gender equality in access to credit therefore foster financial stability? • We perform regressions at the bank level on a large dataset all over the world. • We find a negative relation between the gender gap in access to credit and financial stability. • Thus enhancing access to credit for women relative to men is beneficial for financial stability. Literature has found that women outperform men in terms of loan repayment. We can therefore question whether more gender equality in access to credit fosters financial stability. We test this hypothesis using cross-country data on financial inclusion from the World Bank's Global Findex database and bank-level data on financial stability. We perform regressions at the bank level to check the existence of a relation between the female-to-male ratio of access to credit and financial stability. We find evidence of a negative relation between the gender gap in access to credit and financial stability. Therefore our findings support the view that enhancing access to credit for women relative to men is beneficial for financial stability. [ABSTRACT FROM AUTHOR]

This study focuses on the impact of digital finance on households. While digital finance has brought financial inclusion, it has also increased the risk of households falling into a debt trap. We provide evidence that supports this notion and explain the channel through which digital finance increases the likelihood of financial distress. Our results show that the widespread use of digital finance increases credit market participation. The broadened access to credit markets increases household consumption by changing the marginal propensity to consume. However, the easier access to credit markets also increases the risk of households falling into a debt trap. • The widespread use of digital finance increases credit market participation. • Increased access to credit markets stimulates household borrowing. • Credit market access changes marginal propensity to consume and elevates consumption. • Easier access to credit markets increases the risk of falling into a debt trap. [ABSTRACT FROM AUTHOR]

• This study examines the impact of financial inclusiveness on economic growth using a dynamic panel threshold estimation for the sample of 60 countries from 2010 to 2017. • A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. • The main findings revealed that there is a threshold effect in the financial inclusiveness-growth nexus. • The level of financial inclusiveness is beneficial and positively affects economic growth at lower or upper threshold levels in a different regime. • The threshold impact of financial inclusion is positive and has a more significant growth-enhancing effect among less developed and emerging market countries relative to developed ones. • Policymakers in less developed and emerging market countries need to prioritize their efforts to raise the level of financial inclusiveness in place of its greater growth-enhancing effect in these countries. This study examines the impact of financial inclusiveness on economic growth using a sample of 60 countries from 2010 to 2017. A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. The main findings using a dynamic panel threshold estimation technique revealed a threshold effect in the financial inclusiveness-growth nexus. We find that the level of financial inclusiveness is beneficial and positively affects economic growth at lower or upper threshold levels in a different regime. Furthermore, the threshold impact of financial inclusion is positive and has a more significant growth-enhancing effect among less developed and emerging market countries relative to developed ones. Thus, policymakers in less developed and emerging market countries need to prioritize their efforts to raise the level of financial inclusiveness in place of its greater growth-enhancing effect in these countries. [ABSTRACT FROM AUTHOR]

• We study the impact of financial inclusion and bank ownership structure on economy's performance. • Relative to state-owned banks, privately-owned banks' financial inclusion strategy positively related to performance measures, barring capital accumulation. • Foreign banks' circumscribed and exclusory intermediation hurts economy's performance. • The quality of host countries' institutions is as important in promoting performance through financial inclusion. This study analyzes financial inclusion and bank ownership structure's macro impact, using data from 44 developing countries over 2004-2017. Although foreign bank participation enhances the banking sector's efficiency, the benefits decline with circumscribed and exclusory intermediation, resulting in reduced per capita GDP and output growth. Use of and access to financial services and products, including ATMs availability and depositor accounts, positively impact economic performance. To positively impact the economy, financial inclusion and bank ownership require a minimum level of institutional quality. [ABSTRACT FROM AUTHOR]

• We developed a fintech-based financial inclusion (FinFI) index. • We focused on Sub-Saharan African MFIs with a remarkable and recent development in fintech solutions. • Higher involvement in fintech solutions is associated with lower risk-taking of MFIs. • Small scale MFIs largely benefited from fintech solutions. Fintech innovations are rapidly transforming the global financial industry and easing the financial inclusion initiatives of microfinance institutions (MFIs). Such technological transformations are expected to promote stability in the financial system and in turn reduce the risk-taking behavior of its main actors. However, there is limited or no empirical evidence to confirm the impact of fintech-based financial inclusion (FinFI) on the risk-taking behavior of Sub-Saharan African MFIs. Thus, we have developed a new index to measure FinFI and empirically assess its role in reducing the risk-taking attitude of MFIs. The validity of our results was confirmed by using various robustness tests. [ABSTRACT FROM AUTHOR]

• This paper provides new empirical evidence on the effect of financial inclusion on a firm's growth (889 firms) in the ASEAN-5 (Malaysia, Thailand, Philippines, Indonesia, and Vietnam) countries using a cross-section threshold estimation technique. • The study's new findings demonstrated that financial inclusion on the firm's growth is different when the two regimes are considered. • There is a threshold effect in the relationship between financial inclusion and the firm's growth, and showed a non-monotonic effect on financial inclusion-firm's growth nexus. • The impact of financial inclusion on firm growth is significantly negative after a certain threshold point is reached. • These findings suggest that the firm's owner and banking institutions should deepen their financial inclusion efforts and limit credit access distribution within the optimum value or threshold level. • In addition, firms' owners and institutions need to obtain the optimal value of credit access that fosters a favorable effect on a firm's growth. This paper investigates the effect of financial inclusion on a firm's growth (889 firms) in the ASEAN-5 (Malaysia, Thailand, Philippines, Indonesia, and Vietnam) countries using a cross-section threshold estimation technique. This paper showed a non-monotonic effect on financial inclusion-firm's growth nexus. The impact of financial inclusion on firm growth is significantly negative after a certain threshold point is reached. These findings suggest that the firm's owner and banking institutions should deepen their financial inclusion efforts and limit credit access distribution within the optimum value or threshold level. [ABSTRACT FROM AUTHOR]

• We examine the influence of financial inclusion on CO2 emissions across 103 countries from 2004 to 2014. • We demonstrate the existence of environment Kuznets curve (EKC) and show that the relationship between financial inclusion and CO2 emissions is an inverted U-shape. • Financial inclusion can be used as a mitigation measure. • Policy makers should consider the synergy effect of financial inclusion in designingdevelopment and climate change policies. This study demonstrates the existence of financial inclusion-based environment Kuznets curve (EKC) by analyzing a panel of 103 countries during 2004–2014. The relationship between financial inclusion and CO 2 emissions is found to be an inverted U-shape. This finding is robust to different measurements of the financial inclusion index constructed by principal composite analysis and modifications of the estimation model. The existence of a financial inclusion-based EKC provides an important policy insight that financial inclusion can be used as a mitigation measure. Therefore, policy makers should consider the synergy effect of financial inclusion in designing development and climate change policies. [ABSTRACT FROM AUTHOR]

• Examine the impact of financial inclusion on CO2 emissions in Asia from 2004 to 2014. • Three proxies of financial inclusion are built based on principal component analysis. • Estimate the model by Hoechle (2007) procedure for Driscoll-Kraay standard errors. • Financial inclusion appears to have led to higher emissions of CO2 in the region. • No policy synergies were found between financial inclusion and mitigating emissions. This study examines the impact of financial inclusion on CO 2 emissions using a sample of 31 Asian countries during the period 2004–2014. Three composite indicators for financial inclusion are constructed using principal component analysis (PCA) based on normalized variables. To estimate the model, we adopted the Hoechle (2007) procedure which produces Driscoll-Kraay standard errors for linear panel models that are not only heteroskedasticity consistent but also robust to general forms of cross-sectional dependence. We find that income, energy consumption, industrialization, urbanization, FDI and financial inclusion appear to have led to higher emissions of CO 2 in the region. Meanwhile, increased openness to trade seems to have reduced CO 2 emissions. The findings are qualitatively robust to different proxies of financial inclusions and reasonable modifications to specification of the model. The empirical results imply that there are currently no policy synergies between growing financial inclusion and mitigating CO 2 emissions. Thus, financial inclusion should be integrated into climate change adaptation strategies at local, national and regional levels, especially to address the side effect of higher CO 2 emissions associated with improved financial inclusion. [ABSTRACT FROM AUTHOR]