Financial inclusion based on financial technology and risky behaviour of micro-finance institutes: evidence from South Asian micro-finance banks
Digital Policy, Regulation and Governance
ISSN: 2398-5038
Article publication date: 19 June 2023
Issue publication date: 24 July 2023
Abstract
Purpose
The purpose of this paper financial technology (FinTech) revolutions are promptly remodelling the worldwide financial industry and facilitating financial inclusion initiatives with the aid of micro-finance institutions. Such hi-tech modifications are anticipated to sell the stableness of the financial system and lessen its predominant actors’ risk-taking behaviour. However, there needs to be more practical proof to guide the effect of financial inclusion based on financial technology on the risky behaviour of South Asia micro-finance institutes.
Design/methodology/approach
Therefore, the authors industrialised a fresh index to calculate financial inclusion based on financial technology and empirically measure its position in decreasing the risk-taking approach of micro-finance institutes. The use of numerous robustness examinations endorsed the rationality of the authors’ outcomes.
Findings
Z-scoring or standard scoring outcomes of FinInc support the extant studies displaying its incredible connection with economic stability, which interprets as a terrible courting with risky behaviour of micro-finance institutes. Consequently, the authors highlighted the significance of the universality and openness of financial technology solutions in minimising risk of micro-finance institutes. Moreover, the authors concluded that financial technology is greater related to small-size micro-finance institutes.
Originality/value
This study currently focusing South Asia, which has not been explored before, and it is the first time to research financial inclusion with Fintech in this area.
Keywords
Acknowledgements
Funding: The author(s) received no financial support for the research, authorship and publication of this article.
Declarations: Declaration of conflicting interests: On behalf of all authors, the corresponding author states that there is no conflict of interest.
Citation
Hussain, S. and Rasheed, A. (2023), "Financial inclusion based on financial technology and risky behaviour of micro-finance institutes: evidence from South Asian micro-finance banks", Digital Policy, Regulation and Governance, Vol. 25 No. 5, pp. 480-489. https://doi.org/10.1108/DPRG-12-2022-0149
Publisher
:Emerald Publishing Limited
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