yes / In recent years financial inclusion has become an important policy goal in the developing countries. The definition of financial inclusion is however, not clear and varies from ‘banking the unbanked’ to ‘branchless banking’. It is also increasingly viewed as a tool of poverty alleviation. Further, it enables the poor to be risk averse and allows investment in their health and education (Arora 2012). Financial inclusion has become all the more important as studies have shown that poor, despite their low incomes and small amount of funds available, actively manage and diversify their portfolios into different financial products even though outside the formal financial system (Collins et al. 2009).

Yes / In this study we examine disparities in financial development at the regional level in India. The major research questions of the study are: How do we measure the level of financial development at the sub-national level? How unequal is financial development across the states? Does it vary by ownership of financial institutions? To explore these research questions, our study develops composite banking development index at the sub-national level for three different bank groups - public, private and foreign for 25 Indian states covering 1996 - 2015. Our findings suggest that despite reforms, banking development is significantly higher in the leading high income and more developed regions compared to lagging ones. Further, we find that all bank groups including public banks are concentrated more in the developed regions. Overall, over the years the position of top three and bottom three states in the aggregate banking index has remained unchanged reflecting lop-sidedness of regional development. We also note improvement in the ranking of some north-eastern states during the period 2009-15.

The following dissertation contains two distinct empirical essays which contribute to the overall field of Financial Economics. Chapter 1, entitled “Financial Inclusion and Economic Development in OIC Member Countries,” examines whether the presence of Islamic finance promotes development and alleviates poverty. To do so, we estimate the influence of financial inclusion variables on development and poverty variables for OIC countries. Using data from the World Bank, we use dynamic panel analysis using methodology similar to Beck et al (2000) to study the effects of financial inclusion on economic development and use simple cross-sectional analysis similar to Beck et al (2004) to study the effects on poverty alleviation. We find that the countries with Islamic finance tend to outperform the rest of the world. We believe that the ability of financial institutions offering Shari’a compliant services to bring otherwise excluded people under the financial system plays a major role in increased development and reduced poverty in those countries. The results support our view that financial inclusion is causing development. Chapter 2 entitled, “Asymmetric Market Reactions to the 2007-08 Financial Crisis: From Wall Street to Main Street,” examines the impact of significant news events during the 2007 – 2008 financial crisis on the abnormal stock returns for portfolios of financial and real sector firms. We recognize 17 significant news events from 2007 and 2008 and create equity portfolios using daily CRSP data from January 1, 2006 to December 31, 2009. We estimate event announcement interval abnormal returns in the context of an asset pricing model similar to Fama and French (1993) and Carhart (1997). We document significant negative abnormal returns for the portfolio of non-financial firms, and the smallest firms exhibit the largest negative abnormal returns, an indication of a significant spillover of financial market news to real sector stock returns. Smaller financial firms also exhibit negative abnormal event returns, and these results are driven by broker-dealer, depository, holding-investment, and real estate firms. The results provide new evidence regarding the incorporation of news events into asset prices during financial crises.

This study investigates whether the use of mobile money affects the savings patterns of individuals that are vulnerable to financial exclusion, that is, the low-income earners, low-educated, women and rural habitants. Studying the case of Kenya, this study uses data from the 2016 FinAccess Household Survey (N=8,665) that was designed to track and measure the drivers, growth and impact of mobile money use in Kenya. Logistic model and the 2SLS IV regression are used as the empirical estimation method for testing the statistical significance of the correlation between mobile money usage and the savings behaviors of the individuals. The results show that users of mobile money are 1.96 more likely to have a savings product than those that do not use mobile money, and that the propensity for users of mobile money to save for emergencies and for future events is 1.44 and 1.27 times higher, respectively, as compared to the non-users. These findings suggest that individuals that use mobile money perceive it as a trustworthy, efficient and reliable store of value especially making savings for future use. This analysis also finds statistically significant evidence suggesting that mobile money use significantly increases the propensity to save for individuals in demographic groups that are more susceptible to the unique challenges that lower accessibility to formal financial services. Therefore, by increasing the probability of individuals in the female, low income, low education and rural groups to save, mobile money fosters financial inclusion which is essential in the realization of the Sustainable Development Goals such as reducing poverty, increasing equality and sustained economic growth among others. In general, this study has specific policy implications for using mobile money as a device for increasing financial inclusion among the ‘unbanked’ population.

O presente trabalho tem por objetivo mensurar a importância das cooperativas de crédito na inclusão financeira da população brasileira, através de um índice, tendo como base o ano de 2015. Inicialmente são expostos os motivos pelos quais existem os intermediários financeiros, sua origem e seus benefícios. Em seguida é realizada uma introdução sobre o tema “inclusão financeira”, abordando sua importância, bem como descrita uma forma de mensuração do nível de inclusão financeira de uma região e as principais ações realizadas pelo governo brasileiro nesse assunto. Após isto é apresentada a estrutura do sistema financeiro brasileiro, com breve descrição das funções das principais instituições fiscalizadoras e operadoras. Na sequência é esclarecido o que é uma cooperativa de crédito, bem como as diferenças que este tipo de instituição possui em relação aos bancos e a sua relação com a inclusão financeira. Por fim, é analisada a importância das cooperativas de crédito no Brasil, tendo como base um índice de inclusão financeira, considerando a importância dessas instituições através do impacto dos números no índice brasileiro em relação a outros países e também às diferentes regiões e extratos da população brasileira, onde se constata que, apesar do crescimento do cooperativismo de crédito no Brasil nos últimos anos, essas instituições ainda possuem baixa influência na inclusão financeira da população quando comparado a outros países. Todavia, possuem grande importância para regiões menos assistidas pelas instituições financeiras tradicionais, como é o caso dos municípios com população menor e com maior relevância da população rural. Tais fatos demonstram que é importante para o crescimento da inclusão financeira o fomento a essas instituições e que há grande potencial de crescimento do setor no Brasil, tendo em vista a sua representatividade em outros países do mundo. / This paper aims at measuring the importance of Credit Unions in the financial inclusion of the Brazilian population through an index, using the year 2015 as a basis for data collection. Firstly, the reasons why there are financial intermediaries, their origin and benefits are shown. Subsequently, an introduction of the theme “financial inclusion” is made, with an approach about its importance, as well as a description of a way of measuring the level of financial inclusion of a region and Brazil’s government’s attitude towards this subject. After that, the structure of the Brazilian financial system is presented, with a brief description of its functions and main inspection institutions and operators. Then, the concept of Credit Unions is explained, as well as the differences between this kind of institution and banks, and also how it is related to the financial inclusion. Lastly, the importance of these unions in Brazil is analyzed using an index of financial inclusion as a basis, considering the importance of these institutions through the impact of these numbers in the Brazilian index when compared to other countries’. It’s also compared to the different regions and extracts of the Brazilian population, where it is verified that, despite the growth of Credit Unions in Brazil in the last few years, these institutions still have little influence in the financial inclusion when compared to other countries’ results. However, they mean a lot to regions that are less assisted by traditional financial institutions, which is the case of cities with smaller population and with greater relevance of the rural population. Such facts demonstrate that for the growth of financial inclusion in Brazil, it is important to give support to those institutions, and that this sector has a big chance of growing in Brazil, considering its representativeness in other countries around the world.

This doctoral dissertation examines how the financialization of the economy affects the everyday lives of low and moderate-income (LMI) urban residents in the United States. Specifically, the research presented in this dissertation provides a critical examination of the democratization of finance by examining financial empowerment programs designed to promote financial inclusion for LMI residents in Boston, Massachusetts. These programs were created in the wake of the financial crisis to promote financial security by training participants to manage their debt, to monitor their credit scores, to avoid predatory lending, and to invest using mainstream financial products. This research has two significant findings. First, this research shows how nonprofit organizations teach LMI adults to use credit and accumulate assets in order to compensate for wage stagnation and the erosion of state assistance. I argue that the practice of financial coaching asks individuals and households to accept the burden of debt to ensure the reproduction of society; rather than the city, state and federal governments being responsible for ever-expanding welfare rolls in a time of intensifying inequality, financial literacy and capability initiatives encourage people who are living in poverty to gain access to consumer credit in order to survive. As consumer and municipal debt grows unabated, this finding offers new insights into the scalar interdependence that finance engenders between the city and its residents. Second, this research illustrates how nonprofit financial empowerment programs are helping financial institutions expand their reach into new consumer markets. This suggests that the active growth of the financial sector is contingent upon making previously unfit market actors into responsible debtors in the pedagogical spaces of financial inclusion. This research militates against any easy assumptions about the normative ‘good’ of financial inclusion and advances scholarship on urban governance, the welfare state, financialization and the geographical study of inequality.

Los microseguros son una herramienta de gestión que permiten controlar los riesgos a los que se encuentran expuestas las pequeñas y medianas empresas. Debido a la baja penetración de este producto en el mercado de seguros, se pretende analizar los factores que influyen en la limitada demanda, como la falta de canales adecuados de distribución, informalidad de pequeñas y medianas empresas (no bancarizadas), falta de difusión y escasa cultura de seguros, así como una tarificación acorde a las necesidades del mercado meta. El objetivo es impulsar la penetración de microseguros desde una perspectiva socio-económica que brinde al usuario la protección de su patrimonio frente a situaciones adversas, logrando que las pequeñas y medianas empresas se integren en el mercado de seguros. Esto será viable en la medida que se difunda la educación financiera y la cultura de seguros a través de los distintos programas que promueve la Superintendencia de Banca y Seguros y entidades privadas. La estrategia de distribución es uno de los factores claves que va a permitir la captación de asegurados y lograr una mayor recaudación de primas. Con el crecimiento de los microseguros, las compañías aseguradoras tendrán la responsabilidad de analizar su oferta mejorando el diseño del producto y adecuándolo a las necesidades del mercado. / Microinsurance is a management tool that allows controlling the risks to which small and medium-sized companies are exposed. Due to the low penetration of this product in the insurance market, it is intended to analyze the factors that influence the limited demand, such as the lack of adequate distribution channels, informality of small and medium enterprises (unbanked), lack of diffusion and poor insurance culture, as well as pricing according to the needs of the target market. The objective is to promote the penetration of microinsurance from a socio-economic perspective that provides the user with the protection of their heritage in the face of adverse situations, achieving that small and medium-sized companies are integrated into the insurance market. This will be viable to the extent that financial education and insurance culture are disseminated through the different programs promoted by the Superintendence of Banking and Insurance and private entities. The distribution strategy is one of the key factors that will allow the capture of policyholders and achieve a higher premium collection. With the growth of microinsurance, insurance companies will have the responsibility to analyze their offer by improving the design of the product and adapting it to the needs of the market. / Trabajo de Suficiencia Profesional

El presente documento tiene como objetivo desarrollar un plan de negocio para la implementación de una plataforma de financiamiento participativo financiero (crowdlending), que conectará a los peruanos que requieran de financiamiento (acreditados) para cumplir sus sueños a corto plazo con el apoyo de otros peruanos que disponen de fondos (prestamistas) a cambio de rentabilidad en su inversión. Conectamos a cada prestamista con varios acreditados, a través de nuestra plataforma digital (website y app móvil) que será intuitiva, simple y segura, que permita el seguimiento tanto de sus préstamos personales, como de sus inversiones. En el plan de negocio se determinaron los siguientes segmentos de clientes: los acreditados, como peruanos mayores de edad que residen en Lima Metropolitana y con necesidades de financiamiento de menor cuantía y en corto plazo, generalmente dirigidas a cubrir consolidación de deudas, viajes, estudios y compras; los prestamistas, como peruanos mayores de edad que residen en Lima Metropolitana que disponen de fondos excedentes y están en permanente búsqueda de mayores rentabilidades. Luego del análisis estratégico, se observaron condiciones favorables para la implementación de este plan de negocio pues actualmente el mercado de las fintech (empresas que brindan servicios financieros haciendo uso de tecnología) está facilitando el acceso de los peruanos al sistema financiero que antes no lo tenían. Existen varias alternativas en el rubro de préstamos personales, sin embargo, la fintech ekeko que se encuentra en el sector fintech crowdlending, con su ventaja y los objetivos estratégicos planteados, se enfocará en la diferenciación por mejores tasas para los acreditados y para los prestamistas mejor servicio agregando un seguimiento al sistema de cobranzas de los préstamos colocados de los acreditados. Se dispone de una estructura organizativa acorde a una sociedad anónima cerrada, desarrollándose los estados financieros para medir la viabilidad financiera y económica, con los cuales se obtuvo una utilidad positiva en el estado de resultados, mientras que el flujo de caja permitió evidenciar un VPN de S/ 1,567,725 y una TIR de 70%, positivos, por lo cual el proyecto es viable y se recomienda su implementación. / The purpose of this document is to develop a business plan for the implementation of a participatory financial financing platform (crowdlending), which will connect Peruvians who require financing (accredited) to accomplished their dreams in the short term with the support of other Peruvians which has funds (lenders) in exchange of return on your investment. We connect each lender with several accredited, through our digital platform (website and mobile application) that will be intuitive, simple and secure, which will allow following of both their personal loans and their investments. The customer segments were determined in the business plan: accredited, such as those of legal age residing in Metropolitan Lima and with minor and short-term financing needs, lead to covering the consolidation of debts, travel, studies and shopping. Lenders, such as Peruvians of legal age who reside in Metropolitan Lima who have surplus funds and are constantly seeking greater returns. After the strategic analysis, favorable conditions were observed for the implementation of this business plan, because currently fintech market (companies that provide financial services using technology) is facilitating the access of Peruvians to the financial system that previously did not. There are several alternatives in the field of personal loans, however, the fintech ekeko that is in the fintech crowdlending sector, with its advantage and the strategic objectives set, focused on the differentiation for the best rates for the accredited and the best service for the lenders adding a follow-up to the collection system of the loans placed by the borrowers. An organizational structure is available according to a closed corporation, developing the financial statements to measure the financial and economic viability, with which a positive profit was obtained in the income statement, while the cash flow is evidenced in NPV S/ 1,567,725 and IRR 70%, positive, so the project is viable and its implementation is recommended. / Trabajo de investigación

Even with such a diverse set of actors, this paper will argue that it is irrational not to have a functioning mobile banking ecosystem that can provide a full range of financial services to the poor. As seen by current public and private actors that lead the charge in creating mobile banking ecosystems, all actors can substantially benefit. With three billion unbanked poor, both traditional banks and microfinance banks will have significant opportunities to massively increase clientele in previously un-bankable and remote areas in a profitable way. Telecoms will be able to provide a wider array of services to attract and retain customers as traditional markets become more saturated and competitive as well as receive positive PR for providing services to the poor. On the public side, governments should see this as an opportunity to provide financial access to their citizens without having to provide the services themselves. Finally, previously unbanked clients stand to gain the most as they will receive access to convenient, reliable and flexible services that fit their needs in ways that were impossible before mobile banking technology. This paper, however, will not prescribe a single model for mobile banking. Differences in political systems, economy, geography, demographics, state of development, nature of financial systems, profile of clients, and regulatory environment make it impossible to create a "one size fits all" solution. The correct model for a functioning mobile banking ecosystem depends on the specific market environment of each individual country. Lessons can be learned from top emerging players in developing countries for a better overall understanding of the interests of the actors and how to create a framework that allows for these interests to co-exist. This understanding is critical if mobile banking is to eventually have an important global impact on financial inclusion for the poor.

L’objectif de cette thèse est d’examiner à la fois les dimensions de l’offre et de la demande relatives à l’inclusion financière. Cette recherche présente un ensemble complet de preuves empiriques concernant l’accès aux services financiers, aux niveaux macro et micro-économiques. Le troisième chapitre fournit une exploration de cette hypothèse essentielle. En utilisant des données structurelles par pays, il montre les effets de l’inclusion financière sur la réduction de la pauvreté et des inégalités. En outre, il montre les effets bénéfiques des nouvelles technologies sur l’extension de l’inclusion financière et la réduction de la pauvreté. Le quatrième chapitre soutient que la culture financière est un déterminant important de l’inclusion financière des ménages et du bien-être. Basé sur des données d’enquête, il suggère en outre que l’accès aux nouvelles technologies et leur utilisation augmente la probabilité de l’inclusion financière. L’objectif du cinquième chapitre est de déterminer si l’adoption des nouvelles technologies favorise l’inclusion financière des PMEs au Pakistan. L’analyse révèle une association entre l’adoption des NTIC et l’accès de la firme aux services financiers, ce qui implique que les firmes qui ont un meilleur accès ou une utilisation plus intense des nouvelles technologies sont susceptibles de tirer de plus grands avantages des marchés financiers que les autres.Cette recherche contribue à la littérature sur l’accès aux services financiers en étendant l’examen de plusieurs dimensions significatives et complémente les études sur l’impact de la profondeur financière, de la stabilité financière et de la culture financière. / The aim of this PhD dissertation is to examine both the supply and demand sideof financial inclusion. This research presents a comprehensive set of evidence regarding financial access at macro and micro levels. This thesis blends three essays where the third chapter provides insights on the crucial linkages between new technologies, financial inclusion and poverty. Findings have shown poverty and inequality reducing effects of financial inclusion based on cross country data. Moreover, it shows beneficial effects of new technologies in expansion of financial inclusion and poverty reduction. Fourth chapter argues that financial literacy is an important determinant of households’ financial inclusion and welfare. Based on primary data it further suggests that the access toand use of new technologies increase the likelihood of financial inclusion. The objective of fifth chapter is to determine whether the adoption of new technologies promotes financial inclusion for SMEs in Pakistan. The analysis indicates the association between information and communication technologies (ICT) adoption and firm’s access to finance,implying that firms with greater access to and use of new technologies are more likely to benefit from financial markets compared with the others. This research contributes to the literature on access to finance in a more extensive way by examining relatively modern dimensions such as ICTs, digital finance and mobile money. Moreover, this dissertation concentrates on the effects of financial development and ICT on poverty and inequality which is understudied branch in conventional finance-growth nexus.