Digital Financial Inclusion: Revisiting Poverty Theories in the Context of the Fourth Industrial Revolution (Palgrave Studies in Impact Finance)

Preface
Acknowledgements
Contents
List of Figures
List of Tables
Part I Introduction
1 Introduction to Digital Financial Inclusion: Revisiting Poverty Theories in the Context of the Fourth Industrial Revolution
	Introduction
	References
2 The Fourth Industrial Revolution: An Introduction to Its Main Elements
	Introduction
	History of Industrial Revolutions
	The First Industrial Revolution
	Agriculture and Energy
	Metallurgy and Textiles
	Chemicals and Transportation
	The Second Industrial Revolution
	The Third Industrial Revolution
	The Fourth Industrial Revolution
	Technologies Driving the Fourth Industrial Revolution
	Key Themes of the Fourth Industrial Revolution
	Conclusion
	References
3 Financial Inclusion and the Fourth Industrial Revolution
	Introduction
	Definition of Financial Inclusion
	Background of the Theory of Financial Inclusion
	The Origin of The Theory of Financial Inclusion
	Theories of Financial Inclusion
	Financial Inclusion Theories
	Financial Inclusion and the Fourth Industrial Revolution
	The Fourth Industrial Revolution and Financial Inclusion
		Artificial intelligence (AI) and the Problem of Information Asymmetry
	Adverse Selection and the Fourth Industrial Revolution
	The Fourth Industrial Revolution and Moral Hazard
	Conclusion
	References
Part II Theories of Financial Inclusion in the Context of the Fourth Industrial Revolution
4 The Beneficiaries Theory of Financial Inclusion and the Fourth Industrial Revolution
	Introduction
	The Beneficiary Theories of Financial Inclusion
	Vulnerable Group Theory of Financial Inclusion
	The Merits and Demerits of the Vulnerable Group Theory of Financial Inclusion
	Public Good Theory of Financial Inclusion
	The Merits of The Public Good Theory
	The Demerits of The Public Good Theory
	Dissatisfaction Theory of Financial Inclusion
	Merits and Demerits of the Dissatisfaction Theory
	Systems Theory of Financial Inclusion
	The Merits and Demerits of the Systems Theory
	The Implication for the Fourth Industrial Revolution on the Beneficiary Theories of Financial Inclusion
	Conclusion
	References
5 The Delivery Agent Theory of Financial Inclusion in the Context of the Fourth Industrial Revolution
	Introduction
	The Community Echelon Theory of Financial Inclusion
	The Merits and Demerits of the Community Echelon Theory
	Public Service Theory of Financial Inclusion
	Merits and Demerits of the Public Service Theory
	Special Agent Theory of Financial Inclusion
	The Special Agent Theory of Financial Inclusion’s Benefits and Drawbacks
	Collaborative Intervention Theory of Financial Inclusion
	Financial Literacy Theory of Financial Inclusion
	The Merits and Demerits of the Financial Literacy Theory of Financial Inclusion
	The Implications of The Fourth Industrial Revolution on the Delivery Agent Theory of Financial Inclusion
	Conclusion
	References
6 The Funding Theories of Financial Inclusion in the Context of the Fourth Industrial Revolution
	Introduction
	Public Money Theory of Financial Inclusion
	Promotion of Front and Back-End Infrastructure
	Making Rules for Infrastructure and Its Contribution to Responsible Market Development
	Driving Transaction Volumes
	Merits and Demerits of the Public Money Theory of Financial Inclusion
	The Private Money Theory of Financial Inclusion
	The Intervention Fund Theory of Financial Inclusion
	The Implications of The Fourth Industrial Revolution on Funding Perspective Theories of Financial Inclusion
	Conclusion
	References
Part III Reconstructing the Theory of Financial Inclusion: From Traditional Financial Inclusion to Digital Financial Inclusion
7 Digital Financial Inclusion in the Fourth Industrial Revolution
	Introduction
	Digital Financial Inclusion
	The Goals of Digital Financial Inclusion
	The Various Components of Digital Financial Inclusion
	Providers and Instruments for Digital Financial Inclusion
	Instruments for digital financial inclusion
	Debit Cards
	Credit Card
	Internet Banking
	Mobile Money
	Agent Networks
	E-money Accounts
	Retail Point of Sale (Pos) Terminals
	Conclusion
	References
8 The Transition from an Informal Financial Money Market to a Formal Financial System Through Digital Financial Inclusion
	Introduction
	Informal Financial Market
	Formal Financial Market
	Digital Financial Services (DFS)
	Fintech
	Fintech Firms
	BigTech Firms
	A Brief History of FinTech
	The Transition from an Informal Financial Money Market to a Formal Financial System Through Digital Financial Inclusion
	Digital Financial Inclusion Models and Infrastructure for the Transition From an Informal to a Formal Financial System
	Digital Financial Inclusion Models
		Mobile Money
		Platform Ecosystems
		Open Application Programming Interfaces
	Infrastructure that Supports Financial and Digital Transactions
		Payment Systems
		Credit Infrastructure
		Digital Connectivity Infrastructure
		Government Data Platforms
		Digital ID
	Channels of the Transition from An Informal Financial Money Market to A Formal Financial System Through Digital Financial Inclusion
	Information Asymmetry and Digital Financial Services
	Digital Tools and Cost Reduction Using Chatbots
	Cybersecurity and Fraud Detection
	Detection, Management, and Measurement of Risks
	Informal Financial Money Market to A Formal Financial System through Digital financial inclusion
	Providing Formal Financial Services Such as Payments, Transfers, Savings, Credit, Insurance, and Securities
	Promoting Electronic Payments, Transfers, Savings, Credit, Insurance, and Investments
	Lower Cost of Digital Transactions for Customers and Providers of Digital Financial Services
	Summary of FinTech Benefits that Helps the Informal Sector to Participate in the Formal Financial Market
	Conclusion
	References
9 Prospects and Challenges of Digital Financial Inclusion/Fintech Innovation in the Fourth Industrial Revolution
	Introduction
	How Consumers in Emerging Markets Use Digital Financial Services
	Formal Financial Services are Scarce in Emerging Markets
	Low-Income Levels in Emerging Markets
	Insufficient Infrastructure in Emerging Markets
	Challenges for Banks of Digital Financial Inclusion/Fintech Innovation in Emerging Markets
	Incomes that are Volatile and Limited
	Geographical Barriers
	Lack of Documentation and Informality
	Literacy and Trust and Poverty
	Challenges for Digital Financial inclusion for women
	Women Have Constrained Access to Official Identification Cards
	Women's Account Ownership Is Harmed by Laws that Discriminate Against Them
	Women's Financial Inclusion Can Be Further Hampered by Attitudes on Their Participation in The Labor Force and Access to Digital Financial Services
	Women's Digital Literacy and Financial Capabilities are Both Low
	Women are Less Likely than Men to Own a Cell Phone
	Many Government-To-Person Payments Are Still Made in Cash Especially to Women
	Initiatives That Can Be Followed to Achieve Digital Financial Inclusion
	Conclusion
	References
Part IV Assessing Tools and Impact of Digital Financial Inclusion
10 The Introduction to Poverty in the Fourth Industrial Revolution
	Introduction
	The World Bank Poverty
	The Impact of the Fourth Industrial Revolution on the Definition of Poverty
	Digital Poor People
	Conclusion
	References
11 Channels Through Which Financial Inclusion Reduces Poverty, What is the Role of 4IR, Digital Technologies in This Process?
	Introduction
	The Classical Economics Theory
	The Keynesian Economics Theory
	The Endogenous Growth Theory
	Financial Inclusion, Financial Development, Economic Growth, and Poverty Reduction
	Empirical Literature on the Financial Inclusion and Poverty Reduction
	The Role of Digital Financial Inclusion in the 4IR in Fighting Poverty
	Conclusion
	References
12 The Impact of Financial Inclusion on Poverty from the Classical Theory of Poverty in the Fourth Industrial Revolution
	Introduction
	The Classical School of Thought and the Origins of Poverty
	The Subculture Theory
	The Fourth Industrial Revolution and the Classical Theory of Poverty
	Financial Inclusion and Poverty from The Classical Point of View
	Conclusion
	References
13 The Impact of Financial Inclusion on Poverty from the Neoclassical Theory in the Fourth Industrial Revolution
	Introduction
	Poverty Under the Neoclassical School of Thought
	The Monetary Approach to Poverty
	Assets Approach to Poverty
	Incentive, Market Failures, and Access to Credit Approach
	Human Capital Theory
	Ethnic Minority Groups and Immigration Perspective
	Health and Demographics Perspective on Poverty
	The Fourth Industrial Revolution and Neoclassical Theory of Poverty
	Financial Inclusion and Neoclassical Theory of Poverty
	Conclusion
	References
14 The Impact of Financial Inclusion on Poverty: From Keynesian/Liberal Perspective in the Fourth Industrial Revolution
	Introduction
	Theories Of Poverty Under the Keynesian/Liberal Approach
	Keynesian Macroeconomic View on Poverty
	Fatalistic View of Poverty
	Unemployment and Poverty
	The Fourth Industrial Revolution and the Keynesian/Liberal Theory of Poverty
	Financial Inclusion and The Keynesian/Liberal Theory of Poverty
	Conclusion
	References
15 Financial Inclusion, and Marxian/Radical Theory of Poverty in the Fourth Industrial Revolution
	Introduction
	Theories Of Poverty Under the Marxist/Radical Perspective
	Dual Labour Markets
	Discrimination and Class
	Poverty and the Environment
	Structural Approach to Poverty
	The Fourth Industrial Revolution and the Marxian/Radical Theory
	Financial Inclusion and the Marxian/Radical Theory
	Conclusion
	References
16 Financial Inclusion, Social Exclusion, Social Capital, and Psychological Theories of Poverty in the Fourth Industrial Revolution
	Introduction
	Social Exclusion Theory
	Social Capital Theory
	Psychological Explanations of the Causes of Poverty
	Financial Inclusion the Social Exclusion, Social Capital, and the Psychological Explanations of Poverty
	The Fourth Industrial Revolution, the Social Exclusion, Social Capital, and the Psychological Explanations
	Conclusion
	References
Part V Cases Studies of Digital Financial Inclusion
17 Selected Digital Financial Inclusion Success Stories Across Developing Economies
	Introduction
	Financial Inclusion and Digital Financial Inclusion in China
	Automated Teller Machines (ATMs), Per 100,000 2006 to 2019
	Village and Township Banks, Principal Sponsor Banking and Financial Inclusion
	Ownership of Banking Accounts, Cards, and Credit Use of the Underserved Market Segments
	Digital Financial Inclusion in China
	Financial and Digital Financial Inclusion in Africa
	Background of Digital Financial Inclusion in Africa
	Key To Digital Financial Inclusion in Africa
	M-Pesa Kenya Successful Case study for Financial and Digital Inclusion in Africa
	The M-Tiba Service in Kenya for Digital Financial inclusion
	How Does M-Tiba Operate?
	Financial Inclusion Trends in Kenya
	Conclusion
	References
18 Digital Financial Inclusion, and the Way Forward for Emerging Markets: Towards Sustainable Development
	Introduction
	Digital Financial Inclusion
	Necessary Elements for Digital Financial Inclusion in Africa and Other Markets
	Digital Financial Inclusion Literature
	The Opportunities for Digital Financial Services in Africa
	Young and Dynamic Population
	Significant Cash-Payment Volumes Through Informal Channels Represent a Large Untapped Market for Digital Financial Services
	What Should Governments Do to Ensure that Digital Financial Services Yield More Towards Sustainable Development?
	Regulators Ought to Promote Both Conventional and Digital Financial Literacy
	Regulations Must Consider the Unique Opportunities and Constraints Consumers and Business Owners Encounter with Digital Financial Services.
	While Providing a Digitization-Friendly Environment, Policymakers Must Improve Regulation, Oversight, And Market Conduct.
	To Address Structural Challenges Preventing the Growth of The Financial Services Industry, Regulators, Public Policymaking Organizations, And The Private Sector Particularly Supply-Side Participants Must Collaborate.
	Systemic Biases That Contribute to Financial Exclusion in The Financial System Can Be Removed Using Artificial Intelligence.
	Conclusion and Policy Recommendations
	References
19 The Conclusion of Digital Financial Inclusion: Revisiting Poverty Theories in the Context of the Fourth Industrial Revolution
	Introduction
	References
Index