Influences of financial inclusion to the development of the municipality of Gainza
Abstract
Financial inclusion is recognized as a catalyst for reducing poverty and promoting economic resilience. The research examines how financial inclusion impacts Gainza’s economic growth, social factors, government projects, and overall quality of life. Utilizing a mixed-method approach, the study combines quantitative data, such as metrics on banking access, microfinance penetration, and digital payment adoption, with qualitative insights gathered from interviews with government officials to assess strategies that can be formulated considering their current situation. This study determines and evaluates the overall financial inclusion of the residents and the development of the municipality as of 2024. A development strategy was crafted: “USAD: A Strategic Plan towards Financial Inclusion in the Municipality of Gainza.” It stands for the acronym U.S.A.D.—Understanding, Support, Accessibility, and Development. Using a descriptive research survey of 369 residents and in-person interviews with government officials, the findings reveal the Municipality of Gainza can also be considered a competitive municipality in the field of financial inclusion. Gainza has the means to offer different financial services to its residents, such as savings, insurance, loans, and investments. However, barriers like lack of financial literacy, lack of financial institutions, and limited options for available financial products limit them from reaching a wider range of residents in the area. This leads to the moderate development status of the Municipality because residents are unaware of and struggling to participate in different economic activities.
Downloads
References
Afghanistan, Angola, Angola, et al. (2023, October 26). Global Financial Inclusion (Global Findex) Database 2014. World Bank. Retrieved from https://microdata.worldbank.org/index.php/catalog/2512
Beal, D., Husain, Z., & John, K. (2022, December 13). Banks can bet big on social impact. BCG Global. Retrieved from https://www.bcg.com/publications/2022/role-of-social-impact-banking-in-society
Bicol Regional Development Plan 2023-2028. (n.d.). National Economic and Development Authority. Retrieved April 18, 2024, from https://nro5.neda.gov.ph/bicol-regional-development-plan-2023-2028/
CBSUA, LCDF, Inc. (2023, November 23). CBSUA, LCDF, Inc. sign MOA with municipalities of Gainza, Bombon, and Canaman. CBSUA. Retrieved from https://w3.cbsua.edu.ph/news/cbsua-lcdf-inc-sign-moa-with-municipalities-of-gainza-bombon-and-canaman/
Cerf, M. (2023). The social-education-economy-health nexus, development and sustainability: Perspectives from low- and middle-income and African countries. Discover Sustainability, 4. https://doi.org/10.1007/s43621-023-00153-7
Doerr, S., & Schaz, P. (2021). Geographic diversification and bank lending during crises. Journal of Financial Economics, 140(3), 768–788. https://doi.org/10.1016/j.jfineco.2021.02.004
Eka, P. I. (2023). Financial inclusion in Indonesia: Does education matter? Economics & Sociology, 16(2), 265–281. https://doi.org/10.14254/2071-789x.2023/16-2/16
Elimuu, R. J. (2019). The factors hindering access to loans: A case of Arusha District in Tanzania. Retrieved from http://repository.out.ac.tz/3059/1/DISSERTATION%20-%20RAY%20JAMES%20ELIMUU%20-%20FINAL.pdf
Finextra. (2021, September 8). How digital banking services are encouraging financial inclusion. Finextra Research. Retrieved from https://www.finextra.com/blogposting/20863/how-digital-banking-services-are-encouraging-financial-inclusion
Grant, M. (2024, March 12). Financial inclusion: Definition, examples, and why it's important. Investopedia. Retrieved from https://www.investopedia.com/terms/f/financial-inclusion.asp
Hayes, A. (2024, April 4). Economics defined with types, indicators, and systems. Investopedia. Retrieved from https://www.investopedia.com/terms/e/economics.asp
Kagan, J. (2024, February 28). Insurance: Definition, how it works, and main types of policies. Investopedia. Retrieved from https://www.investopedia.com/terms/i/insurance.asp
Kagan, J. (2022, May 31). What are savings? How to calculate your savings rate. Investopedia. Retrieved from https://www.investopedia.com/terms/s/savings.asp
Kagan, J. (2024b, February 28). What is a loan, how does it work, types, and tips on getting one. Investopedia. Retrieved from https://www.investopedia.com/terms/l/loan.asp
Khan, F., Siddiqui, M. A., & Imtiaz, S. (2022). Role of financial literacy in achieving financial inclusion: A review, synthesis, and research agenda. Cogent Business & Management, 9(1). https://doi.org/10.1080/23311975.2022.2034236
Liu, L. (2023). On the accessibility of financial services and income inequality: An international perspective. Technological and Economic Development of Economy, 29(3), 814–845. https://doi.org/10.3846/tede.2023.18722
Masterclass. (2022, October 22). Economic factors: How economic factors affect businesses. Masterclass. Retrieved from https://www.masterclass.com/articles/economic-factors
Mogaji, E. (2020). Consumers’ financial vulnerability when accessing financial services. Research Agenda Working Papers, Vol 2020, No 3, pp. 27-39. Retrieved from https://gala.gre.ac.uk/id/eprint/27968/7/27968%20MOGAJI_Consumers_Financial_Vulnerability_When_Accessing_Financial_Services_(Pub)%202020.pdf
Napoletano, E. (2022, April 4). What is investing? How can you start investing? Forbes Advisor. Retrieved from https://www.forbes.com/advisor/investing/what-is-investing/
News Releases - PBBM signs RA 11964 institutionalizing automatic LGU income classification. (2023, October 26). PCO.gov.ph. Retrieved from https://pco.gov.ph/news_releases/pbbm-signs-ra-11964-institutionalizing-automatic-lgu-income-classification/
Ni, A. Y., & Van Wart, M. (2022). Economic development. In Routledge eBooks (pp. 281–309). https://doi.org/10.4324/9781003178620-12
Ozili, P. K. (2023). Financial inclusion, sustainability, and sustainable development. In Contemporary Studies in Economic and Financial Analysis (pp. 233–241). https://doi.org/10.1108/s1569-37592023000110a01
Pandiella, A. G., & Pereira, A. (2022). Expanding access to finance to boost growth and reduce inequalities in Mexico. OECD Economics Department Working Papers. https://doi.org/10.1787/2de3cd7d-en
Sadeh, A., Radu, C. F., Fenişer, C., & Borşa, A. (2020). Governmental intervention and its impact on growth, economic development, and technology in OECD countries. Sustainability, 13(1), 166. https://doi.org/10.3390/su13010166
Sharma, C. A. K., & Pandey, R. K. (2022). The role of banks in ensuring financial inclusion. The Management Accountant, 57(12), 80. https://doi.org/10.33516/maj.v57i12.80-83p
Susilowati, E., & Leonnard, L. (2019, April 17). Factors influencing financial inclusion: Evidence from Indonesian micro data. ETIKONOMI. Retrieved from https://journal.uinjkt.ac.id/index.php/etikonomi/article/view/9070
Tiony, O. K. (2023). The impact of digital financial services on financial inclusion in Kenya. American Journal of Industrial and Business Management, 13(06), 593–628. https://doi.org/10.4236/ajibm.2023.136035
The impact of global financial exclusion. (n.d.). WorldRemit. Retrieved from https://www.worldremit.com/en/resources/global-financial-inclusion-and-exclusion
Trinajstić, M., Nižić, M. K., & Bogović, N. D. (2022). Business incentives for local economic development. Economies, 10(6), 135. https://doi.org/10.3390/economies10060135
Veena, M. B., & Anitha. (2022). Financial inclusion in India – An overview of financial inclusion initiatives. International Journal of Asian Economic Light, 7–17. https://doi.org/10.36713/epra11724
World Bank. (n.d.). Financial inclusion overview. The World Bank. Retrieved from https://www.worldbank.org/en/topic/financialinclusion/overview
Financial Inclusion Survey. (2021). Bangko Sentral ng Pilipinas. Retrieved from https://www.bsp.gov.ph/Inclusive%20Finance/Financial%20Inclusion%20Reports%20and%20Publications/2021/2021FISToplineReport.pdf
Election Results: Gainza, Camarines Sur. (n.d.). PHVOTE. Retrieved from https://ph.rappler.com/elections/2022/camarines-sur/gainza.
The authors and co-authors warrant that the article is their original work, does not infringe any copyright, and has not been published elsewhere. By submitting the article to GPH-International Journal of Business Management, the authors agree that the journal has the right to retract or remove the article in case of proven ethical misconduct.