Search Results (62)

Microfinance institutions (MFIs) are vital in promoting financial inclusion for underserved populations. However, these institutions face growing security threats, including sophisticated burglary tactics like underground tunneling. In the Philippines, notable incidents, such as the “Termite Gang” heist in Marikina City and a mall robbery in Ozamiz, highlight the limitations of conventional security systems in addressing subterranean intrusions. This study addresses the gap in existing security technologies by developing a real-time detection system that integrates a vibration sensor, a Global System for Mobile Communications (GSM) module for sending real-time SMS alerts, an audible alarm, and a solar-powered backup system for continuous operation. The system was simulated in the electrical technology laboratory to enhance classroom learning. The system’s core is an Arduino Uno microcontroller that processes inputs from the SW-420 vibration sensor, activating alarms and triggering SMS notifications via the SIM900A module when it detects unusual vibrations. Simulations A, B, and C were conducted to evaluate the system’s response time, with results showing a progressive reduction in detection time from five seconds to one second, indicating improved calibration and system efficiency. These findings also support the existing literature on user interaction with vibration alerts, demonstrating high accuracy in interpreting haptic notifications and the cognitive trade-offs involved. The proposed solution offers a proactive, energy-resilient, and cost-effective security system specifically designed to address underground burglary attempts. It applies to MFIs, pawnshops, and other high-risk financial environments. Future research should explore the application of machine learning for adaptive threat detection, expand the system’s scalability, and integrate mobile applications to enable user customization and enhance alert management. Full article

This study examines how heritage-based small and medium enterprises (SMEs) cope with economic shocks and institutional constraints in a semi-urban context. The study focuses on identifying context-specific barriers that shape SME growth and sustainability in heritage-based, semi-urban settings. Using a mixed-methods design, survey data from 200 SMEs were analyzed with PLS-SEM, and 20 semi-structured interviews were examined through thematic analysis, collected in Kashan, Iran (March–May 2025). We find that inflation and limited access to finance are the primary barriers to firm growth, followed by regulatory delays and administrative complexity. Qualitative findings reveal five recurring adaptive routines, short-cycle cash management, cooperative input purchasing, product simplification/micro-pivoting, reliance on local networks, and minimalist digitalization, that operate in a discernible temporal sequence to sustain firm continuity. By integrating resource-based and institutional perspectives, the paper advances meso-level theorizing on SME resilience and proposes a set of low-cost, actionable policy measures (e.g., streamlined e-licensing, targeted mobile microfinance, and buyer–supplier matchmaking) for local authorities and development practitioners. Full article

Financial exclusion remains a critical barrier to sustainable economic development in emerging economies, particularly among microentrepreneurs who depend on informal financial credit (IFC) to sustain their livelihoods. This study aims to examine the determinants and consequences of IFC utilization and their relationship with distinct delinquency patterns among microentrepreneurs in the Peruvian Amazon. A cross-sectional survey was administered to 310 microentrepreneurs from the central market of Yurimaguas during the first quarter of 2024 using partial least squares structural equation modeling (PLS-SEM). Four determinants of IFC—motivation, lender choice, loan conditions, and financial stress—were tested alongside their influence on three delinquency types: accidental, intentional, and negligent. The results indicate that psychological motivation and social lender choice are the primary and statistically significant drivers of IFC utilization, whereas loan conditions showed no significant association. Regarding delinquency outcomes, IFC is significantly and positively associated with accidental and intentional delinquency, yet paradoxically shows a significant negative association with negligent delinquency, suggesting that trust-based social enforcement mechanisms embedded in informal lending relationships may constrain negligent default behavior. These differentiated effects underscore the dual nature of informal credit as both a livelihood-sustaining mechanism and a source of financial vulnerability. The findings contribute to the understanding of financial sustainability in excluded populations by providing empirical evidence that effective interventions must address the psychological and relational dimensions of credit behavior, rather than focusing solely on structural loan characteristics. Key limitations include the cross-sectional design, which precludes causal inference, and the geographic focus on a single market in the Peruvian Amazon, which restricts generalizability. This study offers actionable insights for policymakers and microfinance institutions seeking to design inclusive financial strategies aligned with Sustainable Development Goals 1 (No Poverty), 8 (Decent Work and Economic Growth), and 10 (Reduced Inequalities). Full article

This study investigates the probability of consumer default across both secured and unsecured assets, with a particular focus on borrower behavior and the role of moral hazard in shaping individual credit risk. It examines how different borrower decisions, such as investing in secured and unsecured projects after loan disbursement, affect default outcomes, especially under limited lender supervision. The Ornstein–Uhlenbeck process is used to capture the dynamics of risky asset returns and identifies the conditions under which borrowers are likely to switch from safer to riskier investments. We assume that borrowers may allocate loan funds to both secured and unsecured projects, thereby recognizing that credit risk assessment inherently involves behavioral factors that are difficult to quantify. Monte Carlo simulations are used to assess how return volatility influences borrower decision-making, showing that higher uncertainty increases the probability of returns exceeding the repayment obligation, thereby incentivizing risk-shifting behavior. The results indicate that unsecured lending is more exposed to strategic risk shifting and experiences more frequent and severe default outcomes than secured lending. As a result, this study recommends that microfinance institutions prioritize collateral-backed lending as a more effective strategy for mitigating credit risk and reducing exposure to borrower opportunism. Full article

Access to finance is believed to be a key enabler that enhances women’s entrepreneurship and improves business performance, sustainability, and their empowerment. Despite its importance, scholarly literature has mentioned financial challenges as one of the factors that hinder women’s entrepreneurship success, not only in South Africa but also in other developing countries. There is, however, scant literature regarding the enablers that help women entrepreneurs navigate financial challenges in South Africa. To address this gap, this study conducted a systematic review of literature, where 21 documents drawn from Google Scholar, Scopus, and Google databases were used to identify the enablers that help women entrepreneurs navigate their financial challenges in businesses. Identified enablers that help women entrepreneurs navigate their financial challenges include stokvels, government finance programs, banks, Microfinance Institutions (MFIs), and financial education programs. The study shows how women entrepreneurs navigate financial gaps through informal networks, MFIs, and banks, while government support, institutional innovations, and tailored financial products promote sustainable business growth. The study also highlights the need for governments, banks, MFIs, universities, and NGOs to improve awareness, accessibility, gender-sensitive financial services, digital solutions, training, and mentorship for women entrepreneurs and, therefore, promote sustainable entrepreneurial growth. Full article

This study examines how inclusive finance organisations are adapting to the European Union (EU)’s digital–green twin transition and how regulatory design can reinforce this alignment. Drawing on qualitative insights from 26 institutions—including microfinance organisations, small and medium-sized enterprise finance providers and socially oriented fintechs—across the EU and neighbouring countries, the analysis identifies how digitalisation, financial inclusion and environmental sustainability are being integrated into organisational strategies. The findings show that hybrid models, built on partnerships between nationally rooted microfinance institutions and cross-border fintech platforms, enable scalable, high-tech, high-touch ecosystems that align closely with sustainability objectives. The study argues that a coordinated EU-wide regulatory sandbox would advance inclusive, green financial innovation and build resilience across the inclusive finance ecosystem. Full article

This paper presents a systematic review of Tunisian stakeholders’ perceptions of integrating gender into green microfinance business models, analyzed through the lens of the Business Model Canvas (BMC). This systematic review of 32 studies indicates a dual perception of women as both vulnerable victims and active agents in the ecological transition. The BMC-based analysis reveals major weaknesses in the value proposition, distribution channels, and cost structures of gendered green microfinance offerings. Furthermore, we highlight the underexplored role of regulatory frameworks as levers for business model innovation. This study offers an original analytical framework that links gender, environmental sustainability, and microfinance business models, providing actionable insights for policymakers and microfinance institutions seeking to foster inclusive and sustainable financial ecosystems in Tunisia and similar contexts. Full article

Islamic Microfinance Institutions (IMFIs) encounter distinct difficulties with credit scoring because they need to follow Shariah principles that combine riba bans with fair financial dealings regulations. Conventional credit scoring models exhibit two shortcomings: a poor capability to incorporate non-financial behavioral data and inadequate support for Islamic Microfinance Institutions’ requirements. Researchers use machine learning coupled with blockchain technology to create an adaptive Shariah-compliant credit scoring method that solves problems found in standard evaluation systems. Using a dataset of 1275 farmers with 52 weeks of transaction data, we implemented and compared three ML models: Linear Regression, Random Forest, and Gradient Boosting. Data preparation involved addressing 53% missing transaction data, followed by summing weekly financial activity to prepare it for predictive evaluations. Our analysis shows that the Random Forest model produced the best results with an R-squared value of 0.87 and a Mean Squared Error (MSE) of 12.4. In creditworthiness binary classification tasks, Gradient Boosting delivered an F1 score of 0.91 while maintaining precision at 0.89 and recall at 0.93. Blockchain integration exists to protect data through secure mechanisms that also conserve Islamic financial integrity and promote transparency. The research shows how ML and Blockchain technology enable fundamental changes in IMFIs by delivering elevated predictive accuracy, operational enhancements, and complete transparency. The conceptual framework guides ethical financial inclusion strategy by offering a solution for marginalized communities, but remains consistent with global sustainability objectives. The research established foundational elements for implementing cutting-edge technologies within IMFIs, which will promote new economic growth and build confidence in Shariah-compliant financial systems. Full article

This paper investigates credit risk management as a dynamic system. Panel Vector Autoregression (PVAR) is employed to model interrelationships among four key components: Non-Performing Loans (NPLs), Loan Loss Provision (LLP), loan charge-off (LCO) and capital. The Cost-to-Income ratio (CIR) and Size and Net Profit-to-Equity ratio (ROE) are used as control variables. The panel dataset comprises 1461 conventional rural banks in Indonesia with a quarterly frequency from June 2010 to March 2024. There are several key findings of this study. First, credit risk management practices in rural banks predominantly follow an incurred loss approach, although the expected loss model appears to be more commonly adopted by larger institutions. Second, capital serves a critical function as a buffer against credit losses. Third, subsample investigation reveals a significant role of accounting discretionary. This study offers significant implications for both policy development and academic research in microfinance. Full article

In recent years, the financial sustainability and survival of microfinance institutions (MFIs) have been seriously threatened by factors such as the reduction in donations, cooperation funds and international aid, and increased competition from commercial banks. Faced with this hostile scenario, which may limit access to credit for disadvantaged groups, MFIs must apply techniques to improve their efficiency, viability, lending capacity and survival. The objective of this study is to design a microcredit pricing model based on the Internal Ratings-Based approach, Basel III and probability of default to enhance access to credit for disadvantaged groups. We analysed a sample of 4550 microcredit transactions and 30 influential variables (25 idiosyncratic and 5 systemic). Our empirical results reveal that the IRB system is more equitable for borrowers and more efficient for MFIs, as it allows lower interest rates to be applied to borrowers with better credit histories. The application of the proposed IRB model can improve the sustainability, competitiveness and viability of MFIs by promoting operational efficiency and reducing default rates, thus contributing to financial inclusion by increasing supply. Full article

This paper explores the factors influencing the sustainability of microfinance programmes in the OR Tambo Coastal District (ORTCD) in the Eastern Cape, South Africa. The paper questions whether the services offered to microfinance clients can facilitate loan repayment and the sustainability of microfinance programmes. Precisely, the paper examines how the combination of financial and non-financial services facilitates loan repayment and the sustainability of these programmes. In the study, the recipients of microfinance loans in the OR Tambo Coastal District of the Eastern Cape were interviewed about the services offered by microfinance institutions. The study adopted a qualitative research approach and collected data through semi-structured interviews with recipients of microfinance loans in ORTCD. The collected data was analysed thematically following Braun and Clarke’s six-step approach, ensuring that codes and themes emerged inductively from participants’ narratives. The obtained results revealed that loan repayment and programme sustainability are shaped by the interdependent role of financial services (loan type and loan size) and non-financial services (technical assistance and client-institutional relationships). However, weak institutional ties and limited monitoring threaten long-term programme outcomes. The study’s findings suggest that combining financial and non-financial services improves repayment capacity, institutional confidence, and sustainability, particularly in underserved rural communities. Therefore, the study recommends strengthening training frequency, establishing continuous client evaluation mechanisms, and integrating institutional perspectives to improve the sustainability of microfinance interventions. Full article

Small and Medium Enterprises (SMEs) are vital to economic growth, innovation, and job creation across Sub-Saharan Africa (SSA). Women entrepreneurs are key contributors to this sector, yet they face persistent barriers to accessing finance, which constrain their business growth and broader economic participation. This study investigates the role of financial institutions in closing the financing gap for women-owned SMEs and assesses the effectiveness of various financing mechanisms, including traditional banking, micro-finance, fintech innovations, and government-backed credit schemes. Adopting a quantitative approach, this study utilises structured surveys with women SME owners across multiple SSA countries. Supplementary secondary data from sources such as the World Bank and national financial statistics provide additional context. Econometric modelling and Structural Equation Modelling (SEM) are employed to identify key factors influencing loan accessibility, such as collateral requirements, interest rates, financial literacy, and the regulatory environment. Findings reveal that high collateral demands and interest rates remain major obstacles, particularly for smaller or informal women-led enterprises. Financial literacy emerges as a critical enabler of access to credit. While fintech solutions and digital lending platforms show promise in improving access, issues around infrastructure, regulation, and trust persist. Government-backed schemes also contribute positively but are hindered by implementation inefficiencies. This study offers practical recommendations, including the need for harmonised regional credit reporting systems, gender-responsive policy frameworks, and targeted financial education. Strengthening digital infrastructure and regulatory support across SSA is essential to build inclusive, sustainable financial ecosystems that empower women entrepreneurs and drive regional development. Full article

This study examines the role of microfinance institutions (MFIs) in advancing sustainable development by integrating environmental and social objectives into their operations. Using panel data from 30 MFIs across nine countries (2018–2023), the analysis applies Ordinary Least Squares (OLS), Instrumental Variables (2SLS), and Generalized Method of Moments (GMM) to assess policy impacts over time. “Access to environmental finance” is used as a validated instrument to address endogeneity. Results show that green lending and environmental risk management significantly reduce greenhouse gas emissions and improve gender empowerment. Larger institutions with stronger governance achieve better outcomes, and dynamic models (GMM) confirm the persistence of these effects over time. The findings highlight the importance of regulatory support, green finance infrastructure, and institutional capacity-building for scaling sustainable microfinance. Full article

This paper explores how credit risk management and human capital development sustain financial stability in microfinance institutions. Both qualitative and quantitative research methods allow this study to investigate credit risk management strategies while examining policies for inclusivity plus incentive plans along with debt portfolio selection efficiency. This research emphasizes that financial operations depend on skilled employees who require motivating interventions alongside training programs while developing ethical practices. The research discovers that organizations with strong credit risk management frameworks along with dedicated personnel achieve enhanced financial performances and reduced default incidents. This study confirms that microfinance institutions need both superior risk management along with human resource development systems to achieve sustainable development. This study enriches economic development research by demonstrating that implementing an equal mixture of financial and human resources produces successful economic results. Full article