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Improving financial education to the poor at the bottom-of pyramid: The role of social finance vis a vis financial institutions

Arsyianti, Laily Dwi and Kassim, Salina (2016) Improving financial education to the poor at the bottom-of pyramid: The role of social finance vis a vis financial institutions. International Journal of Islamic Business Ethics, 1 (1). pp. 44-52.

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Abstract

This paper aims to explore the role of Islamic social finance and financial institutions in contributing towards improving financial inclusion through financial education among the poor. While there have been a lot of efforts undertaken by financial institutions, especially microfinance institutions, to achieve the financial inclusion agenda, the financial inclusion programs would normally require high operational costs which many financial institutions would consider them as not commercially viable. The costs then are transferred back to the customers, resulting in the financing/ credit cost higher than commercial financial institutions. As a result, incidences of bankruptcyincrease when the cost of credit is higher. Thus, financial education is essential for average family in managing their day to day financial resources. While financial institutions keep busy with financial inclusion agenda and trying to find the best way without disturbing their core business agenda, Islam offers social finance institution (amil and nadzir) as the solution to this problem.

Item Type: Article (Journal)
Additional Information: 4600/52253
Uncontrolled Keywords: Islamic social finance institutions, Islamic financial institutions, financial education, financial behaviour
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG179 Personal finance
H Social Sciences > HT Communities. Classes. Races > HT101 Urban groups. The city. Urban sociology
Kulliyyahs/Centres/Divisions/Institutes: Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Salina Kassim
Date Deposited: 12 Oct 2016 12:10
Last Modified: 22 May 2018 09:08
URI: http://irep.iium.edu.my/id/eprint/52253

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