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Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania

Author

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  • Xiao-Guang Yue

    (Rattanakosin International College of Creative Entrepreneurship, Rajamangala University of Technology Rattanakosin, Nakon Patom 73170, Thailand
    School of Sciences, European University Cyprus, Nicosia 1516, Cyprus)

  • Yong Cao

    (Research Institute of Big Data and Artificial Intelligence, Southwest Forestry University, Kunming 650224, China)

  • Nelson Duarte

    (CIICESI, School of Management and Technology, Porto Polytechnic, 4610-156 Felgueiras, Portugal)

  • Xue-Feng Shao

    (Business School, La Trobe University Sydney Campus, Sydney 2000, Australia)

  • Otilia Manta

    (Romanian Academy, Center for Financial and Monetary Research—Victor Slăvescu, 050711 Bucharest, Romania
    Romanian-American University, 012101 Bucharest, Romania)

Abstract

The challenges of financial systems have immediate or medium-term social effects. The financial industry is constantly searching for measures to reduce these challenges, especially for those with little or no access to financial services. While current communication technologies make services more accessible through digital mobile platforms, there are still difficulties in establishing viable customer arrangements. In addition to the increased investment in financial technologies, nonbanking financial institutions have now expanded to offer more flexible services tailored to individual circumstances, especially those in isolated rural areas. This research outlines the network model of nonbanking financial institutions in Romania, as well as a microfinance model, based on the financial analysis of four national indicators of nonbanking financial institutions. Data used are presented in absolute values, from the annual numerical series for the reference period 2007–2017. The new initiatives and features incorporated in this Romanian model should be applicable elsewhere and will actively contribute to the expansion and sustainability of financial services, with a positive inclusive impact on society.

Suggested Citation

  • Xiao-Guang Yue & Yong Cao & Nelson Duarte & Xue-Feng Shao & Otilia Manta, 2019. "Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania," JRFM, MDPI, vol. 12(4), pages 1-15, October.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:4:p:166-:d:281198
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    Cited by:

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    2. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    3. Mohamedou Bouasria & Arvind Ashta & Zaka Ratsimalahelo, 2020. "Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania," JRFM, MDPI, vol. 13(10), pages 1-28, October.
    4. Otilia Manta & Kostas Gouliamos & Jie Kong & Zhou Li & Nguyen Minh Ha & Rajendra Prasad Mohanty & Hongmei Yang & Ruihui Pu & Xiao-Guang Yue, 2020. "The Architecture of Financial Networks and Models of Financial Instruments According to the “Just Transition Mechanism” at the European Level," JRFM, MDPI, vol. 13(10), pages 1-24, October.

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