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Empowering the Unbanked: How Technology Transforms Microfinance

Lennhammer, Matilda LU (2025) NEKH02 20242
Department of Economics
Abstract
The aim of this study is to examine the implications of technological advancements on micro- loans and to assess whether these changes have influenced the standard of living for individuals living in extreme poverty. To achieve this, a panel dataset comprising 37 individual data points over a 19-year period is utilized. The analysis is conducted using a Fixed Effects regression model for the first part of the study and a Random Effects regression model for the second part to account for the characteristics of panel data. The analysis is grounded in previous research and theoretical frameworks, including Schumpeterian Growth Theory, the Diffusion of Innovations model, and the concept of Financial Inclusion. These frameworks provide a basis... (More)
The aim of this study is to examine the implications of technological advancements on micro- loans and to assess whether these changes have influenced the standard of living for individuals living in extreme poverty. To achieve this, a panel dataset comprising 37 individual data points over a 19-year period is utilized. The analysis is conducted using a Fixed Effects regression model for the first part of the study and a Random Effects regression model for the second part to account for the characteristics of panel data. The analysis is grounded in previous research and theoretical frameworks, including Schumpeterian Growth Theory, the Diffusion of Innovations model, and the concept of Financial Inclusion. These frameworks provide a basis for the discussion and help establish the relevance of the results. The findings indicate that an increase in mobile cellular subscriptions have had a small but positive impact on access to microloans. Furthermore, the results suggest that improved access to microloans contributes to an enhanced standard of living for those living in extreme poverty. However, certain limitations, such as an unbalanced dataset and potential measurement errors, must be considered when interpreting the results. In conclusion, while this study highlights some significant results, it also underscores the need for more comprehensive and reliable data collection methods in future research to strengthen the validity of such analyses. (Less)
Please use this url to cite or link to this publication:
author
Lennhammer, Matilda LU
supervisor
organization
course
NEKH02 20242
year
type
M2 - Bachelor Degree
subject
keywords
Technology, Innovations, Microfinance institutions (MFIs), Microloans, Poverty
language
English
id
9182513
date added to LUP
2025-05-16 10:44:42
date last changed
2025-05-16 10:44:42
@misc{9182513,
  abstract     = {{The aim of this study is to examine the implications of technological advancements on micro- loans and to assess whether these changes have influenced the standard of living for individuals living in extreme poverty. To achieve this, a panel dataset comprising 37 individual data points over a 19-year period is utilized. The analysis is conducted using a Fixed Effects regression model for the first part of the study and a Random Effects regression model for the second part to account for the characteristics of panel data. The analysis is grounded in previous research and theoretical frameworks, including Schumpeterian Growth Theory, the Diffusion of Innovations model, and the concept of Financial Inclusion. These frameworks provide a basis for the discussion and help establish the relevance of the results. The findings indicate that an increase in mobile cellular subscriptions have had a small but positive impact on access to microloans. Furthermore, the results suggest that improved access to microloans contributes to an enhanced standard of living for those living in extreme poverty. However, certain limitations, such as an unbalanced dataset and potential measurement errors, must be considered when interpreting the results. In conclusion, while this study highlights some significant results, it also underscores the need for more comprehensive and reliable data collection methods in future research to strengthen the validity of such analyses.}},
  author       = {{Lennhammer, Matilda}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Empowering the Unbanked: How Technology Transforms Microfinance}},
  year         = {{2025}},
}