Financial Development & Financial Inclusion

MicroMasters Program

Level:

Beginner/
Intermediate

Duration:

192 hours

Effort:

4-6 Hours weekly

Language:

Arabic/English

Price:

£ 2999

Why Financial Development & Financial Inclusion MicroMasters?

The link between financial development and sustainable economic growth is complex. The complexity of the relationship between financial development and economic growth requires the assessment of the factors affecting the relationship to determine the most effective policies. In this MicroMasters, we provide you with the various factors determining financial development in terms of the financial sector structure, contribution to the economy and financial inclusion in developing countries.

The course presents a framework for financial market development; identifying the main players and instruments, as well as highlighting the obstacles that could impede the development of such markets as well as policies that encourage the development of financial markets. The course introduces financial inclusion as an integral dimension of financial development—a perspective that has only recently received attention. The course reviews the indicators currently used to measure financial inclusion, its macroeconomic impact, and the main policy strategies usually pursued to encourage inclusion. The course makes use of extensive case studies, group work and workshops to ensure that participants are gain practical experience that is useful for to their jobs.

Through this comprehensive MicroMasters you will Identify a framework for financial market development and financial inclusion, and why they matter to economic growth and development. Measure the degree of financial development and inclusion for a country or countries using a wide range of standard indicators and use benchmarking to compare a country to its peers.

Who is this program for?

Participants are expected to have a basic knowledge of economics or finance, or equivalent work experience. Knowledge of econometrics is helpful but not required, this program is designed for:

Syllabus

  • Functional approach
  • Importance of contracts and contracting
  • Main players and their roles
  • Principal-agent relationships in finance
  • Types of financial contracts: credit, savings, and insurance
  • Types of borrowers: household, agriculture, business.
  • Financial Development — Case Study “Peer-to-Peer Lending and Crowdfunding”
  • Characterization of financial structure: banks vs. nonbank financial intermediaries, financial intermediaries vs. capital markets, debt vs. equity
  • Show how financial markets are organized in different regions of the world and the reliance on different types of financing
  • Financial structure and macroeconomic outcomes
  • Use of asymmetric information, transactions costs, other market imperfections to explain the structures we see within and across markets
  • Financial Structure—Case Study “What can we learn from theory, cross-country regressions and country case studies?
  • Banks to bonds.
  • Why banks are first to appear and dominate financial systems.
  • How and when to introduce fixed income instruments.
  • Risk gaps and developing the yield curve.
  • Overcoming banks’ resistance to bond market development.
  • Possible intermediate steps: private equity financing, mixes of stock and bond financing.
  • Case Study: Fixed Income Market Development:
    • When to Develop the Equity Market.
    • Why equity markets are the last to appear.
    • Family businesses and the equity markets.
    • How to encourage firms to go public.
    • Intermediating equity through mutual funds, private equity, venture capitalists.
    • The importance of institutional investors.
  • Case Study: Equity Market Development:
    • Secondary Markets and Liquidity Providers.
    • The needs of liquidity providers.
    • Types of liquidity providers in bond and stock markets.
    • Different types of secondary markets.
    • OTC vs. Exchange Markets.
  • Measurement issues:
    • Single indicators.
    • Broad-based concept of financial development and construction of composite indices.
  • Benchmarking.
  • Stylized facts on financial across countries and over time.
  • Fintech, Cryptocurrency and Financial Development:
    • Defining and understanding Fintech.
    • Determinants of future Fintech landscape and possible paths of evolution.
    • Understanding Distributed Ledger Technology (Blockchain) and Virtual (Crypto-) Currencies.
  • Financial Evolution and Financial Crisis:
    • The relationship between financial liberalization and financial crisis.
    • Can excessive development of financial markets be harmful?
    • Credit booms—good and bad.
  • Shadow Banking:
    • Definition of shadow banking.
    • Why and how does shadow banking develop?
    • What are the benefits and dangers?
    • How to regulate shadow banks.
  • Regulation and financial development:
    • Justifications for financial regulation.
    • Market imperfections and financial development.
    • Macroeconomic and financial stability.
    • Regulations that affect banking development.
    • Regulations that facilitate innovation.
  • What is financial inclusion, how does it differ from financial development?
  • Measurement: supply-side, user-side, enabling environment.
  • Financial inclusion for households and for firms.
  • Cross-country variation in financial inclusion.
  • Recent trends.
  • Limitations of current measures and search for more informative indicators of financial inclusion.
  • Recent evidence on macroeconomic effects.
  • Financial underdevelopment/exclusion as a series of market frictions.
  • Benefits and tradeoffs in removing frictions.
  • Contrasting partial with general equilibrium effects.
  • Definition and assessment of financial capability.
  • Financial literacy as a first step.
  • Financial capability as a key component of financial inclusion.
  • Approaches to enhancing financial capability.
  • Meta-analysis of financial capability interventions.
  • The case of a large-scale capability intervention.
  • Alternative delivery channels for financial education.
  • SME financing:
    • A primer: what’s different about SMEs?
    • SMEs and the economics of family businesses.
    • The experience so far: what works for SME finance?
    • Exploring lending technologies that might work for SMEs: leasing, factoring, equity crowd-funding, peer-to-peer lending.
  • State banking:
    • Theories of the role of the state in banking.
    • Worldwide experience with state banks.
    • Credit guarantees.
  • Microfinance:
    • Characterization of microfinance.
    • A model of microcredit.
    • Experience with microcredit throughout the world.
  • People-Centered Policy (PCP) and the Role of Government.
  • Mobile banking in Kenya (M-Pesa) and beyond:
    • Recent financial inclusion strategy in India.
    • Banco Azteca in Mexico.
    • The U.S. subprime crisis: a case of excessive financial inclusion?
    • Government policies to promote SME financing in Korea.
  • Problem Statement & Problem Tree:
    • Financial inclusion challenge.
    • Solutions Tree & Solutions Bundling.
    • Stakeholder Analysis & Prioritizing Solutions.
    • From Solutions to Policy & Theory of Change.
  • Monitoring and Evaluation & Implementation Plan.

Key Programme Takeaways

  • Identify the main players and instruments needed for financial market development.

  • Use a simple analytical model to predict the likely outcomes of different policies on financial inclusion.

  • Assess policy options and strategies for financial development and inclusion from a macroeconomic perspective by identifying potential tradeoffs and possible impediments.

  • Understand the unique challenges SMEs face accessing finance. Describe how financial intermediaries can better tailor their products to the needs of the SMEs.

  • Evaluate how government policies can improve the lending environment for SMEs and understand the role of state banks and MDBs, including their role in mitigating risks.

  • Understand various uses of technology in the financial sector (Fintech) and how they could be used to improve the efficiency and inclusiveness of financial services without generating financial instability.

Your Learning Journey

The first week is orientation week. During this week you will be introduced to the other participants in the class from across the world and you will learn about the track details, materials, assignments, and final project.

On other weeks, you have learning goals set for the week. The goals would include the online interactive lectures and completing the assignments. All assignments need to be submitted within one week.

The programme features weekly live online sessions with industry practitioners who are available to help you clarify your doubts pertaining to the content. Assignments are graded by the program faculty.

Discussion boards are an integral part of each module and provide a forum where participants can interact, share ideas, and ask questions.

Live webinars with Everest Business School provide opportunity for additional instruction as well as Q&A sessions for the group.

The Programme Support team will follow up over emails and phone calls with learners who are unable to submit their assignments on time or have any other concerns during the learning journey till sending the MicroMasters’ final grade.