This study aims to examine the impact of social and financial inclusion on the welfare of the impoverished through a Waqf-based microfinance organization.
This study used a structured questionnaire to collect primary data from 282 respondents, 150 of whom were customers and 132 of whom were not customers of an Indonesian Waqf-based microfinance organization. The impacts of financial and social inclusion on well-being were examined using generalized least squares with random effects.
This study discovered that financial inclusion has little influence on customer well-being, but it significantly improves the well-being of non-customers. Social inclusion, on the other hand, has a major influence on improving the well-being of consumers but has little effect on noncustomers. This study demonstrates that financial and social inclusion have varied effects on the well-being of two distinct groups of respondents.
These findings have significant implications for Waqf-based microfinance to restructure its programs to enhance financial inclusion by promoting financial literacy and developing partnership with commercial financial institutions.
Previous study examined into qard hassan’s contribution to financial inclusion and well-being, but the impact of social inclusion on well-being has received less attention. Thus, the objective of this research is to understand how financial and social inclusion might improve the well-being of Waqf-based microfinance customers.
