FINANCIAL INCLUSION AS MEANS OF INCLUSIVE GROWTH: A REVIEW PAPER

ABSTRACT

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. Financial refers to all types of financial services, including credit, savings, payments and credit. An estimated 2 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions. For example, in Sub-Saharan Africa, only 24% of adults have a bank account even though Africa’s formal financial sector has grown in recent years. It is argued that as financial services can be viewed in that are significant positive externalities when more people and firms participate. The availability of financial services that meet the specific needs of users without discrimination is a key objective of financial inclusion.

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