What is Financial Inclusion?

Knowledge Center

Best Practices

Sign up

Jaap de Jonge
Editor, Netherlands

What is Financial Inclusion?

As explained above, microfinance was an initial, PRIVATE effort pioneered by Muhammad Yunus to reduce poverty by giving impoverished entrepreneurs access to microcredits and other financial products and services.
In 1976 Yunus started the Grameen Bank in Bangladesh. In 2006 the Grameen Bank and its founder Yunus were awarded the Nobel Peace Prize.
However, according to the United Nations (UN), three billion people around the world still do not have access to formal financial services like savings accounts, credit, insurance, and payment services. More than half the population in developing countries and more than 80 percent of households in most of Africa are financially excluded.
On 29 December 2003, Former UN Secretary-General Kofi Annan said: ”The stark reality is that most poor people in the world still lack access to sustainable financial services, whether it is savings, credit or insurance.
Financial Inclusion (FI) (from ±2004) is an economic POLICY of various governments and NGOs that (also) aims at giving disadvantaged or low income households and enterprises access to a COMPLETE RANGE of financial / banking services at affordable costs through building an entire INCLUSIVE FINANCIAL SYSTEM.
Financial inclusion includes many products and services like: savings facilities (microsavings), short and long-term credit, micro credits, loans, leasing and factoring, mortgages, insurance (microinsurance), pensions, payments, micropayments, credit and debit cards, overdrafts, cheques, local money transfers, electronic fund transfer (EFT), international remittances, pensions, and last but not least financial advice, coaching and education.
Compared to microfinance, financial inclusion is more comprehensive, more systemic and more public.
Compared to financial inclusion, microfinance was initially more focused on microcredits, more practical, and more private.
Financial inclusion is also referred to as: Inclusive Finance.

  Gabriel Femi Adewara
Management Consultant, Nigeria

Financial Inclusion Should Be the Policy Framework to Drive Microfinance

Obviously, microfinance institutions are failing t (...)

  Laxminarayan Katti
Student (MBA), India

Financial Inclusion: Innovation and Education

Banking the unbanked is financial inclusion. To re (...)

Teacher, India

Demands on an Inclusive System

Financial inclusion means all financial, insurance (...)

  RIchard Langlais

Financial Inclusion and Credit Unions

Financial inclusion is a global economic initiativ (...)

  Abhishek Saxena
Project Manager, India

Financial Inclusion & Development

The article itself mentions “traditionally banks w (...)

  John Michael Donohue
Manager, United States

Microfinance and Financial Inclusion

Economic development at the individual/household l (...)

  John Moses
Manager, Nigeria

Financial Inclusion - Key to Achieving an Effective Financial Empowerment

Financial inclusion should be pursued with a great (...)

  Vishnu R. Padhiyar

Financial Inclusion is Now a Common Objective

Financial inclusion is the delivery of financial s (...)

  Juan Bravo
Management Consultant, Ecuador

Microfinance is a Form of Inclusion

In my opinion, microfinance is a form of inclusion (...)

  Sabo Victor Emmanuel

Financial Inclusion: Whose Objective Should it Be?

Considering the aim of this policy, I think financ (...)

  Luisa Pineda Martinez

Financial Inclusion

There should be a lot of expectancies around this (...)

  Saikat Basak
Accountant, India

Financial Inclusion Definition

Financial inclusion may be defined as the process (...)

  Amwonya Aggrey
Business Consultant, Uganda

Financial Inclusion

Financial inclusion is a recent term used to indic (...)

Start a new topic


More on Microfinance:
Special Interest Group

Do you have a keen interest in Microfinance? Become our SIG Leader

Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2022 12manage - The Executive Fast Track. V15.8 - Last updated: 17-1-2022. All names ™ of their owners.