What is Financial Inclusion?

Microfinance
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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.

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Teacher, India
 

Demands on an Inclusive System

Financial inclusion means all financial, insurance, banking and credit facilities for all without any exception must be ...

  RIchard Langlais, United Kingdom
 

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Financial inclusion is a global economic initiative, which serves to eliminate the negative financial status of low inco...

  Abhishek Saxena
Project Manager, India
 

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The article itself mentions “traditionally banks were unable to serve the base of the pyramid”... Will financial inclusi...

  John Michael Donohue
Manager, United States
 

Microfinance and Financial Inclusion

Economic development at the individual/household level is conditioned on certain institutions of capitalism, which in th...

  John Moses
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Financial inclusion should be pursued with a great passion by governments across the globe especially among the less dev...

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Financial Inclusion is Now a Common Objective

Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low incom...

  Juan Bravo
Management Consultant, Ecuador
 

Microfinance is a Form of Inclusion

In my opinion, microfinance is a form of inclusion for the most vulnerable groups in rural areas. We need to develop spe...

  Sabo Victor Emmanuel
Nigeria
 

Financial Inclusion: Whose Objective Should it Be?

Considering the aim of this policy, I think financial inclusion should be the objective of the government and not of cor...

  Luisa Pineda Martinez
Guatemala
 

Financial Inclusion

There should be a lot of expectancies around this subject, for what I read. As a manager could do a social analysis of t...

  Saikat Basak
Accountant, India
 

Financial Inclusion Definition

Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credi...

  Amwonya Aggrey
Business Consultant, Uganda
 

Financial Inclusion

Financial inclusion is a recent term used to indicate the aim of serving more people with financial products (services)...

 

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