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Financial Inclusion: Enabler for Sustnable Development
Financial inclusion is essential in reducing poverty and fostering prosperity worldwide. This global initiative seeks to ensure individuals and businesses have access to useful, affordable financial products and services transactions, payments, savings, credit, insurance that meet their needs, delivered responsibly and sustnably.
The G20's commitment to advance financial inclusion globally underscores its significance. Notably, the World Bank Group perceives financial inclusion as a cornerstone for reducing extreme poverty and boosting shared prosperity.
Financial access facilitates dly life operations by enabling families and enterprises to plan for long-term objectives and unexpected emergencies. Accessing an account serves as a gateway to other financial services, enhancing economic growth potential significantly.
The ongoing COVID-19 crisis has underlined the necessity of digital financial inclusion. This involves leveraging cost-effective digital tools to reach currently unbanked populations with formal financial services tlored to their needs responsibly.
Progress toward financial inclusion is evident: from 2.5 billion inaccessibles in 2011 to 1.4 billion by 2021, an estimated 76 of the global adult population now has access to financial services as of 2021. However, with near-universal access in high-income economies, most unbanked individuals reside in developing countries.
Digital financial services, especially mobile money accounts, have significantly expanded coverage worldwide since their inception. As of early 2021, over 1.35 billion registered mobile money accounts were operational globally.
The next step involves moving from mere access to actual usage. The global financial inclusion landscape is rapidly evolving with new businessand innovative approaches that require strategic implementation, such as national financial inclusion strategies NFIS. These collaborative frameworks integrate efforts across sectors including finance, telecommunications, competition policy, education ministries, among others.
Strategic NFIS development has proven essential for countries ming to accelerate reforms. Research indicates a direct correlation between the adoption of NFIS and increased pace and impact of reforms.
In , financial inclusion is a pivotal element in promoting sustnable development through economic empowerment and access to essential services. By fostering a responsible ecosystem that prioritizes consumer protection and financial capability, we can ensure inclusive growth while mitigating risks associated with fintech advancements.
Updated: Sep 13, 2022
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Global Financial Inclusion Progress Sustainable Development through Access Digital Tools for Underserved Populations NFIS for Accelerated Reforms Implementation Mobile Money Accounts Expansion Worldwide Strategic Approach to Enhancing Financial Inclusion