Financial Inclusion

Many people around the world lack access to basic financial services. Without a bank account, it can be harder to receive wages, save safely, borrow at reasonable rates, insure against risks or build a credit history.

Financial inclusion is seen as important for reducing poverty and supporting economic development. Access to savings and credit can help families manage emergencies, invest in education and start small businesses. Access to insurance can protect them from financial disaster after illness, crop failure or natural disaster.

For example, mobile money services such as M-Pesa in Kenya have allowed millions of people without bank accounts to send, receive and store money using basic mobile phones, significantly increasing financial inclusion.

Barriers to financial inclusion include poverty, lack of identity documents, distance from bank branches, high fees, low financial literacy and distrust of financial institutions. Governments, international organisations and businesses work to address these through digital payments, simplified accounts, identity programmes and financial education. Financial inclusion also matters in wealthy countries, where some people remain underserved by mainstream financial services.