Definition of financial inclusion

Definition of financial inclusion

Financial inclusion is the set of measures put in place to combat banking and financial exclusion. It encompasses a range of financial and non-financial products and services made available to the poor.

Among the financial services, we can mention:

Non-financial services cover a wider range. It may be:

As well as microfinance (see the definition of microfinance), financial inclusion aims to broaden access to affordable and responsible (non-banking) and (non-financial) products and services for populations excluded from the traditional banking system. To ensure that as many people as possible are included in the financial system and that they benefit from appropriate banking services, a range of products and services have been developed, the best known being microcredit. But there are now financial services that meet needs that go far beyond microcredit: money transfers, micro-savings, microinsurance, micro-pension. Well designed and in the hands of strong and responsible actors, these products have enormous potential for development.

Financial inclusion enables poor people to finance their activities, save, support their families and protect themselves from the risks of daily life. Their distribution on the market is ensured by various financial institutions: microfinance institutions (MFIs), cooperatives, microinsurance providers, banks, etc. It is essential that these distributors adopt a responsible and social approach to their activities in order to achieve the primary objective of financial inclusion: to fight poverty. However, many challenges remain for these distributors: the challenge is to serve the interests of the poor while ensuring their own economic viability.


 

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