Financial Inclusion for Development
Financial Inclusion for DevelopmentPrepared byMohammad Omar FarukBBA & MBA (Finance)Dhaka, BangladeshDevelopment Finance Impact Project Digital Artifact
landless laborsunorganized enterpriseswomenmigrantsurban slum dwellers
Financial Inclusion Scenario
Globally, 1 in 2 adults does not have a formal bank account.About 80% of the poor living under $2/day have no bank accounts
Access to finance will enable the best use of resources.More people with the financial system = more investment, employment and development
in developing economies lack access to affordable financial services and credit.In developing economies, of small firms believes access to finance as a major obstacle to their operations.
Without access to formal financial services, poor families must rely on informal mechanisms.
Is this the reason for
Financial Inclusion has positive impact on economic Indicator:
Main obstacles of Financial Inclusionbarriers such as cost, travel distance, and documentation requirementsThe poor, women, youth, and rural residents tend to face greater barriers to access.Among firms, the younger and smaller ones are confronted by more binding constraints.The use of financial services is constrained by regulatory impediments prevent people from accessing beneficial financial services
Financial inclusion is an enabler and accelerator of economic growth, job creation and development.
Affordable access to, and use of, financial services helps families and small enterprise owners generate income, manage irregular cash flow, invest in opportunities, strengthen resilience to shocks, and work their way out of poverty.
Financial Inclusion can be expanded through: Easy access to Finance More bank branch and ATMIntroduction of Internet BankingMicro-Finance ProgramFinancial Services of NGOsMicro-Insurance ServicesEasy process of Account opening in BankLess costly bank accountMobile Banking Video BankingBank on VanFinancial Education
The government, official aid provider or private sector MUST participate in Financial Inclusion Program Because:Financial Inclusion is the pre-requisite for Economic Development Financially included people can be self depended.Financial Inclusion can generate employment.Access to finance is associated with innovation, job creation, and growth More investment > Higher production & GDPFinancial aid can help people to be entrepreneurs.Financial access improves local economic activity.Financial Inclusion offers the potential for increasing banking business