How Financial Inclusion Can Lift The Country Economy

Financial inclusion means that anyone and everyone should get access to financial services, regardless of how much money they have or make. AILabPage insists that “access to financial services should be a basic human right”. Even people who are poor or vulnerable can access and use financial services and products, which is the main goal. It improves the economy and helps things grow. This rule is for both individuals and businesses. When everyone can use financial services to get access to money in a country, it makes the economy better. Ensuring that everyone can use financial services is the only way to help a country’s economy grow.

Introduction – Financial Inclusion

The questions that keep emerging in my mind are: Will rising innovations in the mobile money domain help to close the financial gender gap? or/and will it help to help women in particular who are more vulnerable to increased financial burdens, like the ones that arise when sick-minded men abandon their responsibilities of providing basic needs for their families?

The problem is compounded by largely closed-minded, oppressive societies that bar women from owning land or properties or even allowing them to save for their future and their children, etc. The question stands: where do these people go to claim their basic rights that have been left behind by communities, segments, and formal financial institutions?

Financial Inclusion – Need of Hour

Financial inclusion is not just about banking; it’s about empowering individuals and communities to participate fully in the economic life of a nation. By removing barriers to financial access and providing opportunities for all, we can unlock the untapped potential of countless people, paving the way for economic growth, stability, and shared prosperity. In a financially inclusive society, everyone has a seat at the table, and together, we can build a brighter economic future.

African countries don’t usually talk about it directly in their policies. We need to pay more attention to helping women be part of financial decisions. There are many areas where we can improve this. People who make policies should use information like numbers, surveys, and more research to understand the market they are working with and the limitations, and use this knowledge to make better policies.

1. Enhanced Economic Growth – Financial inclusion means giving people and businesses the chance to use different types of financial services, such as loans, savings accounts, insurance, and other money-related services.
   • This access to capital and financial tools fosters a good and strong platform for starting businesses, encourages investment and promotes economic growth. It helps people start and expand their businesses, which creates jobs, contribute to country growth, things gets more efficient, and helps the economy get bigger.
2. Poverty Reduction – The main goal and role is to make sure more and more people have access to financial services and make use as well to save money, build assets and protect themselves. Using banks and other financial services can assist people in saving and earning more money, as well as preparing for unexpected emergencies.
   • Should be able to may make more money and have a better life as the saying says “if you manage your money effectively you learn to live well”. People can use this money to go to school, obtain medical care, and do other things that will help them have a brighter future. It enables them to invest in education, healthcare, and other essential needs, contributing to long-term economic well-being.
3. Increased Financial Stability – Access to financial services in a more accessible manner facilitates, promotes, and contributes to the financial system’s stability. The ability to access secured, trusted, and regulated financial services can increase the likelihood of consumer trust that their money will be protected and that we will not have financial troubles.
   • If more individuals utilize banks and formal locations to manage their money, they will no longer have to rely on risky, unregulated channels. This makes it easy for people to save money and strengthens the economy. Thus, it reduces the vulnerability of individuals to financial crises and helps build a more resilient society and economy.
4. Financial Literacy – When authorities put their focus on facilitating financial literacy and education, it in turn leads to Financial inclusion activities frequently coexist alongside financial literacy initiatives. When consumers receive assistance and education on how to properly manage their money, they have a better understanding of financial services.
   • We attempt to educate individuals about finance through educational initiatives as we try to include more people in the financial system. People can make better financial judgments if they learn about money and have simple access to financial services. This knowledge translates into better financial management, increased savings, and more informed investment choices, which ultimately contribute to economic growth.
5. Fosters Digital Economy: Financial inclusion facilitates average consumers access to digital financial services and fosters creative technological innovations. People who live far away, especially in remote areas where traditional brick-and-mortar banks are inaccessible, are always able to use financial services without having to travel there thanks to digital applications like USSD, SMS, and mobile banking apps.
   • It also costs less than going to a regular bank. This digital transformation opens up opportunities for digital entrepreneurship, innovation, and the growth of the digital economy, contributing to economic advancement. The results are pleasing in this case, as digital transformation has huge potential to help the economy expand and become more powerful.
6. Walk towards formal Economy – More individuals having bank accounts can improve tax collection and promote formalization of the economy. It is easier to keep track of money when more people and businesses utilize genuine banks. When people pay their taxes on time, the government has more money to accomplish its job. It also makes it more difficult for people to falsify or cheat on their taxes.
   • Digital payments can help governments send money to individuals more simply, save money, and improve the efficiency of public services. Additionally, digital payment systems can streamline government payments, reduce leakages, and enhance the efficiency of public services.
7. Gender Equality – Making financial services accessible to everyone promotes gender equality and create a more just society. This helps people who don’t have a lot of power, like women, those who live far from cities, and those who don’t have everything they need, to make more money and make choices about their money.
   • This makes things more fair for everyone and gives everyone the same chances. Some people think that only women who want equal rights support this idea. But actually, if women have more power in the economy, it helps the economy grow and makes everyone’s lives better. Women in Africa have fewer rights and chances than men, but people don’t talk much about how to include them in financial plans.
   • There is a chance to make sure women are included in money policies. Those who decide things must gather information such as numbers and interviews to know about the market and its difficulties. This leads to more inclusive growth and reduces economic disparities within society.
8. Government and Public Benefits: Financial inclusion enables governments to deliver social benefits and subsidies more efficiently, reducing leakages and ensuring that resources reach the intended recipients.

In summary, financial inclusion has the potential to lift country economies by driving economic growth, reducing poverty, promoting stability, fostering innovation, improving financial literacy, boosting government revenue, and advancing social and gender equality.

Financial inclusion can help countries become better by making their economies stronger, helping people who are poor, making things more stable, promoting new and better ideas, teaching people more about money, making the government richer, and making sure boys and girls have the same opportunities. The people who run countries and banks should work together and make plans to include everyone in the economy. This will help make the economy better and fairer for everyone and create good plans.

Conclusion – The Dalai Lama once said that even very young babies can tell the difference between nice actions and mean actions, and they like to see nice things happening and don’t like to see mean things happening. They believe that people are naturally kind and caring. “This makes us feel positive.” Gender equality can only happen when both men and women have the same opportunities to control and use money and other economic resources. By doing so, we can ensure that the future of FinTech is one of responsible, inclusive, and efficient financial technology.

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Points to Note:

it’s time to figure out when to use which tech—a tricky decision that can really only be tackled with a combination of experience and the type of problem in hand. So if you think you’ve got the right answer, take a bow and collect your credits! And don’t worry if you don’t get it right.

Feedback & Further Questions

Do you have any burning questions about Big Data, “AI & ML“, Blockchain, FinTech,Theoretical PhysicsPhotography or Fujifilm(SLRs or Lenses)? Please feel free to ask your question either by leaving a comment or by sending me an email. I will do my best to quench your curiosity.

Books & Other Material referred

• AILabPage (group of self-taught engineers/learners) members’ hands-on field work is being written here.
• Referred online materiel, live conferences and books (if available)

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