Who loses in financial inclusion?

Ozili, Peterson K (2023): Who loses in financial inclusion?

Abstract

Financial inclusion involves the provision of basic formal financial services to members of society. Policy efforts and collaboration with the private sector have helped to increase the level of financial inclusion in many countries. Such efforts give rise to net winners and net losers from financial inclusion efforts. This paper identifies the net losers from financial inclusion efforts. The lesson we learn from the net losers identified in this study is that being ‘banked’ is only a necessary condition to enjoy the benefits of financial inclusion. Being ‘banked’ is not a sufficient condition to enjoy the benefits of financial inclusion. We learn that a banked adult can be a net loser from financial inclusion despite being banked. This has wider implications for understanding the challenges to sustained financial inclusion.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial inclusion; banked adults; losers; access to finance
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I38 - Government Policy ; Provision and Effects of Welfare Programs

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