Beyond financial inclusion: understanding the global risks and consequences of formal account inactivity

Ozili, Peterson K (2026): Beyond financial inclusion: understanding the global risks and consequences of formal account inactivity. Forthcoming in: Journal of Knowledge, Risk, and Sustainable Management

Abstract

This article explores financial inclusion and the increase in formal account inactivity. It examines the formal account inactivity problem, how it delays the benefits of financial inclusion, the risks posed by formal account inactivity and solutions to reduce formal account inactivity. It was argued that countries with a high level of financial inclusion, in terms of formal account ownership, will reap the benefits that accompany financial inclusion which includes poverty reduction, stimulating entrepreneurship, increased financial security, reduced economic inequality, improved wellbeing and increased economic growth. However, these benefits may not be realized if there is an increasing number of inactive formal accounts.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial inclusion, inactive formal accounts, account inactivity, digital financial inclusion, mobile money account, bank account, risk, dormant account
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors

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