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Financial inclusion as a tool for sustainable development

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  • Marian Catalin VOICA

    (Cybernetics, Economic Informatics, Finance and Accounting Department, Faculty of Economic Sciences, Petroleum-Gas University of Ploiesti, Ploiesti, Romania)

Abstract

Financial inclusion is one of the recent tools used by financial entities in order to provide suitable education for potential clients from groups of society that have a low level of education, in general, and almost no financial , in particular. Financial inclusion actions aim at explaining to lower educated groups of people and the mechanisms of the financial instruments that they can access in order to improve their day-to-day life. These programs are targeted towards people that are exposed to the risk of poverty and social exclusion. According to Universal Financial Access 2020, around 2 billion people from the global workforce do not use any form of financial services. As a result, the World Bank and the International Finance Corporation set the target to include 400 million adults in transactions by providing technical and financial support in the case of the World Bank and help 600 million adults to be included in investments and advisory services in the case of the International Financial Corporation. The highest impact of financial inclusion programs will be made in emerging countries with low economic literacy. As sustainable development became the highlight of nowadays agenda, financial inclusion may be viewed as an important tool to promote sustainable development in least developed countries and developing ones. As financial inclusion became a target for regulators and global development agencies, many countries around the world made commitments and some were developing national strategies to promote it. The development of financial inclusion may take on many forms, so the field is open to financial and non-financial institutions, which can innovate and explore new forms of financial services, like the case of microfinance that became very used in many developing and developed countries as a tool to lift people from poverty. Alongside with this free development space there needs to be a body to ensure consumer protection and responsible practices. Classification JEL:-G34, I22

Suggested Citation

  • Marian Catalin VOICA, 2017. "Financial inclusion as a tool for sustainable development," Romanian Journal of Economics, Institute of National Economy, vol. 44(1(53)), pages 121-129, June.
    • Handle: RePEc:ine:journl:v:44:y:2017:i:53:p:121-129
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    Cited by:

    1. Claude Bernard Lontchi & Baochen Yang & Yunpeng Su, 2022. "The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    2. Mirela PANAIT & Irina RADULESCU & Catalin VOICA, 2018. "Financial Inclusion and Vulnerabilities Generated by the International Crisis," Romanian Journal of Economics, Institute of National Economy, vol. 47(2(56)), pages 71-81, Decembre.
    3. damane, moeti & Ho, Sin-Yu, 2023. "An exploratory study of financial inclusion in sub-saharan Africa," MPRA Paper 120239, University Library of Munich, Germany.
    4. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    5. Valentina Vasile & Mirela Panait & Simona-Andreea Apostu, 2021. "Financial Inclusion Paradigm Shift in the Postpandemic Period. Digital-Divide and Gender Gap," IJERPH, MDPI, vol. 18(20), pages 1-28, October.
    6. Favourate Y. Mpofu, 2022. "Industry 4.0 in Financial Services: Mobile Money Taxes, Revenue Mobilisation, Financial Inclusion, and the Realisation of Sustainable Development Goals (SDGs) in Africa," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    7. K. K. Abdulkareem*, Hauwah, 2023. "Financial Inclusion And Poverty Reduction Among The Operators In The Small And Medium Scale Enterprises Of Lagos State," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 15-31, June.
    8. Mirela Panait & Irina Radulescu & Alina Brezoi, 2020. "Financial Markets – Under the Sign of CSR. Some Evidences Regarding Financial Education," Book chapters-LUMEN Proceedings, in: Adriana Grigorescu & Valentin Radu (ed.), 1st International Conference Global Ethics - Key of Sustainability (GEKoS), edition 1, volume 11, chapter 11, pages 96-106, Editura Lumen.

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    More about this item

    Keywords

    financial inclusion; sustainable development; micro-finance; UFA 2020;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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