The Issues Of Financial Inclusion And Its Role In Economic Development

The use of basic financial services, such as bank accounts, loans or savings, has become a necessary condition for participation in economic and social life. However, parts of the global population and firms remain excluded from the financial sector for various reasons. This paper aims to analyse the main issues of financial inclusion globally and its role in economic development. To achieve this goal, the economic and social benefits of financial inclusion are identified, as highlighted by the existing literature; further, the main factors that determine the exclusion of the population and firms from the financial system are revealed; and finally, the global trends in the evolution of the financial inclusion indicators are presented. Notwithstanding the role of financial inclusion in achieving important economic goals, our analysis highlights the existence of significant disparities internationally in the level of financial inclusion, as well as the need to address them through public policy actions.