Financial Inclusion for Economic and Human Prosperity.pptx

Financial Inclusion for Economic and Human Prosperity.pptx

1. Financial Inclusion for Economic and Human Prosperity.   This section discusses the importance of financial inclusion for both economic and human prosperity. Financial inclusion had a strong positive connection with both human and economic development, according to numerous research studies. A summary of important existing empirical research work that established the substantial effect of financial inclusion on economic and human prosperity has been discussed below.

2. Khan (2012) studied the multiplier implications of financial inclusion. First, it brings a greater inclusive financial system in the country that leads to the participation of all economic agents in the formal economy. Second, it enables savings from the BoP to participate in the financial system, hence facilitating the expansion of credit and investments for the underprivileged. Last, ensuring accessibility and availability to financial services for the vulnerable improves living standards, creation of financial assets, and assures from financial shocks. Further, he believed that financial services are the public good that must be available for all agents of the economy.

3. Kling et al. (2022) stated in their research paper that financial inclusion expands financial services accessibility and minimizes income inequalities by promoting education and entrepreneurship for the poor. Their empirical results endorsed financial inclusion minimizes income inequality in society and enhances human capital development through investing money to impart education and skills that result in making wise and viable investment entrepreneur activities.

4. Ajefu et al. (2020) studied the impact of financial inclusion on mental health in Nigeria. The results observed that financial inclusion improves financial services accessibility and usages like deposit accounts, loan facilities, and insurance products. The enhanced access and use of financial services reduce mental health issues and improve physical and mental health. This study asserts that using financial services significantly improves the overall well-being of human livelihood.

5. Le et al. (2019) studied how financial inclusion affected financial sustainability and efficiency in the context of Asian countries. They observed that while financial efficiency was negatively impacted by financial inclusion, financial sustainability was positively impacted in Asia. They claimed that one of the main forces boosting economic growth was financial inclusion. Further, they suggested that a high level of low-income participation built an increase in transactions and social costs due to a lack of credit history causing financial inefficiency.