FINANCIAL INCLUSION, TYPE, IMPORTANCE AND EFFECT ON ECONOMY

The book entitled Financial Inclusion, Type , Importance and Effect on Economy is a must read.It came into existence as a result of research conducted by the author in this area. Data were sourced from World Bank database, International Development Research blog and some scholarly works by individuals and we have referenced all the  these sources of data accordingly. Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size(Grant and Anderson,2023).Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their lives. It is also called inclusive finance. McKinsey(2023) posits that financial inclusion is when everyone can access financial services that can help them build wealth, including savings, credit, loans, equity, and insurance. World Bank(2022) posits that financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way. We further dwelt on how financial inclusion works. As the World Bank notes on its website, financial inclusion "facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies." What is more, it adds, "As accountholders, people are more likely to use other financial services, such as savings, credit, and insurance, start and expand businesses, invest in education or health, manage risk, and weather financial shocks, all of which can improve the overall quality of their lives. Some of the issues discussed here are areas of financial inclusion, financial education and literacy, affordable and accessible banking services , gender disparities, inclusive credit scoring , consumer protection, importance of financial inclusion etc. There are very broad and general reasons why financial inclusion is important. Some of the key reasons include: Financial inclusion reduces poverty and inequality. Financial inclusion provides opportunities for marginalized and low-income individuals to access formal financial services, such as savings, credit, and insurance. By empowering them with the tools to manage their finances and invest in income-generating activities, financial inclusion can help lift people out of poverty and reduce economic disparities.etc. We further examined the Role that Financial Institutions play in closing the US Racial Wealth Gap.

According to McKinsey(2023) , the racial gap in the United States has persisted for decades. The median Black family has about 13 percent of the wealth of the median White family, and nearly half of Black households are under banked. Black Americans are also more likely to be served subprime financial products, such as loans with higher interest rates that increase over time, which can be harder to pay off than regular loans.We also discussed Effects of Financial Inclusion on Economy. Financial inclusion contributes to economic growth by stimulating entrepreneurship, increasing savings, and expanding investment opportunities. It boosts consumer spending and business development, leading to job creation and improved productivity. A financially inclusive economy also attracts more foreign investment and helps achieve sustainable development goals.Other issues we dwelt on are world bank financial inclusion support framework(FISF), Financial Inclusion and Economic Growth In Sub-Saharan Africa –Case Study, Financial Inclusion, Governance and Economic Progress in Nigeria- A Case Study amongst others,