Financial inclusion refers to initiatives to make financial services and products available and reasonably priced to all people and businesses, regardless of their personal wealth or the size of their organization. The goal of financial inclusion is to lower the obstacles that prevent people from engaging with the financial system and utilizing its products to better their lives. Additionally known as inclusive finance.
Financial inclusion “facilitates day-to-day living, and helps families and businesses plan for everything from long-term aspirations to unanticipated emergencies,” the World Bank writes on its website. Furthermore, it continues, “As accountholders, people are more likely to use other financial services, like savings, credit, and insurance, start and grow businesses, invest in education or health, manage risk, and weather financial shocks, all of which can improve the overall quality of their lives.”