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Financial inclusion for development
Financial inclusion provides access to formal financial services for disadvantaged groups and small businesses, promoting economic development. Globally, half of all adults lack bank accounts, including 80% of those living on under $2 per day. Without access to financing, small businesses and families must rely on informal mechanisms, hindering investment, employment, and growth. Financial inclusion can be expanded through initiatives like microfinance, mobile banking, and financial education, enabling people to invest, manage cash flow, and build resilience, lifting incomes and reducing poverty. Governments and organizations should promote financial inclusion programs that can generate employment and entrepreneurship.
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Financial inclusion for development
- 1. Financial Inclusion forDevelopment Prepared by Mohammad Omar Faruk BBA & MBA (Finance) Dhaka, Bangladesh Development Finance Impact Project – Digital Artifact
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- 3. Financial Inclusion Scenario Globally, 1in 2adults does not have a formal bank account. About 80%of the poor living under $2/day have no bank accounts
- 6. Access to financewill enable the best use of resources. More people with the financial system= more investment, employment and development
- 7. In developing economies, ofsmall firms believes access to finance as a major obstacle to their operations. Without access to formal financial services, poor families must rely on informal mechanisms.
- 8. •Is this thereason for Financial Inclusion has positive impact on economic Indicator:
- 9. Main obstacles ofFinancial Inclusion • barriers such as cost, travel distance, and documentation requirements • The poor, women, youth, and rural residents tend to face greater barriers to access. • Among firms, the younger and smaller ones are confronted by more binding constraints. • The use of financial services is constrained by regulatory impediments prevent people from accessing beneficial financial services
- 11. Financial inclusion isan enabler and accelerator of economic growth, job creation and development. Affordable access to, and use of, financial services helps families and small enterprise owners generate income, manage irregular cash flow, invest in opportunities, strengthen resilience to shocks, and work their way out of poverty.
- 12. Financial Inclusion canbe expanded through: • Easy access to Finance • More bank branch and ATM • Introduction of Internet Banking • Micro-Finance Program • Financial Services of NGOs • Micro-Insurance Services • Easy process of Account opening in Bank • Less costly bank account • Mobile Banking • Video Banking • Bank on Van • Financial Education
- 13. The government, officialaid provider or private sector MUST participate in Financial Inclusion Program Because: • Financial Inclusion is the pre-requisite for Economic Development • Financially included people can be self depended. • Financial Inclusion can generate employment. • Access to finance is associated with innovation, job creation, and growth • More investment > Higher production & GDP • Financial aid can help people to be entrepreneurs. • Financial access improves local economic activity. • Financial Inclusion offers the potential for increasing banking business