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Who loses in financial inclusion?

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  • Ozili, Peterson K

Abstract

Financial inclusion involves the provision of basic formal financial services to members of society. Policy efforts and collaboration with the private sector have helped to increase the level of financial inclusion in many countries. Such efforts give rise to net winners and net losers from financial inclusion efforts. This paper identifies the net losers from financial inclusion efforts. The lesson we learn from the net losers identified in this study is that being ‘banked’ is only a necessary condition to enjoy the benefits of financial inclusion. Being ‘banked’ is not a sufficient condition to enjoy the benefits of financial inclusion. We learn that a banked adult can be a net loser from financial inclusion despite being banked. This has wider implications for understanding the challenges to sustained financial inclusion.

Suggested Citation

  • Ozili, Peterson K, 2023. "Who loses in financial inclusion?," MPRA Paper 116406, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116406
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    File URL: https://mpra.ub.uni-muenchen.de/116406/1/MPRA_paper_116406.pdf
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    References listed on IDEAS

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    1. Ahmad Hassan Ahmad & Christopher Green & Fei Jiang, 2020. "Mobile Money, Financial Inclusion And Development: A Review With Reference To African Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 753-792, September.
    2. Zibei Chen & Minchao Jin, 2017. "Financial Inclusion in China: Use of Credit," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 528-540, December.
    3. Thorsten Beck & Lemma Senbet & Witness Simbanegavi, 2015. "Financial Inclusion and Innovation in Africa: An Overview," Journal of African Economies, Centre for the Study of African Economies, vol. 24(suppl_1), pages 3-11.
    4. Marty Chen, 2005. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," WIDER Working Paper Series RP2005-10, World Institute for Development Economic Research (UNU-WIDER).
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    More about this item

    Keywords

    financial inclusion; banked adults; losers; access to finance;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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