Concluding remarks and implications for future research

We present some concluding remarks on the main aspects of inclusive financial development covered in the book, by summarising the research findings, policy implications and direction for future research. We deliver six key messages. First, we emphasize the role of financial regulation in financial inclusion, to entrench trust and confidence in financial institutions, ensure systemic stability and consumer protection. Second, we endorse the strong empirical evidence, which shows that financial inclusion has been greatly improved by the adoption of digital finance, especially in Africa where the financial access gap has been very wide; appropriate policy and interventions are urgently required to scale up interoperability of retail electronic payments platforms and provision of electronic-ID system. Third, there is robust evidence that financial inclusion promotes economic growth, notably more in agriculture and services than other sectors of the economy; this solid evidence is timely for government intervention in the two sectors where households and companies are most active and where participation opportunities are greater for and women entrepreneurs and start-ups by the youth. Fourth, the rise of the pan-African cross-border banking revolution has improved competition within the banking sector, which in turn has increased access to bank loans for households and businesses. Fifth, mobile money - the most elementary form of FinTech which started in Africa and is diffusing rapidly worldwide - has become part of the financial system in several African countries and has disrupted the well-entrenched digital divide between the North and the South. Sixth and finally, there are still several challenges to achieving inclusive financial development including infrastructure, internet security, and lack of incentive compatibility between government actors and private sector agents; we highlight future research to address these challenges and generate new evidence to guide new policies and practices to enhance inclusive financial development and growth.