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Vulnerable Group Theory of Financial Inclusion

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  • Ozili, Peterson K

Abstract

In this article, I propose the vulnerable group theory of financial inclusion. The theory begins with the premise that vulnerable people are often left behind in society, they suffer the most from economic hardship and crises, and they are at risk of being excluded from the formal financial sector. The theory therefore proposes that financial inclusion efforts should be targeted at all vulnerable people and groups in society. Bringing vulnerable people into the formal financial sector will give them access to available formal financial services, which they can use to earn income and acquire assets that they can use to take themselves out of the vulnerability bracket. The study also identifies the vulnerable groups in need of financial inclusion and proposes a vulnerability grid. Several avenues to expand the theory are suggested.

Suggested Citation

  • Ozili, Peterson K, 2024. "Vulnerable Group Theory of Financial Inclusion," MPRA Paper 123291, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123291
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    References listed on IDEAS

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    1. Terri Friedline & Mary Rauktis, 2014. "Young People Are the Front Lines of Financial Inclusion: A Review of 45 Years of Research," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(3), pages 535-602, October.
    2. Gerhard Kling & Vanesa Pesqué-Cela & Lihui Tian & Deming Luo, 2022. "A theory of financial inclusion and income inequality," The European Journal of Finance, Taylor & Francis Journals, vol. 28(1), pages 137-157, January.
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    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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