What is Financial Inclusion?

Financial inclusion is the provision of a full range of affordable financial services to economically active people. It is specially important for those who have been underserved or excluded from the formal financial sector. The concept includes access to credit, savings, insurance, payments, remittances, and other financial services.

There has been an over-emphasis on credit, but it is equally important to focus on financial literacy education and on developing a culture of saving and planning for the future, all properly supported by tools and infrastructures that people can trust.

Currently it has been estimated that more then 2.5 billion people and enterprises lack access to formal or semi-formal financial services around the world. Microfinance institutions have played a critical role in reaching out to millions of under-served people in low-income markets, bringing them into the system by providing needed services at affordable costs and helping them
become active participants in the market economy.