One of the most important aspects of a functioning economy is the ability for people to participate in it.
Financial inclusion is when everyone has access to basic financial products and services that allow them to save, borrow, and pay for goods and services.
In this blog post, we will discuss some strategies that can be used to promote financial inclusion in your community and around the world!
What is Financial Inclusion?
Financial inclusion is the process of providing financial products and services to people who do not have access to them. This includes things like bank accounts, credit, loans, and insurance.
Financial inclusion is important because it allows people to participate in the economy, helps them protect their money, and can lift them out of poverty.
There are many reasons why people do not have access to financial products and services. Some of these include lack of financial literacy; lack of awareness regarding banking services; lack of proper identity cards to open bank accounts; lack of physical access to banks for people in rural areas; and lack of trust in financial institutions.
Why Promote Financial Inclusion?
Financial inclusion must be promoted in order to achieve sustainable development.
The United Nations’ Sustainable Development Goal (SDG) number ten is “to reduce inequality within and among countries” and one of the targets under this goal is to “increase access to financial services, including banking, insurance, and microfinance.”
Promoting financial inclusion can also help to reduce poverty, enhance economic growth and increase resilience of people.
How Can You Promote Financial Inclusion?
There are many ways that you can promote financial inclusion in your community or around the world. Here are some ideas:
Advocate for Policy Change
Advocate for policy change at the local, national or international level to create an enabling environment for financial inclusion.
Policy changes could include changing ID requirements so that people can access bank accounts, or increasing access to banking infrastructure in rural areas.
Improve Financial Literacy
Improve financial literacy by providing training and education on financial products and services. This could be done through workshops, online courses, or partnering with local banks or credit unions.
Teach people about the 5 essential components of financial inclusion:
By understanding these components, people will be able to make informed decisions about the financial products and services that are right for them.
Raise awareness about financial inclusion and the products and services that are available. This could be done through community events, social media campaigns, or working with local schools and universities.
Try to build trust by sharing stories of people who have benefited from financial inclusion.
Promoting Financial Inclusion As A Business
Promoting financial inclusion can help people to become more financially included, and also benefit your business.
As a business owner, you can also promote financial inclusion by:
Offer Financial Products & Services
Develop products and services that meet the needs of people who are not being served by traditional financial institutions. This could include things like mobile banking, microloans, or digital payments.
By increasing access to financial products and services, you can help to empower people and reduce inequality.
Provide Financial Literacy Training
Educate your employees and customers on financial literacy. This can help people to make better decisions about their money, and understand the products and services that are available to them.
Make sure your employees get enough skills to train other people during community activities.
Engage in Community Activities
Get involved in community activities that promote financial inclusion. This could include partnering with local organisations to offer financial literacy training, or volunteering at events that help people access banking services.
You can collaborate with other businesses, NGOs, or government agencies to promote financial inclusion initiatives in your community.
Hire Diverse Candidates
Support financial inclusion by hiring a diverse range of employees. This includes people from underserved communities, women, youth, and people with disabilities. By hiring a diverse workforce, you can help to break down barriers and increase access to opportunities.
No matter what you do, remember that even small actions can have a big impact when it comes to promoting financial inclusion!