Introduction to Financial Inclusion
For us to understand this concept called financial inclusion, we will have to know the meaning of the two keywords “Financial” and “Inclusion”. Financial is anything related to finance and inclusion is the addition to several groups. Financial inclusion is the ability and the act of encouragement to make financial services and other related financial products available for easy accessibility.
By the time people are financially included, there won't be any barrier between them and the finances. For example, someone that wants to buy goods from Jumia will need to have a bank account to order those goods and get them available where it is needed.
Financial inclusion is the process of having more access points where financial activities are taken place.
HOW TO KNOW WHERE PEOPLE ARE NOT FINANCIALLY INCLUSIVE
Yeah! The government can know a place that is not financially inclusive through research work. This is by you sending some number of people out to collect data for you. This data will help the government to know where those financial institutions are needed. Let's take a data of a town to have a hundred 18+ citizens and just five of the hundred are using a bank- this shows that there is a problem.
Through the survey conducted among the people, the problem will be fished out. The problem may be because of the location of the bank, it may be far. The government will now know where a bank needs to be situated as that will increase the financial strength of the country.
HOW TO CONVINCE PEOPLE YOU WANT TO INTERVIEW ON FINANCIAL INCLUSION
This is a bit challenging to you by the time the government picks you to participate in the survey program and you face issues like people trying to criticize you that - what do you need this data for? I will implore everyone to try and tell the people the importance of being financially inclusive in your nation. Say good words to them and make sure you tell the people how they will benefit from the program.
Importance of Financial Inclusion
Encourages savings: When someone is financially inclusive and knows how the bank works, where he or she has been told that the bank cannot run away. Yeah! The person will want to save after they have been promised there will be a little increase in their money at the end of the month. To apply for a loan from a bank, you must have some amount of money that you have kept with them and this will make the bank have more trust in you. This is one of the importance of financial inclusion
Enhances the financial strength of the nation: When people have access to banks in their area, they will come opportunities like loans, and bank draft to improve their business. By the time the people are told that they can obtain a loan for their business when they open an account with a bank. They want to reply to you as it will also help the nation's wealth.
Improves health: Some banks will tell you to join certain programs in the bank like health insurance. A bank can give you a loan when you or one member of your family is sick after which you have been contributing some amount of money before the health problems. Do you know that some people die when they couldn’t get medical attention early because of money? But this will prevent people from dying anyhow in the nation. Therefore, it reduces the mortality rate.
Encourages Education: Many banks have a student loan, this is the process by which students who are wanting to go to school can obtain a loan and pay monthly or after an educational career as agreed by the banks. Even, seeing educated people in their midst will want to make them go to school to study. The illiterates will want to learn how to read and write if not everything but their names.
Development of rural areas: When banks are built in rural areas, this will promote the commercial activities of the state as people from the city may withdraw and make some market sales as people will buy something from there. More companies will want to come there which may lead to an increase in the area's infrastructure.
Reduces unemployment: When new banks are built, they will need security guards, cleaners, and many more. Many people will get jobs through that and will be financially stable. In the construction of the banks, laborer jobs will be available and this reduces the unemployment rate for a while. The unemployment rate will reduce drastically and thus will reduce the crime rate of the country. Even, some people will open paga or POS shops around to achieve easy accessibility and reduces the rate of unemployed people
Reduces crime rate: When everyone has a financial service center around them, there will have no need to be carrying money from one place to another. If you want to buy something, you either do a transfer or withdraw from the nearest commercial shops. People will not be able to spend much fake money as it will be able to be spot easily. I could remember an incident in my area where a bar attendant was given fake money of almost half a million of my country's currency. This guy has been struggling to survive. This is a great importance of financial inclusion as it will reduce the mortality rate of the country as no or fewer crimes will be committed.
Easy accessibility: Can you still recall the incident of corona? Do you know how much people from rural areas really suffered? Some rural areas don’t have a financial institutions in their place and which makes it difficult for their children in the city to send money since there were no work and they don’t have banks around them. This should be the main factor of financial inclusion.
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