Financial Inclusion: Approaches and Principles

This paper summarizes Mercy Corp’s approach to financial inclusion. This approach is evidence-based and it adheres to market developmental principles. The paper highlights the role the organization plays and also the roles of various government and private sector stakeholders in the process of financial inclusion. It also discusses the importance of credit in the life of the poor and the need for promoting savings. It further lists eight key principles of financial inclusion and discusses key strategies to increase the extent of financial inclusion, which are:

• Use of smart subsidies and financing;
• Introduction of appropriate products and services;
• Increasing client-level financial capability;
• Integration of technology and digital finance;
• Strengthening institutions and regulations;
• Use of appropriate financing mechanisms;
• Dependence of research and reiterative analysis.