Financial Inclusion: Reaching the Unbanked

This report looks into why despite rapid economic growth in emerging markets over the past decade, access to and use of financial services in these markets still lag behind the developed world. It also assesses the importance of financial access for individuals and small firms and identifies barriers to inclusion that still need to be overcome. The report covers the following sections in detail:

• Current status of financial inclusion in emerging markets with a focus on the definition of financial inclusion, how 30 emerging countries fare on 12 indicators of financial inclusion, and why some countries are more inclusive than others;
• Microfinance in Bangladesh as a suitable model for microfinancial innovation and mobile money usage in Kenya as an example of an efficient technological innovation;
• Importance of financial inclusion with a focus on both micro and macro level benefits, impact on reducing inequality, and the need for better regulation;
• Analysis of the progress in financial inclusion in emerging markets;
• Five barriers to financial inclusion and recommendations to overcoming each barrier.