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 a number of group. Financial inclusion is the ability and the act of encouragement to make financial services and other related financial product available for easy accessibility.
By the time people are financially included, there wont be any barrier between them and the financial. 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 to where it is needed.
Financial inclusion is the process of having more access point where financial activities is taken place.
HOW TO KNOW WHERE AND PEOPLE NOT FINANCIALLY INCLUSIVE
Yeah! The government can know a place where 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 institution are needed. Lets take a data of a town to have a hundred 18+ citizens and just five of the hundred are using bank- this shows that there is problem. Through the survey conducted among the people, the problem will be fished out. The problem may be because of the location of 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 WANTS TO INTERVIEW ON FINANCIAL INCLUSION
This a bit challenging to you by the time the government picks you to participate in the survey program and you face issue like the 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 been financially inclusive in your nation. Say good words to them and make sure you tell the people how they will be benefit from the program.
Importance of Financial Inclusion
1. Encourages savings : When some is financially inclusive and know how the banks 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 your money at the end of the month. To apply a loan from a bank, you must have some amount of money which 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
2. Enhances the financial strength of nation: When the people have an access to bank in their area, they will some opportunities like loan, bank draft to improve their business. By the time the people are told that, they can obtain loan for their business when they open an account with a bank. They want to reply you as it will also helps the nations wealth.
3. Improves health : Some banks will tell you to join some certain program in the bank like health insurance. A bank can give you 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 dies when they couldn’t get a medical attention early because of money. But this will prevent people from dying any how in the nation. Therefore, it reduces mortality rate.
4. Encourages Education : Many banks has student loan, this is the process by which student who are wanting to go to school can obtain loan and pay monthly or after educational career as agreed by the banks. Even, by seeing educated people in their midst, this 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.
5. Development of rural area : When banks are built in rural area, this will promote the commercial activities of the state as people from city may withdraw and make them some market sales as people will buy something from there. More companies will want to come there which may lead to the increase in the area infrastructure.
6. Reduces unemployment : When new banks are built, they will need security guards, cleaner 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 the people that are unemployed
7. Reduces crime rate : When everyone has 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 transfer or withdraw from 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 million of my country currency. This guy has been struggling to survive. This is a great importance of financial inclusion as it will reduce mortality rate of the country as no or less crime will be committed.
8. Easy accessibility: Can you still recall the incident of corona? Do you know how much people from the rural area really suffered? Some rural areas doesn’t have financial institution in their place and which makes it difficult for their children in the city to send the 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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