What is financial inclusion?

Abstract

This chapter provides an overview of financial inclusion, which refers broadly to the access that people or groups have to the financial system. A literature has emerged that is very critical of financial inclusion and sees this as part of the 'financialisation of everyday life'. The chapter claims that the split between the critical and supportive literatures impoverishes research on financial inclusion. The supportive literature does not usually discuss theoretical controversies over financial inclusion and instead confines itself to the details of policy. The lack of engagement with theoretical controversies means that the supportive literature does not unpick whether there are specific strands of financial inclusion policy that ought to be developed further and whether there are other types of policy that ought to be challenged more clearly. Meanwhile, the critical literature provides a blunt treatment of financial inclusion policy. It does not engage with the discussion of policy choices within the supportive literature and so does not consider that it is possible to design financial inclusion in different ways. The chapter then argues that it would be much better for research for the different literatures to cross-breed. This cross-fertilisation of ideas can occur across all of the areas of financial inclusion and so can cover banking, savings, insurance, and guidance or advice.