The global evidence on the impact of financial inclusion consistently shows that poor people use financial services to help them achieve two outcomes that improve their well-being: building resilience and capturing opportunities.
Today, the global development community generally accepts that poverty is more than just a lack of income. What do multidimensional concepts of poverty mean for those who see poverty reduction as the ultimate goal of financial inclusion?
Financial health has emerged as a useful framework for talking about whether financial services improve poor people's ability to manage their financial lives. But how can we understand whether better financial management improves people's well-being?
Digital credit is a testament to the ways in which technology and new business models can assist in the expansion of financial services to low-income households. But it also points to potential hazards of letting a market develop unchecked.
A growing body of evidence is emerging on financial inclusion. The lack of a cohesive, nuanced story to bring the evidence together is leading to wildly different and overly simplistic interpretations.
Financial inclusion in Pakistan has improved slowly but steadily since 2008 according to most sources. However, depending on the source of data, the topline financial inclusion figure for Pakistan varies from 7% to 23%. Why?
A more nuanced picture is emerging that supports broad financial inclusion efforts. Mounting evidence shows that on the whole, access to formal financial services helps poor families in developing countries improve their lives.