The Role of Financial Inclusion in Low-Income Countries' Economic Growth

Abstract

Promoting economic growth through financial inclusion is particularly crucial in low-income nations, where banking services are often inaccessible to the general population. investigating the link between developing-world financial inclusion and economic growth; specifically, looking at how banking, credit, and insurance may empower individuals, inspire entrepreneurship, and increase productivity. Case studies from different low-income nations have shown that regulatory impediments, inadequate infrastructure, and a lack of financial literacy are some of the obstacles to financial inclusion. More stable economies, improved household welfare, and smaller businesses' access to capital are all results of greater financial inclusion. the role of advancements in financial technology, mobile banking, and digital financial services in dismantling traditional obstacles and expanding access to banking and other financial services for low-income individuals. The findings suggest that enhanced financial inclusion can help low-income economies by boosting economic engagement, lowering poverty rates, and enhancing resilience. Lastly, the research proposes a collaborative approach among governments, banks, and NGOs to strengthen financial inclusion programs and promote inclusive economic growth.