Who Loses in Financial Inclusion?

Abstract

Financial inclusion involves the provision of basic formal financial services to members of society. Policy efforts and collaboration with the private sector have helped to increase the level of financial inclusion in many countries. Such efforts give rise to net winners and net losers from financial inclusion efforts. This chapter identifies the net losers from financial inclusion efforts. The lesson from the net losers identified in this study is that being ‘banked' is only a necessary condition to enjoy the benefits of financial inclusion. Being ‘banked' is not a sufficient condition to enjoy the benefits of financial inclusion. A banked adult can be a net loser from financial inclusion despite being banked. This has wider implications for understanding the challenges to sustained financial inclusion.