ANALYZING THE ROLE OF VARIOUS POLICY INITIATIVES IN ENHANCING FINANCIAL INCLUSION IN GHANA

Abstract

The concept of financial inclusion has caught the attention of global multilateral institutions such as the World Bank, and International Monetary Fund, as well as other developmental partners across the globe. The key highlights of financial inclusion are to provide unimpeded access to quality finance at a relatively cheaper cost by way of creating opportunities for access and usage of formal financial services among vulnerable groups such as the aged, women, immigrants, and People with Disability (PWD). Despite the introduction of sound policies to attract these segments of society, the majority of people still have difficulties accessing formal finance. This paper analyzed two critical policy initiatives adopted by the government of Ghana to achieve a proposed 85% increment in the number of adults with formal accounts by the end of 2023. We found out that despite improved account penetration levels driven by the mobile money platforms and Rural Banks, a significant level of Ghanaian society continues to struggle to access credit due to the limited availability of collaterals. While gender, education, geographical location, and absence of proper ID/address were crucial barriers that could inhibit people from getting included in the financial system in Ghana.