Mmegi

Financial inclusion as a critical cog for development (Part 2)

Sharing knowledge: Mambure
Sharing knowledge: Mambure

In the first part of this four-part series, we covered the basics of financial inclusion. Definitions and components of the subject matter were clearly articulated. It was noted that the key components of financial inclusion are access, usage, and quality. We also argued that affordability of financial solutions is part of the access component hence it could not be treated separately. The article was concluded by providing four lenses through which financial inclusion could be looked at notably as concept, policy, practice, and strategy. In this article we will delve into the key drivers of financial inclusion.

It is generally acceptable by authorities and scholars that financial literacy, financial innovation, consumer protection and the architecture of the financial system are the among the key levers that drive financial inclusion. These four drivers are briefly discussed in this instalment.

It is important that we understand the meaning of the term financial literacy. The Organisation for Economic Co-operation and Development (OECD) defines financial literacy as “a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”. It is clear that financial literacy goes beyond understanding the financial terms but rather deals with attitudes and how to behave in a financially responsible manner as well.

Editor's Comment
Depression is real; let's take care of our mental health

It is not uncommon in this part of the world for parents to actually punish their children when they show signs of depression associating it with issues of indiscipline, and as a result, the poor child will be lashed or given some kind of punishment. We have had many suicide cases in the country and sadly some of the cases included children and young adults. We need to start looking into issues of mental health with the seriousness it...

Have a Story? Send Us a tip
arrow up