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Is financial inclusion possible when there is poor economic development?

Is financial inclusion possible when there is poor economic development?

In developed countries we tend to see that when people become richer, they then demand more financial services and hence become financially included so far as access to financial products are concerned. The financial system has also grown on this demand. However, in developing countries, we often think of financial inclusion as a tool for development, a tool that can get poor people out of poverty. But is this possible without the growth in the general economy? Should we not be focusing on growing the economy first and then when people are richer, they will become financially included?

In my opinion the concept financial inclusion could have been coined by various donor agencies attempting to find practicable ways to improve transparency in the disbursement of funds to the vulnerable. Businesses therefore adopted this and have been trying to build the solution from a bottom - up approach hence the difficulty in attaining a perfect financial included system. If the reverse happens, it is likely we can attain full financial inclusion with ease as it would be an up - down diffusion as the rich could become agents of financial inclusion. A review of literature on mpesa suggest is success was largely driven and influenced by the middle class in the capital and major towns having phones, money and needed a channel to ship funds to folks in the rural community. Safaricom seeing the gap developed a solution to meet the need.