Financial Inclusion and Its Relationship in Inclusive Economic Growth

Abstract

The purpose of this study is to discuss the relationship between financial inclusion and inclusive economic growth. Financial inclusion is the ability to gain access to relevant and affordable financial products and services applicable to their needs in transactions, payments, savings, credit, and insurance, delivered ethically and sustainably. Financial inclusion and economic growth are becoming increasingly important to national development. I will use the phenomenon of rapidly expanding financial inclusion in Asia without increasing economic growth or reducing income inequality for this study. Moreover, the impact of financial inclusion on economic development, poverty, income inequality, and financial stability is inconsistent, and there is a lack of comprehensive research. Economic development can be significantly increased through digital financial inclusion, while income disparities can be reduced and poverty can be significantly reduced based on empirical findings. The Global Index Database estimates that 50% of the adult population lacks access to formal financial services.