Importance of Financial Inclusion
Financial inclusion refers to chasing the objective of making financial services affordably accessible to every business and individual, regardless of size or net worth. It aims to address and offer solutions to every limitation that excludes many people from entering the financial sector. Financial inclusion is associated with the social and economic development of a country and plays a big role in reducing poverty which makes it important to the economy of a country as well as the people.
Daily transactions
At present, the poor population of the world live and work in the informal economy. The poor do not have much cash but still manage everyday expenses. However, they have to depend on informal ways of financial management due to the lack of access to a line of credit, insurance, debit card, savings account and banks. These ways include depending on friends and family, moneylenders, pawn-brokers or cash-on-hand. However, these sources are often times unpredictable, costly, risky and insufficient. Including these underserved populations in the formal financial system will make daily transactions easier for them.
Protecting savings
With financial inclusion, it is also possible to protect savings that can allow households to manage spikes in cash flow, build working capital and make consumption smoother. Financial inclusion aims to make sure that every home and business has access to suitable financial services needed for improving personal and social welfare.
Better financial management
Financial inclusion can help the underserved populations plan for recurring expenses and pay for them well on time. They can manage expenses associated with unanticipated events like natural disasters, theft, robberies, the death of a family member, and medical emergencies.
Growth of assets
Financial inclusion can fund microenterprises or small businesses, assisting owners in investing in various assets and ensuring business growth. People, even from the poorest sections of the society, can improve their overall financial welfare. Financial inclusion can lead to the economic and social progress of a nation, as it is linked to employment and growth.
The CrowdForce team, having seen the need for financial services in Emerging Markets, decided to embark on a journey to further bridge the gap between financial institutions and the underserved population. Through the CrowdForce ICO, our goal is to raise funds to develop a platform that would facilitate financial inclusion across Emerging Markets with the help of our field agent network.
