Financial inclusion means that adults have access to and can use a range of appropriate financial services. At its most basic level, formal financial inclusion starts with having a deposit or transaction account at a bank or other financial institution or through a mobile money service provider. The account can be used to make and receive payments and to store or save money. Financial inclusion also involves access to appropriate credit from formal financial institutions, as well as the use of insurance products that allow people to better manage financial risks such as crop damage.
Empirical evidence shows that financial inclusion allows people to make many everyday financial transactions more efficiently and safely. Use of the formal financial system also expands their investment and financial risk-management options. This is especially relevant for people living in the poorest households. For example, digitizing social transfer payments in Niger significantly reduced travel and wait times for recipients receiving the funds. It also lowered the government’s administrative costs. In Malawi, access to accounts increased savings among farmers. That translated into greater agricultural output and household spending.
Transaction costs drop, hence the wedge in tradebook uncertainty assumed zero. Uniform access implies fair look at the trade book, and with hedges gone, investment decisions much simpler.
Even the Kanosians are beginning to like the secure element concept.
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