Access for All: Building Inclusive Financial Systems

This book presents diverse approaches to building inclusive financial systems that can serve all segments of the population.

Inclusive financial systems are the only way to reach large numbers of poor and low-income people. Diverse channels are needed to ensure that financial services reach excluded people. This entails breaking down the walls that currently separate microfinance from the broader world of financial systems. The book states that:

• Currently, specialized MFIs serve a relatively narrow range of clients, largely informal sector entrepreneurs, leaving out many potential clients;
• Poor people need a wide range of financial services that are convenient, flexible and reasonably priced;
• Microfinance can be a powerful instrument against poverty, and can help poor households to move from everyday survival to planning for the future;
• Microfinance is, however, not appropriate for the destitute who require grants, infrastructure improvements, training programs, and other nonfinancial services.

Financial service providers face challenges in understanding the financial requirements of those who are currently excluded and translating it into financial services that are accessible, high-quality, affordable and convenient.