The introduction of Financial Inclusion in Bangladesh has been one of the most interesting approaches by the Bangladesh Government. One of the major objectives of financial inclusion is to spread the services of financial institutions all over the country. The government wishes that every class of citizen will have access to banking services. Therefore, the spread of the activities is extremely crucial. Financial inclusion is a great step towards that.
A Brief Overview of Financial Inclusion
According to the World Bank, financial inclusion is the core idea of having access to necessary and beneficial financial offerings provided by the banking system of a country.
As a result, financial inclusion is introduced so that every business entity and citizen of a country can have access to payments, transactions, insurances, savings, credits, and loans from the public and commercial banks of the country.
Bangladesh Government introduced financial inclusion with this aim. In general, there are several more objectives of financial inclusion as well.
5 Key Objectives of Financial Inclusion
Financial inclusion can be extremely beneficial for a country. The banking system of a country drives income and overall growth. Therefore, financial inclusion can spread the horizon of players in the banking system. Just like this, there are several more objectives of the concept at hand.
Increase in growth
One of the key features of financial inclusion is that it can reduce the income equality of a country. As a result, the country can experience continued economic growth. Ultimately, this is what every country works towards.
Financial inclusion is a key step towards a continuous increase in economic growth. Moreover, the growth rate is highly influenced by the enhancement of digital platforms, entrepreneurial activities, and banking sector expansion. Financial inclusion is a great way to do all these together.
Closing the gap
Another primary objective of financial inclusion is to close the gap between the privileged and the deprived. More often than not, it is the affluent class of society who gets easy and constant access to the banks.
Financial inclusion is aimed to close this gap of lack of information. The government expects that the lower class of the society and rural people will now have proper knowledge about the banking system of the country. In addition, they will have the knowledge of how to utilize the banking services for their own purposes.
Expansion of services
Financial inclusion aims to expand the banking system towards rural areas. Moreover, the expansion is expected to reach native areas that require development. For Bangladesh, the expansion of the banking system is a great leap forward to the “Digital Bangladesh” project of the Bangladesh government.
Financial inclusion is one of the most appropriate approaches to increase the reach of banking services. Therefore, this is a key objective for any country in introducing financial inclusion.
Digitalization of banking services
Another crucial objective of financial inclusion is to complete the “Digital Bangladesh” project of the current central government. As mentioned earlier, the project has been one of the most significant strategies of economic development. Financial inclusion can help in reaching the deprived class of people. As a result, the inclusion of newer technologies can help to enhance digitalization.
Enhancement of cybersecurity
Although cybercrime has been one of the major challenges of financial inclusion, it is another step towards the removal of such crimes. The challenge can be overcome if stronger and better digitalization is included in the banking system of the country. Financial inclusion is a crucial way to do that.
The benefits of financial inclusion are extreme as it can shape a country’s development process. This is a huge step for Bangladesh in the “Digital Bangladesh” project. However, there are several challenges that the country must overcome for a smooth process. Proper implementation of the law, ideas, and modern technologies are extremely important for the successful outcome of financial inclusion.