Financial inclusion role in the times of COVID-19 pandemics

Abstract

Governments, development institutions, and economists are promoting a broad agenda of inclusion in economic and social life, including universal access to education, health care, social security, clean water, and sanitation. Financial inclusion has come to be seen as an important part of this agenda. This reflects the view that individuals, households, and firms cannot take full advantage of available opportunities for economic and social development if they lack adequate and appropriate access to financial products and services. Financial inclusion contributes to improved household welfare, increased business productivity and fostered economic growth. The measures taken to fight COVID-19 have given the financial inclusion a significant boost thanks to a wider range of financial services that being used remotely are helping to improve decision-making. Thus, the COVID-19 crisis is driving a massive shift toward using technology and innovations. Handled responsibly, the digitalization of finance, for both individuals and private sector, can help countries rebuild better after the pandemics. The world economy is now facing an urgency to address all the existent vulnerabilities with minimum costs and maximum time-saving, while financial inclusion has an important role to play in the process of adapting to new realities.