The Buzz Around Access to Financial Services by Individuals

Abstract

Expanding access to financial services is seen as a promising means of dealing with developmental challenges, reducing poverty,and promoting economic development. Greater access to financial services is essential to people’s well-being as it promotes entrepreneurship, moves people out of poverty, and provides hope for a better economic future. Tools such as savings, payment, andcredit services are crucial to smoothing household level consumption, helping insure against risk, and allowing investment in education and other capital forms. As a result, many developing countries have committed to increasing people’s access to financialservices, especially the poor. However, achieving access to financial services remains a challenge despite this high-level importance. This article focuses on the determinants of individuals’ access to financial services. It uses available literature and the National Income Dynamics Survey (NIDS) data for analyses.