What does being financially included look like?

What does being financially included look like?

While often equated with having an account, financial inclusion goes beyond account ownership. Being financially included enables one to access and use an appropriate financial product for a particular need, such as for building a buffer for emergencies; sending money to family in the province; starting a business; buying a house; protecting the family’s cashflow in times of disaster, health crisis, retirement, and death; or building wealth.

Being financially included therefore means having access to a wide range of fit-forpurpose financial services in line with one’s capabilities and needs. It does not mean that one will never have to worry about money again, but that one will have more and better options to save, borrow, transfer funds, invest, and get protection for one’s life and assets. Interest-bearing bank accounts, e-wallets, pooled funds, housing loan products, credit cards, and life insurance are just some of the financial products that help consumers and MSMEs smooth consumption, manage risk, and confidently pursue long-term financial goals. Among these tools, owning an account is deemed a core financial inclusion indicator as it facilitates basic financial transactions, i.e., store, send, and receive money. With appropriate use of these tools bolstered by financial literacy, consumers and businesses can become more financially resilient.