Abstract

This paper focuses on financial inclusion of individuals, provides an overview of how Europe and Central Asian countries fare in the global context, and identifies opportunities and challenges in promoting financial inclusion.

Inclusive financial systems are those with a high share of individuals that use financial services. Such systems provide individuals with greater access to resources to meet their financial needs, such as saving for retirement, investing in education, capitalizing on business opportunities, and confronting shocks. Inability to use these financial services can contribute to persistent income inequality and slow economic growth. However, financial systems around the world are far from inclusive. Many poor people around the world lack the financial services that can serve these functions, such as bank accounts and digital payments.