Optimal Financial Inclusion

Abstract

This chapter examines various conditions for optimality in financial inclusion. The optimal level of financial inclusion is achieved when basic financial services are provided to members of the population at a price that is affordable and that price is also economically sufficient to encourage providers of financial services to provide such financial services on a continual basis. Any level of financial inclusion that does not meet these conditions is sub-optimal and incentive-inefficient both for users and providers of financial services.

Citation

Ozili, P.K. (2020), "Optimal Financial Inclusion", Jeon, B.N. and Wu, J. (Ed.) Emerging Market Finance: New Challenges and Opportunities (International Finance Review, Vol. 21), Emerald Publishing Limited, Leeds, pp. 251-260. https://doi.org/10.1108/S1569-376720200000021014