Financial Inclusion and Social Development for a Sustainable Economic System

Closes:

Introduction

Social development promotes a sustainable society and empowers human dignity. It is equally important for all humans and the economic system (Bilance, 1997). Social development aims to bring sustainable growth and development to society. It helps to eliminate discrimination and provide equal opportunities for all. Social development also plays an important role in an ecosystem in adding value to a quality life, dignity, income equality, good health, and education facilities. The well-being of an individual within society demands investment in people. It can be achieved by the removal of social and economic barriers. The world economies are engaged to improve the social well-being of individuals. The overall development of society mainly depends on the available financial resources. In this regard, financial institutions play a significant role in improving society's welfare (Sarma and Pias, 2011; Lal, 2021). This is possible to provide easy access to financial resources to the poor and deprived groups.

In the late 20th century, the concept of financial inclusion has emerged intending to provide financial services to every individual in society. Financial inclusion attained its popularity by 2010 and has been adopted by the world economies (Kabakova, & Plaksenkov, 2018). In this regard, the Global Partnership for Financial Inclusion (GPFI) foundation was founded to promote financial inclusion globally. Similarly, more than 55 nations have adopted financial inclusion, while more than 60 countries are under the developing stage to make it a national indicator (World Bank, 2018). Later on, financial inclusion became a social and economic phenomenon and captured the attention of practitioners and academicians. Past literature suggests that much work is still required to build a consensus on a unified definition of financial inclusion and its major impact on social development. Due to this, the researchers introduced the idea of financial inclusion with various economic indicators. In general, financial inclusion provides banking and financial services to vulnerable groups at an affordable price conveniently. According to World Bank, financial inclusion give access to finance to businesses and individuals at a reasonable cost to fulfill their needs such as credit, payments, transactions and insurance – deliver sustainably and responsibly.

Financial inclusion aims to provide ease of access to financial services to the underprivileged economic agents. It also targets marginalized and poor to benefit from financial resources and improve their living standards. Recently, technology and digitalization are giving a new dimension to this concept (Pradhan et al., 2021; Ahmad et al., 2021). Moreover, financial inclusion is also a great concern of world economies where access to finance is an acute problem (Beck, Demirguc-Kunt & Levine, 2007; Aghion & Bolton, 1997; Galor & Zeira, 1993; Kabakova, & Plaksenkov, 2018). The usage and access to financial resources are equally important for any population regardless of income and social status. Due to its relevance and importance in today’s world, financial inclusion has been listed in 7th position among 17 Sustainable Development Goals (SDGs). The World Bank also considers financial inclusion an enabler to reduce social and economic issues and boost prosperity in society.

List of topic areas

  • New determinants of financial inclusion for social challenges
  • Implications of financial inclusion on human development
  • Consequences of digital financial inclusion
  • Social inclusion and financial inclusion
  • Financial inclusion and economic sector stability
  • Women financial inclusion and economic development
  • Responsible digital finance
  • Financial inclusion and Sustainable Development Goals
  • Islamic financial inclusion and social well being
  • Financial literacy and Fintech disruption and social economics.

Submissions Information

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Key deadlines

Closing date for manuscripts submission: 30/06/2022

Guest Editors

Dr. Muhammad Ali

UCSI Graduate Business School

UCSI University Malaysia

[email protected]; [email protected]

Prof. Dr. Chin Hong Puah

Universiti Malaysia Sarawak, Malaysia

[email protected]

Prof. Dr. Siong-Hook Law

Universiti Putra Malaysia, Malaysia

[email protected]

 

References 

  • Aghion, P., & Bolton, P. (1997). A theory of trickle-down growth and development. The Review of Economic Studies, 64(2), 151-172. 
  • Ahmad, M., Majeed, A., Khan, M. A., Sohaib, M., & Shehzad, K. (2021). Digital financial inclusion and economic growth: Provincial data analysis of China. China Economic Journal, 1-20. 
  • Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, inequality and the poor. Journal of economic growth, 12(1), 27-49. 
  • Bilance, P. (1997). A world in balance–Bilance stands for social development (Policy Paper). Oegstgeest, Netherlands. 
  • Galor, O., & Zeira, J. (1993). Income distribution and macroeconomics. The review of economic studies, 60(1), 35-52.
  • Kabakova, O., & Plaksenkov, E. (2018). Analysis of factors affecting financial inclusion: Ecosystem view. Journal of business Research, 89, 198-205.
  • Pradhan, R. P., Arvin, M. B., Nair, M. S., Hall, J. H., & Bennett, S. E. (2021). Sustainable economic development in India: The dynamics between financial inclusion, ICT development, and economic growth. Technological Forecasting and Social Change, 169, 120758.
  • Sarma, M., & Pais, J. (2011). Financial inclusion and development. Journal of international development, 23(5), 613-628.
  • Lal, T. (2021), "Impact of financial inclusion on economic development of marginalized communities through the mediation of social and economic empowerment", International Journal of Social Economics, Vol. 48 No. 12, pp. 1768-1793.