What is financial inclusion and why should we care?

In many low-income and transitional economies, most households and businesses do not have access to formal financial services. This “unbanked majority” therefore faces high transaction costs for payment services, can’t use cash savings services for income smoothing and asset accumulation, and does not have the option of generating additional income and investment through conventional credit services. High-income countries also have significant unbanked or underbanked populations, usually low-income househol