Microfinance Social Impact
Financial inclusion is considered by the World Bank to be a key enabler in reducing poverty and boosting prosperity. The objective of microfinance is to provide financial services to impoverished individuals that are excluded from the tradicional banking system, because of their economical situation.
2017, in South America and Caribbean :
- 48% of the adults did not own a transaction account.
- 45% of male adults did not own a transaction account.
- 51% of female adults did not own a transaction account.
- Only 33% of the adult population borrowed
The microfinancial sector combats to improve these numbers on a daily basis, providing opportunities of sustainable grow and development in underdeveloped regions. Promoting equality of opportunities and improvement of their living standards.
Financial Inclusion & SDG
In 2015, member countries of the United Nations adopted the 2030 Agenda for Sustainable Development. Where, they designed 17 Sustainable Development Goals, essential for creating a “better and sustainable future for all”. The 17 goals are interconnected and the address global challenges our globalized society face.
In the Agenda 2030, the U.N highlighted the importance of financial inclusion in 5 of the 17 SDG´s. In “Achieving the Sustainable Development Goals: Role of Financial Inclusion” Klapper and coauthors (2016) state, based on empirical studies and evidence, financial inclusion directly promotes the first 5 objectives. Moreover, they conclude that their are strong theoretical motives to believe that financial inclusion can indirectly promote objectives: 6, 7, 8, 9, 10 & 16.
Financial Inclusion is of crucial importance toward achieving a prosperous and sustainable world.
More about Microfinance
If you want to know more about microfinance and financial inclusion, please visit our blog. Here are some of our most useful articles:
Origin of Microfinance
What is Microfinance?
Importance of Microfinance