Economic Development Rapport With Financial Inclusion Composite Index

Abstract

Financial inclusion, access to useful and affordable financial services and products, are viewed differently across regions worldwide due to varying needs and differences in financial goods requirements among individuals and countries. However, most academics and thinkers believe that financial inclusion refers to easily accessible banking services at reasonable costs in satisfactory and appropriate formats. Financial Inclusion helps to improve health and well-being (SDG 3). This study aims to assess the link between the financial inclusion index and both economic and socioeconomic development in the present era. Using panel data techniques, the study analyzes a sample from the developing South Asian region spanning the period from 2004 to 2020. According to the findings of the study, an increase in the number of people who have access to financial services led to an intensification in economic growth as well as in the taxonomy of the human development index. Based on these findings the study recommends that policymakers enhance financial inclusion levels to promote optimal, sustainable, and inclusive economic growth and development. This can be achieved by addressing regional structure and disparities as well as by accentuating financial inclusion metrics.