Beyond inclusion : building people’s financial resilience

Abstract

This policy brief underscores the imperative of broadening the focus beyond mere financial inclusion to embracing a more comprehensive approach that enhances people’s financial resilience.

At the heart of this transition lies the recognition of the interconnectedness between financial inclusion and resilience. Policymakers must integrate resilience-building objectives into existing financial inclusion frameworks, fostering an enabling environment that incentivizes the provision of products and services designed to enhance resilience.

Empowering individuals and communities through financial education and literacy initiatives is central to building financial resilience. Equipping individuals with the knowledge and skills to manage financial risks effectively enhances their preparedness to navigate unexpected challenges and mitigate their impact. Additionally, promoting the adoption of digital financial technologies can improve accessibility and affordability, particularly for marginalized populations, further enhancing societal resilience in the face of shocks.

Consumer protection and robust monitoring and evaluation mechanisms are integral to building financial resilience. Ensuring the integrity and fairness of financial products and services through effective consumer protection frameworks safeguards individuals from exploitation and promotes trust in the financial system. Moreover, rigorous monitoring and evaluation mechanisms are essential for assessing the effectiveness of resilience-building interventions and identifying areas for improvement.