Financial Access

Financial Access

Access to finance refers to the possibility that individuals or enterprises can access financial services, including credit, deposit, payment, insurance, and other risk management services. Those who involuntarily have no or only limited access to financial services are referred to as the unbanked or underbanked, respectively.

Accumulated Eevidences have shown that financial access provides credit for the most promising firms promotes growth for enterprises through the provision of credit in the most promising firms, encourages more start ups, and enables incumbent firms to grow by exploiting growth and investment opportunities. It brings benefit to the economy benefits the economy in general by accelerating economic growth, intensifying competition, as well as boosting the demand for labor. In turn, Tthis helps those at the raises income for those in the lower end of the income distribution in reducing income inequality and poverty.

The lack of financial access limits the range of services and credits for household and enterprises. Poor individuals and small enterprises need to rely on their personal wealth or internal resources to invest in their education and businesses, which limits their full potential and leading to the cycle of persistent inequality and diminished growth.

Access to finance varies greatly between countries and ranges from about 5 percent of the adult population in Papua New Guinea and Tanzania to 100 percent in the Netherlands (for a comprehensive list of estimated measures of access to finance across countries, see Demirgüç-Kunt, Beck, & Honohan, 2008, pp. 190–191).

Read more about Financial AccessDefining and Measuring Access To Financial Services, Formal and Informal Financial Services, Barriers and Policies To Increase Access

Other articles related to "financial access, financial, access":

Financial Access - Barriers and Policies To Increase Access
... However, in many countries financial access is still limited to only 20–50 percent of the population, excluding many poor individuals and SMEs ... Many recents could explain the limited financial access especially among the poor ... the poor lack the education and knowledge needed to understand financial services that are available to them ...
Access To Finance - Barriers and Policies To Increase Access
... However, in many countries financial access is still limited to only 20–50 percent of the population, excluding many poor individuals and SMEs ... Many recents could explain the limited financial access especially among the poor ... First, the poor lack the education and knowledge needed to understand financial services that are available to them ...
Access To Finance - Defining and Measuring Access To Financial Services
... Access to finance (the possibility that individuals or enterprises can access financial services) should be distinguished from the actual use of financial ... Voluntary non-users of financial services have access to but do not use financial services either because they have no need for those services or because they decided not to make use ... Measuring financial access is essential for strengthening the link between theory and empirical evidence ...
Financial Access Initiative
... Established in 2006, the Financial Access Initiative (FAI) is an American consortium of researchers at New York University, Yale University, Harvard University and ... seeks to provide rigorous research on the impacts of financial access and on innovative ways to improve access ... FAI’s website states that financial access holds the promise to help low-income individuals in developing countries manage their economic lives and build wealth ...
Bill & Melinda Gates Foundation - Global Development Program - Financial Services For The Poor
... Financial Access Initiative A US$5 million grant allows Financial Access Initiative to do field research and answer important questions about micro finance and financial access in impoverished ... network in Latin America, and a pioneer at combining financial services with healthcare for the poorest women entrepreneurs ...

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