Financial Inclusion: An Overview of Its Various Dimensions and Its Assistance in Reducing Private Sector Insolvency

  • Christos V. Gortsos
  • Vasilis Panagiotidis
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


The chapter discusses financial inclusion, which is defined as the process of ensuring affordable, prompt and adequate access to a wide range of financial products and services, as well as proliferation of their use in all parts of society with a special focus on vulnerable groups, through the implementation of existing and innovative approaches, such as financial literacy programmes. It presents, on an introductory base, the typical indicators for the measurement of financial inclusion, causes of financial exclusion, the value inherent in financial inclusion and more precisely the interaction with monetary policy and financial stability, the correlation between financial literacy and financial inclusion, the need for coordinated efforts to extend financial inclusion on both a national level and an international level and the use of technological means as a solution against financial exclusion and implementation of innovative financial literacy programmes.


Financial inclusion Financial literacy Financial stability Access to financial products and services 


  1. Agarwal, S., Chomsisengphet, S. and Y. Zhang (2015): How Does Financial Literacy Affect Mortgage Default?, Social Science Research Network (SSRN) Financial Literacy e-Journal, August, available at:
  2. Ambarkhane, D., Singh, A.S. and B. Venkataramani (2014a): Role of Mobile Banking in Financial Inclusion, Social Science Research Network (SSRN), August, available at:
  3. Ambarkhane, D., Singh, A.S. and B. Venkataramani (2014b): Developing a Comprehensive Financial Inclusion Index, Social Science Research Network (SSRN), 23 August, available at:
  4. Ambuehl, S., Bernheim, B.D. and A. Lusardi (2014a): Financial Education, Financial Competence and Consumer Welfare, Global Financial Literacy Excellence Center (GFLEC) Working Paper Series No 2014–4, George Washington University School of Business, October, available at:
  5. Ambuehl, S., Bernheim, B.D. and A. Lusardi (2014b): The Effect of Financial Education on the Quality of Decision Making, NBER Working Paper Series No 20618, October, available at:
  6. An, X., Bostic, R.W. and V.W. Yao (2015): Financial Literacy and Mortgage Credit: Evidence from the Recent Mortgage Market Crisis, Social Science Research Network (SSRN) Financial Literacy e-Journal, July, available at:;
  7. Anand and Prasad (2012): Optimal Price Indices for Targeting Inflation Under Incomplete Markets, Journal of Economic Literature (JEL), January, available at:
  8. Anderson, A., Baker, F. and D.T. Robinson (2015): Optimism, Financial Literacy and Participation, Social Science Research Network (SSRN) Financial Literacy e-Journal, May, available at:;
  9. Atkinson, A. and F. Messy (2015): Financial Education for Migrants and their Families, OECD, Working Papers on Finance, Insurance and Private Pensions, No 38, OECD Publishing, Paris, March, available at: 5js4h5rw17vh-en
  10. Basel Committee on Banking Supervision (2012): “Core principles for effective banking supervision” September, available at:
  11. Basel Committee on Banking Supervision (2015): Range of practice in the regulation and supervision of institutions relevant to financial inclusion, Report, BIS, January, available at:
  12. Brugiavini, A., Cavapozzi, D., Padula, M. and Y. Pettinicchi (2015): Financial education, literacy and investment attitudes, Network for Studies on Pensions, Aging and Retirement (NETSPAR) Discussion Paper No 06/2015–014, June, available at:
  13. Cámara, N. and D. Tuesta (2014): Measuring Financial Inclusion: A Multidimensional Index, BBVA research, Working Paper, No 14/26, Madrid, September, available at: WP14-26_Financial-Inclusion2.pdf
  14. Caruana, J. (2014): Welcoming remarks at the 2nd Conference on Standard-Setting Bodies and Financial Inclusion, Basel, Switzerland, 30 October, available at:
  15. Caruana, J. (2012): Financial inclusion: the role of the Basel Process, opening remarks at the First Annual GPFI Conference on Standard-Setting Bodies and Financial Inclusion: Promoting Financial inclusion through Proportionate Standards and Guidance, hosted by the Financial Stability Institute at the Bank for International Settlements, Basel, 29 October, available at:
  16. Chakrabarty, K.C. (2011): Financial inclusion and banks—issues and perspectives, address at FICCI—UNDP Seminar on “Financial Inclusion: Partnership between Banks, MFIs and Communities”, New Delhi, 14 October, available at: http://www.bis. org/review/r111018b.pdf
  17. Chakraborti, S. and S. Sanyal (2015): Heuristic Algorithm using Internet of Things and Mobility for solving demographic issues in Financial Inclusion projects, Cornell University Library, available at:
  18. Committee on Payments and Market Infrastructures—World Bank Group (2016): Payment aspects of financial inclusion, Report, Bank for International Settlements—World Bank Group, April, available at: publ/d144.htm
  19. Committee on Payments and Market Infrastructures—World Bank Group (2015): Payment aspects of financial inclusion, Consultative Report, Bank for International Settlements—World Bank Group, SeptemberGoogle Scholar
  20. Consultative Group to Assist the Poor (2005): AML/CFT regulation: implications for financial service providers that serve low-income people, Report, World Bank, July, available at:
  21. Debbich, M. (2015): Why Financial Advice Cannot Substitute for Financial Literacy?, Banque de France—Direction Générale des Etudes et des Relations Internationales, Document de Travail No 534, January, available at:
  22. Dema, E. (2015): Managing the twin responsibilities of financial inclusion and financial stability, AFI, Issue 2, May, available at: publications/BNR_Annual_Reports/Financial_Stability_Reports/Financial_Inclusion_and_Finacial_Stability_AFI.pdf
  23. Demirguc-Kunt, A., Klapper, L., Singer, D. and P. Van Oudheusden (2015): The Global Findex Database 2014, Measuring Financial Inclusion around the World, Policy Research Working Paper 7255, available at: servlet/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf
  24. Dhar, S. K. (2015): Role of Electronic Banking in Financial Inclusion, SSRN, 6 March, available at:
  25. Dittus, P. and M. Klein (2011): On harnessing the potential of financial inclusion, BIS Working Papers No 347, May, available at:
  26. European Banking Authority (2014): Report on the results of the Survey on the Access to Finance of Enterprises in the euro area—October 2014 to March 2015, 2 June, available at:
  27. European Commission (2009): Financial Inclusion: Ensuring access to a basic bank account, Consultation Document, available at: consultations/docs/2009/fin_inclusion/consultation_en.pdf
  28. European Commission (2008): Financial Services Provision and Prevention of Financial Exclusion, Report, March, available at:
  29. FATF (2012): The FATF Recommendations, February, available at:
  30. FATF (2013): Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion, Guidance, February, available at: fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf
  31. Financial Inclusion Commission (2015): Financial Inclusion, Improving the Financial Health of the Nation, Report, Great Britain, March, available at: http://www.
  32. Financial Stability Institute (2014): Second GPFI/BIS conference explores implications of rapid progress on digital financial inclusion, second G20 GPFI Conference on Standard-Setting Bodies and Financial Inclusion, Bank for International Settlements, 31 October, available at:
  33. Fort, M., Manaresi, F. and S. Trucchi (2014): Adults’ Financial Literacy and Households’ Financial Assets: The Role of Banks Information Policies, Centre for Economic Studies and Ifo Institute (CESIFO) Working Paper Series No 5047, October, available at:
  34. Geraldi, K., Goette, L. and S. Meier (2010): Financial Literacy and Subprime Mortgage Deliquency: Evidence from a Survey Matched to Administrative Data, Federal Reserve Bank of Atlanta Working Paper Series, April, available at:
  35. Gerrans, P. and R.A. Heaney (2014): The Role of Undergraduate Personal Finance Education in Financial Literacy, Financial Attitudes and Financial Behaviours, Social Science Research Network (SSRN) Financial Literacy e-Journal, December, available at:
  36. Gómez, U.L. (2015): Financial Exclusion in the European Union: Addressing Difficulties in Accessing Finance within the Current Integration Framework, Journal of Contemporary European Studies, Volume 23, Issue 1Google Scholar
  37. Gortsos, Ch.V. (2012): Fundamentals of Public International Financial Law: International Banking Law within the System of Public International Financial Law, Schriften des Europa-Instituts der Universität des Saarlandes—Rechtswissenschaft, Nomos Verlag, Baden-BadenGoogle Scholar
  38. Gortsos, Ch.V. (2015): Financial inclusion: an overview of its various dimensions and the initiatives to enhance its current level, Journal of Financial Law, 3rd quarter, Nomiki BibliothikiGoogle Scholar
  39. GPFI (2014): 2014 Financial Inclusion Action Plan, September, available at: http://
  40. GPFI (2012): Financial Inclusion—A pathway to financial stability? Understanding the linkages, Basel, 29 October, available at: documents/GPFI%20SSBs%20Conference%20%20Issues%20Paper%203%20Financial%20Inclusion%20%E2%80%93%20A%20Pathway%20to%20Financial%20Stability_1.pdf
  41. Han, R. and M. Melecky (2013): Financial Inclusion for Financial Stability: Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis, World Bank, Washington, August, available at: bitstream/handle/10986/16010/WPS6577.pdf?sequence=1
  42. Irving Fisher Committee on Central Bank Statistics (2016): Measures of financial inclusion—a central bank perspective, Report, BIS, June, available at: ifc/publ/ifc_finan_inclu.pdf
  43. Kazakos, P. (2014): Griechenland in der Krise—Anpassungsprogramme und Widerstände. Eine vorläufige Bilanz, in European Politeia, Issue 1—Debt Crisis, EPLO (European Public Law Organisation), pp. 127–158Google Scholar
  44. Khan, H.R. (2011): Financial inclusion and financial stability: are they two sides of the same coin?, address, BANCON 2011, organized by the Indian Bankers Association and Indian Overseas Bank, Chennai, 4 November, available at: review/r111229f.pdf
  45. Lusardi, A. (2014): Financial Literacy: Do People Know the ABCs of Finance?, Global Financial Literacy Excellence Center (GFLEC) Working Paper Series No 2014-9, George Washington University School of Business, November, available at:
  46. Lusardi, A. and C.B. Scheresberg (2013): Financial Literacy and High-Cost Borrowing in the United States, Global Financial Literacy Excellence Center (GFLEC) Working Paper Series No 2013-1, George Washington University School of Business, January, available at:
  47. Lusardi, A., Mitchell, O.S. and V. Curto (2009): Financial Literacy among the Young: Evidence and Implications for Consumer Policy, NBER Working Paper Series No 15352, September, available at:
  48. Lusardi, A. and O.S. Mitchell (2006a): Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education, University of Michigan Retirement Research Center Working Paper No 2006-144, December, available at:
  49. Lusardi, A. and O.S. Mitchell (2006b): Financial Literacy and Planning: Implications for Retirement Wellbeing, Retirement Research Consortium (RRC)—Wharton School Pension Research Council, October, available at:
  50. Mancebon, M.J., Ximenez-de-Embun, D.P. and J.M. Gomez-Sancho (2015): What determines the financial literacy of young people? An analysis from PISA 2012, Social Science Research Network (SSRN) Financial Literacy e-Journal, February, available at:
  51. Mehrotra, A. and J. Yetman (2015): Financial Inclusion—Issues for Central Banks, BIS Quarterly Review, March, available at:
  52. Mehrotra, A. and J. Yetman (2014): Financial inclusion and optimal monetary policy, BIS Working Papers No 476, December, available at: publ/work476.pdf
  53. Mitchell, O.S. and A. Lusardi (2015): Financial Literacy and Economic Outcomes: Evidence and Policy Implications, Global Financial Literacy Excellence Center (GFLEC) Working Paper Series No 2015-1, George Washington University School of Business, January, available at:
  54. Morgan, P. and V. Pontines (2014): Financial Stability and Financial Inclusion, ADBI Working Paper 488, Tokyo: Asian Development Bank Institute, available at:
  55. Neuberger, D. (2015): Financial Inclusion, Regulation, and Education in Germany, ADBI Working Paper Series No. 530, Tokyo: Asian Development Bank Institute, June, available at: 160699/adbi-wp530.pdf
  56. OECD (2013a): Financial literacy and inclusion—Results of OECD/INFE survey across countries and by gender, Publication, June, available at: daf/fin/financial-education/TrustFund2013_OECD_INFE_Fin_Lit_and_Incl_Survey Results_by_Country_and_Gender.pdf
  57. OECD (2013b): PISA 2012 Financial Literacy Framework, available at:
  58. OECD (2005): Recommendation of the Council on Principles and Good Practices on Financial Education and Awareness, June, available at: financial-education/35108560.pdf
  59. Ooijen, R.V. and M.V. Rooij (2014): Mortgage risks, debt literacy and financial advice, De Nederlandsche Bank (DNB) Working Paper Series No. 449, November, available at:
  60. Palmer, L., Goetz, J. and S. Chatterjee (2009): Expanding financial education and planning opportunities through service-learning, Financial Services Review 18, University of Georgia, Department of Housing and Consumer Economics, Athens, available at:, pp. 157–175
  61. Ponce, J. (2015): The Directive 2014/92/EU of the European Parliament and of the Council, of 23 July 2014, and the access to payment accounts with basic features, paper presented at Workshop II of the EGPL meeting of 2015 with the title: Financial inclusion: services of general economic interest in the banking sector and citizen’s rightsGoogle Scholar
  62. Rahman, A. (2014): The mutually-supportive relationship between financial inclusion and financial stability, AFI, Issue 1, May, available at: default/files/publications/afivp1-11.pdf
  63. Ramakrishnan, R. (2011): Financial Literacy—The Demand Side of Financial Inclusion, 26th SKOCH Summit, Swabhiman-Inclusive Growth and Beyond, June, available at:
  64. Sahay, R., Čihak, M., N’Diaye, P., Barajas, A., Mitra, Sr., Kyobe, An., Mooi, Y.N., and S.R. Yousefi (2015): Financial Inclusion: Can It Meet Multiple Macroeconomic Goals?, IMF Staff Discussion Notes, SDN/15/17, SeptemberGoogle Scholar
  65. Samy M., Tawfik, H., Huang, R. and A. Κ. Nagar (2005): Financial Literacy of Youth. A Sensitivity Analysis of the Determinants, International Journal of Economic Sciences and Applied Research, Liverpool Hope University, available at:, pp. 55–70
  66. Shehu Abdullahi Y. (2012): Promoting financial inclusion for effective anti-money laundering and counter financing of terrorism (AML/CFT), Crime, Law and Social Change, Volume 57, Issue 3, April, pp 305–323.Google Scholar
  67. Stephanou, C.A. (2013): Building Firewalls: European Responses to the Sovereign Debt Crisis, in Hieronymi, O. and C.A. Stephanou (2013, editors): International Debt: Economic, Financial, Monetary, Political and Regulatory Aspects, Basingstoke UK: Palgrave Macmillan, London, Chapter 4, pp. 127–158Google Scholar
  68. Tetangco, A.M. (2014): Improving financial literacy and increasing financial inclusion to sustain economic growth, speech at the SharePHIL’s 7th General Membership Meeting and Forum on “Improving Financial Literacy and Increasing Financial Inclusion to Sustain Economic Growth”, Manila, 5 November, available at:
  69. Tew, K.M. and P.L. Tew (2014): Does Knowledge of Financial Concepts Equate to Smarter Financial Decisions?, Social Science Research Network (SSRN) Financial Literacy e-Journal, December, available at:
  70. United Nations Capital Development Fund (2006): Building Inclusive Financial Sectors for Development, United Nations, New YorkGoogle Scholar
  71. Van den Bergh, P. (2012): Overview of international and national initiatives to promote financial inclusion and its measurement, IFC Workshop on Financial Inclusion Indicators, Irving Fisher Committee on Central Bank Statistics IFC Bulletin No 38, January, available at:
  72. Wentzel, A. (2013): Why financial education fails the extremely poor, Social Science Research Network (SSRN) Financial Literacy e-Journal, December, available at:
  73. World Bank (2014): Global Financial Development Report: Financial Inclusion, Washington, available at: 10986/16238/9780821399859.pdf?sequence=4
  74. Zeti, A.A. (2014): Advancing financial inclusion to its next level, keynote address at the AFI 2014 Global Policy Forum, Spain, 10 September, available at: http://www.bis. org/review/ r140911f.pdf
  75. Zimmermann, H. (2015): The deep roots of the government debt crisis, The Journal of Financial Perspectives, EY Global Financial Services Institute, March, Volume 3, Issue 1, pp. 33–42.Google Scholar

Copyright information

© The Hellenic Bank Association 2017

Authors and Affiliations

  • Christos V. Gortsos
    • 1
  • Vasilis Panagiotidis
    • 1
  1. 1.The Hellenic Bank AssociationAthensGreece

Personalised recommendations