Measuring Financial Inclusion Among Asian Countries

Abstract

The study focuses on measuring the level of financial inclusion among Asian countries. The key component of financial and societal growth is thought to be easy access to financial products and services. A strong and ideal financial system is essential for a nation to advance, and financial inclusion is a key factor in fostering this structure. Those who are excluded from the formal financial system face a variety of hazards, such as diminished business prospects and social marginalisation. In general, having access to finance is typically empowering, especially for women, as it encourages significant financial and social inclusion. Financial inclusion reduces poverty and stimulates the economy. For the years 2010 to 2019, 30 Asian nations make up the sample for this study. The index of financial inclusion (IFI) calculated using the UNDP methodology. The results revealed that Japan, Singapore, Korea, China, Mongolia and Israel are at a high level of financial inclusion, whereas Bangladesh, Azerbaijan, the Rep. of, Kyrgyz Rep., Tajikistan, Pakistan, and Timor-Leste are at a low level of financial inclusion. Most Asian countries remain in the middle or low categories of financial inclusion.