Financial Inclusion and Its Impact on the Banking Sector

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Financial inclusion is one of the most important modern concepts that has received increasing attention from international financial institutions and economic policymakers due to its vital role in enhancing financial stability and achieving sustainable economic development. The banking sector has experienced significant changes as a result of adopting financial inclusion strategies. Banks now focus on expanding their customer base, which contributes to increasing deposits, diversifying sources of finance, and improving banking efficiency. One of the key impacts of financial inclusion on the banking sector is enhanced financial stability, as risks are distributed across a wider base of customers. Financial inclusion also improves the effectiveness of monetary policy and supports banking innovation through the adoption of financial technologies. In conclusion, financial inclusion represents a strategic tool for strengthening the banking sector and supporting inclusive economic growth.