Measuring financial inclusion : a structured literature review

Abstract

The importance of financial inclusion is undisputed, and the effects of financially included societies are well documented. However, a gap remains in a unified definition and global measurements of financial inclusion. Measurement is key to understanding financial inclusion and identifying opportunities to remove barriers that may be preventing people from using financial services. This study aims to review and consolidate the literature on financial inclusion measurements. Measurement is key to understanding financial inclusion and identifying opportunities to expand it, especially in excluded contexts like underdeveloped regions. It is important, therefore, to conduct a literature review to understand current measurements of financial inclusion, the themes, and the theories that researchers have used in previous studies to help identify any possible gaps that can further improve understanding to inform future studies, policy direction that will impact social and economic outcomes. Methodology: This research paper follows a qualitative structured literature review approach with the hope of producing a transparent and reproducible review. Findings: The review shows that current measurements of financial inclusion are not applicable to all contents and there is need for new inclusive definitions and measurements, and there is need for a definition that is inclusive for developed and underdeveloped nations. Limitations: For an SLR on a topic of this magnitude, this research would have benefited from having two reviewers of the articles. Articles that include poor contexts are seen in non-ranked journals and conference papers; there is a need inclusion of these contexts in more mainstream highly ranked publications. Contributions: The study contributes to knowledge through the identification of gaps in literature on perspectives from underdeveloped countries. There is also the identification of the need for new inclusive measurement that will look at including women and digital financial inclusion measurements.