Determinants of Financial Capability: A Situational Analysis for Namibia

Asa Romeo Asa and Johanna Pangeiko Nautwima
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Asa Romeo Asa: Faculty of Management Sciences, Namibia University of Science and Technology. Windhoek, Namibia
Johanna Pangeiko Nautwima: Namibia Business School, University of Namibia Windhoek, Namibia

International Journal of Innovation and Economic Development, 2021, vol. 7, issue 6, 7-13

Abstract: It is imperative that if the poor in society benefit from the massive developments in the financial sector, then such a sector must be genuinely inclusive. It should meet the needs of all citizens with the potential to use such financial services productively. This paper scopes financial inclusivity as a process ensuring ease of access, availability, and usage of financial services by all members of society. To reduce socio-economic inequality, the poor in developing countries, like everyone else, need access to a wide range of financial services that are convenient, flexible, and reasonably priced. Therefore, financial inclusivity is sought to be significant towards the global development agenda as a tool for increasing the poor’s access to financial services, often cited as a mechanism that can help reduce poverty and lower income inequality. For many years, microfinance has been heralded as a mechanism for enhancing financial inclusion. It provides an avenue through which the marginalized and the poor can access and benefit from the formal financial system. Moreover, financial inclusivity is substantially evident in the rural areas among the poor, who have no collateral or credit history for participating in the legal financial system. As a result, financial inclusion is receiving increased attention as an essential tool for reducing aspects of socio-economic inequality characterized by the isolation of individuals and communities from formal financial services, like affordable and accessible credit.

Keywords: Financial Inclusivity; Financial Capability; Financial Knowledge; Inequality (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:7:y:2021:i:6:p:7-13

DOI: 10.18775/ijied.1849-7551-7020.2015.76.2001

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