What is the difference between financial inclusion and finance?

The only difference

Inclusive finance is a type of finance. Financial inclusion refers to the provision of appropriate and effective financial services at affordable costs to all segments and groups of society in need of financial services, based on the requirements of equal opportunity and the principles of commercial sustainability.

And finance refers to all the reintegration of existing resources to achieve an equivalent flow of value and profit. Thus finance contains financial inclusion.

Background of Inclusive Finance

The concept of inclusive finance was put forward by the United Nations in 2005, which refers to the provision of appropriate and effective financial services at an affordable cost to all social classes and groups with financial service needs, and disadvantaged groups, such as micro- and small-sized enterprises, farmers, and low-income people in cities and towns, are its The focus of the service object.

Currently, although the development of inclusive finance in the international community has made certain achievements, there are still shortcomings, according to the World Bank estimates, in 2014, there are still about 2 billion adults who do not have access to the most basic financial services.

Expanded Information

Significance of Inclusive Financial Services

Inclusive finance attaches importance to the elimination of poverty and the realization of social equity, but it does not mean that inclusive finance is a public service oriented to the low-income population.

Pan Guangwei, secretary of the Party committee of the China Banking Association, pointed out that inclusive finance is not charity or relief, but is designed to help beneficiary groups enhance their blood-forming function, and that it is necessary to adhere to the principle of commercial sustainability, adhere to the combination of marketization and policy support, and establish a sound incentive and constraint mechanism to ensure sustainable development.

Inclusive finance needs to pay attention to the principle of marketability, and in the process of developing inclusive finance, it is necessary to meet the needs of more groups, but also to allow the supply side to reasonably benefit.