Financial Inclusion and Financial Literacy

Abstract

Finance is, unarguably, an integral part of everyday life and living. Therefore, financial literacy is an essential life skill. Little wonder, therefore, it is widely flag high on the economic policy agenda of emerging economies, globally. This imperative is buoyed by unrelenting growth and sophistication of financial services offerings, mobile demographics, as well as global pursuit of policies that expand and strengthen national welfare systems. Financial literacy is a sine qua non for financial inclusion. Financially disadvantaged and vulnerable segments of the society are enabled to actively contribute to national development through the protection, from social and economic shocks, offered by financial inclusion. Most vulnerable is the sizable rural population with limited access to conventional financial institutions or services in most countries of the world. Financial inclusion (FI) is the process of ensuring access by this segment of society to appropriate financial products and services at an affordable cost in a fair and transparent manner. This chapter looks at the concept and significance of financial literacy, its derivative, financial inclusion, and how both interplay in deepening inclusive economic development.

1. Introduction

Inclusive and exclusive growth are the two sides of new mantra promoted globally, through which new methods and schemes are adopted to bring the chunk of disadvantaged, vulnerable, and other excluded populations into the fold of finance. The concept and practice of financial inclusion have grown to become the leading light in the overall strategy of nations for inclusive growth. This explains the prominence, it has assumed in public discourse, lately. Inclusive financing delivers financial services affordably to the vulnerable, disadvantaged, and low-income populations. This motivation, in India, led to the introduction of financial inclusion in 2005. Financial inclusion is a top, people empowering, poverty reduction, program of both emerging and established nations, as well as major development agencies. To push toward worldwide financial inclusion, the central banks of nations have introduced and/or supported several initiatives, pointing to ways in which the efforts of governments, in this direction, can be made more fruitful.

Enabling financial inclusion is the primary focus of financial literacy inventiveness. This postulation, drawn from evidence-aided understanding of the critical local conditions, of denial or deprivations that contribute to backwardness or lack of development in remote areas, accords with the findings of [1]. It is also a defining acknowledgment of the benefits and risks inherent in the role of financial inclusion as an effective mitigation tool for such conditions.

Accordingly, the baseline of financial literacy is creating and raising the level of awareness on (i) financial services offerings and conditionalities among the people, stratified into urban, peri-urban and rural areas, (ii) the locations of functional and affordable financial services access or dispensing points, (iii) costs and redress mechanisms when up taking financial services at designated access points, (iv) the nature of utility of the financial/banking services on offer, and (v) available alternative financial inclusion schemes within the financial ecosystem of the particular jurisdiction. Overall, financial literacy aims at increasing the reachability of financial services to the demographically disadvantaged, vulnerable, rural and poor individuals, households, and communities, who are more often financially excluded from the conventional financial offerings.

2. Financial literacy

Global demographics point to many citizens’ inadequate understanding of either their financial needs or the financial instruments/products available and how to access them beneficially. Financial literacy is the knowledge of how, where, and when to make nifty decisions with money and near money, including, but not limited to, budgeting, savings, investments, favorable loan terms, credit impact mitigation strategies, and diverse retirement schemes. So, it is the possession of skills, knowledge, and actions that allow individuals make informed decisions regarding money and money derivatives. One measure or evidence that one is financially literate is taking the right steps to the right financial outcomes and not just understanding the facts about money.

2.1 Contextualization of financial literacy

Financial literacy is conceptualized, defined, and pursued on the public policy recognition that financial inclusion connotes all initiatives aimed at keeping formal financial services available, accessible, and affordable to all segments of the population [2]. Therefore, financial literacy enthuses definite lots of the society, traditionally unserved formal financial services as a direct response to their personal attributes and economic conditions. Unarguably, there are three constants in life: change, taxes, and economic recessions. While practitioners concede that personal development may not easily save one from the first two, financial literacy can definitively help circumnavigate the third. The essential core of financial literacy is to learn how to manage finances wisely, plan for the future, make smart financial choices, thrive in uncertain times by wisely exploring investment opportunities, understanding our risk appetites, and taking actions in line with this understanding to secure our future. We are living in a time of great economic uncertainty, and globally, countries are facing the effects of inflation and other challenges. That is why it is essential to prioritize financial literacy: first as a window to financial inclusion and, ultimately, economic inclusion and development.

2.2 Objectives of financial literacy

The overarching philosophy behind financial literacy is providing every household with access information and sufficient education to a suite of modern financial services, including savings, credit, insurance, and payments to make good financial decisions for themselves. Accordingly, financial literacy initiatives must seek to educate all segments of the population to recognize and uptake formal financial services to achieve inclusive economic development. Attainment of high financial literacy success rate must definitely move individuals and small businesses into the financial services net, enabling them to play actively in the domestic economic space, especially as providers of employment opportunities and generators of primary, as well as secondary sources of household income. To be financially literate is to know how to manage your money (how to borrow and save money) responsibly, as well as how and why to invest and plan for retirement.

2.3 The components and rules of financial literacy

The key dimensions of financial literacy are budgeting, saving, managing debt, investing, and managing credit. There are four rules for constructing financial literacy, namely budgeting, expenditure tracking, debt management, and retirement planning. The principles of financial literacy can basically, therefore, be narrowed to three, namely: (i) making and growing earnings beyond the level of spending; (ii) achieving financial success and freedom that makes money work for the financially literate; and (iii) attaining a readiness for the unexpected turn of events, arising from changes in living conditions and/or the quantum of disposable income. This requires literacy on what insurance or other hedging schemes are available against such adverse turns. Accordingly, to halt and reverse financial illiteracy, a person has to commit to the following: (1) Pitch into financial literature, particularly free online newsletters, from trusted sources; (2) Watch or listen to mainstream media financial tele/broadcasts, podcasts, and features; (3) Make a habit of reading personal and general finance books and learning materials; (4) Use social media and online com-munication search engines and websites wisely; (5) Prepare and retain a budget and a notepad on financial terms and new learnings, working to internalize them; and (6) Routinely engage with a financial professional when all else fails.

Financially literate individuals are “mathematically” and “emotionally” enlightened and able to effectively manage money, understand credit/debt management, assess the need for insurance and indemnification, evaluate various risks and compensations related to savings and investment opportunities, and understand wider ethical considerations, inherent in the choices they make. Countries are increasingly cognizant of the importance of financial literacy and are providing an assortment of financial literacy programs through appropriate information, education, and communication materials. Others are pushing national policies and strategies to coordinate and guide their financial literacy programs to achieve the ultimate outcome of financial inclusion.

2.3.1 Digital financial literacy

Digital financial literacy is the concept of acquiring appropriate IT-based knowledge, skills, confidence, and competencies to safely use digitally delivered financial products and services. Today, almost all financial products and services, as well as information related to them, are offered or at least available online. Digital financial literacy is, without doubt, the nexus between financial literacy and financial inclusion that is the current crave of nations across jurisdictions. For countries with a sizeable rural poor population with limited access to conventional financial institutions or services, embracing digital financial literacy resources can help this dominant population demographic take charge of their finances through digital financial services offerings, thereby improving their economic wellbeing. This will engender support to national monetary policy feasance and contribute to economic development unobtrusively. There is no gainsaying that, without appropriate digital financial literacy resources and the attendant education they convey, many people would shy away from a gamut of financial services and/or live at the heightened risk of fraud or fraud-enabling forces/schemes.

2.4 Benefits of financial literacy

Individual life goals can be realized through financial literacy by borrowing correctly and operating enterprises to survive and grow. Key benefits of financial literacy include knowledgeably creating a budget, planning for retirement, managing debt, and tracking spending. To a nation, it accentuates the acceptance and sustainability of a regime of financial inclusion. It supports financial sector deepening and economic well-being, through the achievement of monetary policy targets, because less people get excluded from main and sub-stream financial systems. Therefore, successful financial literacy must leverage a strong platform for shared values and experiences, based on a twin-track feedback mechanism between the regulators and the regulated. More specifically, direct benefits derivable from successful financial literacy efforts include: (a) improving both the security and social cohesion of individuals and nations; (b) halting and reversing the catastrophic consequences from inequalities between societal cadres (ethnic, racial, or gender lines); (c) validating the government’s commitment as the “protector of last resort,” thereby reducing the number of the poor and the burden on the tax paying public, ensuring a minimum social security net; (d) empowering people to be more astute about saving and investing; e) protecting the unguarded or unsuspecting citizens from those who prey upon their ignorance, vulnerability, and greed; (f) inculcating lifelong financial skills and habits, necessary to participate sensibly in financial markets, conducing better enabling environment, where reprobate products are forced out of the market-place and confidence is raised; and (g) stimulating quality financial services, thereby contributing meaningfully to national economic growth and development. These findings are corroborated by Johnson [3]. It is to be noted that the effectiveness of financial literacy campaigns can, sometimes, be counteracted by controlling psychological or behavioural traits, such as fear, risk aversion, inertia, and lack of willpower by target citizen groups, although these peter away as financial literacy takes root.

2.5 Essential skills for achieving and maintaining financial literacy

A number of skills (financial and soft) by finance professionals can be isolated as disposing factors for achieving and maintaining financial literacy success.

2.5.1 Finance skills

Finance skills refer to the set of abilities and knowledge to manage financial resources effectively and notably, include inter alia, budgeting, financial analysis, problem-solving, ethics, risk assessment, strategic financial planning, and project management. The possession of these critical skills leads to improved financial decision-making and a better navigation of the prevailing economic landscape to achieve success. For fuller appreciation of the skills explained here and in the following sections, readers are encouraged to seek specific information about each of them individually.

2.5.2 Communication and interpersonal skills

Communication and interpersonal skills are top-notch on the pile of essential skills for financial services providers and discerning users, for a number of reasons. Firstly, finance professionals, routinely, handle complicated financial data to be presented to clients and stakeholders. Therefore, they need to possess the ability to communicate information concisely and in an easily understandable manner to hallmark success. Secondly, the need to work closely with colleagues and clients (service up takers) to achieve shared goals, calls for strong interpersonal skills to establish trust, build and sustain relationships, as well as facilitate effective teamwork. Lastly, the work requires seamless and sensitive interaction with individuals and groups from different cultures and backgrounds, necessitating excellent communication, diversity tolerance, and interpersonal skills.

2.5.3 Problem-solving skills

Decisions about where and how to uptake financial services present challenges (from simple to very complex scenarios) that can significantly impact the success of financial literacy efforts or even financial inclusion coverage. Should such arise, solid problem-solving skills, help identify potential problems before they arise, and evolve frontal hands-on actions and ingenious resolutions to redress the identified challenges. This is because manifest problem-solving skills call to play critical thinking, attention to detail, and a willingness to work collaboratively with colleagues and clients to achieve desired financial literacy outcomes.

2.5.4 Ethical orientation skills

The drive for financial inclusion, through effective financial literacy schemes, requires both provider and user to be ethically oriented and enamoured. The prerequisites for this are high trust, mutual responsibility and accountability, conflict of interests management, and confidentiality. Besides, the motivation for making financially sound and ethically responsible investment decisions, in the management of other people’s money, places a burden on regulatory bodies and financial institutions to seek and enforce strict ethical standards and codes, with violations not lightly treated. Society and financial services vendors must clarify their ethical guidelines, unambiguously, so that service up takers know what is expected of them when using a preferred service offering, selected access points or tools, and what the consequences are if improperly used.

2.5.5 Accounting skills

This set of skills enables accurate and effective analysis of financial data and helps in evaluating financial performance, identifying trends, forecasting future performance, financial planning, managing financial exposures, and achieving regulatory compliance requirements draws in accounting skills, even at the sublime level.

2.5.6 Tactical financial planning skills

Similar to problem-solving skills in resolving financial challenges faced by businesses, tactical financial planning enables skill-holders navigate economic uncertainties to create a roadmap for financial performance, stability, and growth. This set of skills positions one to make informed decisions, to effectively allocate resources, recognize potential financial risks and opportunities, and ably evolve strategies to mitigate or capitalize on them.

2.5.7 Reporting skills

Beyond the analysis of financial data, reporting results to stakeholders in an easy-to-understand manner is crucial in making informed investment and financial service up taking decisions. Closely related to accounting skills and working knowledge of financial analysis tools and techniques, such as ratio analysis and trend analysis, suitable reporting skills eases understanding, interpretation, and use (the main end point of financial literacy) of the analyzed financial data.

2.5.8 Analytical skills

Possessing and demonstrating relevant analytical skills is critical in identifying trends, risks, and opportunities associated with financial services offerings, including the pedigree of the financial services provider data and posturing, to determine whether to take up or disengage a service.

2.5.9 Project management skills

Procuring the skills of planning and budgeting, analyzing financial data, making informed decisions about resource allocation as well as effective project management, helps further financial literacy. This involves the skill to improve the overall financial performance objectives by delivering projects (such as achieving national financial inclusion) on time, within budget, and with good quality outcomes.

2.5.10 Digital/soft skills

Possession of excellent computer (digital/soft) skills to unravel vast financial documentation, several financial analysis software manifestations, as well as digital financial data organization is sine qua non for delivering cutting-edge financial services.

2.5.11 Vulnerability or threat analysis skills

Whether at the strategic, tactical, or rudimentary level, possessing demonstrable quantitative and qualitative threat analysis skills emboldens one’s ability to identify, evaluate, and prioritize inherent risks, and develop mitigation or avoidance strategies for long-term success. These skills include, but not limited to, mathematical and statistical risk probability and impact models, expert judgment, and subjective assessment (from reference of peers who have used the product/service) for risks that are difficult to quantify.

3. What is financial inclusion?

Financial inclusion is the process of ensuring unambiguous and non-discriminatory uptake of appropriate financial services, but particularly by those groups that are usually underserved and financially excluded, who currently only have access to basic financial products. This must be at an affordable cost, in a fair, transparent, ethically sound, and dignifying manner. Financial inclusion is viewed as the ability to access and use basic financial services in a manner that is reasonably convenient, reliable, and flexible. Financial inclusion depicts an ecosystem of sustainable, relevant, cost-effective, and meaningful financial services for the financially underserved population, especially rural dwellers. That is, financial inclusion is measured by the adequate, safe, convenient, and affordable range of financial services taken up by citizens, particularly, the low-income, vulnerable, rural, and undocumented person groups. Accordingly, financial inclusion is measured by the proportion of the general population that has this access.

3.1 Contextualization of financial inclusion

As a result of the increasing policy interest in financial inclusion, globally, countries are pursuing policies to strengthen to ensure that all populations excluded from financial services are reached and served [4]. Financial inclusion has been identified, globally, as a major channel for speeding up economic development through its impact on the growth and development of micro, small, and medium enterprises (MSMEs) and other business collectives. This is in recognition, by the central banks of nations that access to microfinance is critical to the survival and growth of MSMEs operators. The contextualization is, therefore, that financial inclusion is to draw the unbanked population into the formal financial system, positioning them to access the whole gamut of financial services that meet their needs at an affordable cost. Financial inclusion, construed as access to financial services, varies widely in concepts across the globe in recognition of jurisdictional peculiarities.

3.2 Why is financial inclusion important?

Financial inclusion is important for a number of reasons, namely:

1. Facilitation of ease of access to appropriate financial instruments, which is construed as the “per Mille” availability of service branches or access points.

2. Uplifting of the financial conditions and improving the general standard of living.

3. Improved efficiency of the financial intermediation process, as well as deepening the financial system, wholistically.

4. Inclusion reduces income disparity by motivating the excluded to join in and invest in physical assets and self-education.

5. Impacts development, invariably aiding poverty reduction, and long-term economic growth.

6. Engineers credit expansion and the accommodation of relatively unregulated segments of the financial ecosystem, with the caveat that capacity must be built deliberately in this direction;

7. Offers incremental complementary solutions that tackle poverty, promoting inclusive development and addressing the sustainable development goals (SDGs) targets;

8. Ensures that economic growth performance is inclusive and sustained, and

9. Enhances the effectiveness of monetary and fiscal policies of government.

At the long range, access to financial and nonfinancial banking services (roughly called business development services) are crucial ingredients in realizing the potentials of micro, small enterprises in creating jobs, restraining poverty, and spurring economic growth. Aduda and Kalunda [5] promotes mainstream viewpoint that financial inclusion is an unmistaken prerequisite for economic growth and development as a result of its ability to enhance capital creation, finance sector saving, bolster requisite intermediation, and by implication, investment. According to the general theory of entrepreneurship, the abilities to identify and tap the opportunities provided by external business environments to start up or improve businesses differ across individuals and depend on the individuals’ abilities to access information and inclination to act upon the information in terms of risks. The theory promotes entrepreneurial opportunity discovery, evaluation, and utilization to exploit and predicts individual attributes made up of psychological and demographic factors, such as gender. In this context, access to quality and affordable financial services and products may help people, especially women and vulnerable groups to exploit available business opportunities. This is the nexus between financial literacy and financial inclusion.

3.3 Objectives of financial inclusion

The level of access to quality financial is one major driver of economic growth, meaning the objective is to create linkages that make usage of cheap, convenient, and dignifying. Another objective is to position people to diversify or increase household income streams and improve asset loss recovery. Further, it sets out to bring disadvantaged and vulnerable sections of the society within the ambit of formalized and standardized services at an affordable cost. Finally, financial inclusion is a bold step toward inclusive economic development by hyping on the indicators of availability, awareness, affordability, adequacy, and accessibility.

3.4 Drivers of enabling policies

This section discusses issues, factors, and economic and demographic scenarios that have created the global pressure for financial inclusion.

3.4.1 What pushes nations to prioritize financial inclusion

A number of factors are responsible for the crave for financial inclusion, across jurisdictions, and they include, but not limited to:

• Globalization: Globalization refers to the shift toward a more integrated and interdependent world economy, along with the merging of distinct and separate national markets into one huge global marketplace. Globalization is real and some dare say, irreversible. Hitherto, recognized geographical boundaries are rapidly collapsing in meaning, relevance, and influence because more and more businesses are competing globally, leveraging technology. As we know it, sovereign control is diminishing faster than the speed of light. Harmonized trading and financial platforms have been, or are being, agreed upon and promoted by governments, regional blocks, and cross-border institutions. The derived effect of globalization is the enormous opportunities presented to internationally responsive nations, through the complex structures and systems of cross-border organizations and the multiple markets servicing them. The world has become a global village with no boundaries to constrain free economic interactions and communication, unprecedentedly, altering the way business with competition is conducted, in the global marketplace. All companies want to sell their goods to everyone, everywhere on the globe. Globalization has provided the impetus for the crave for financial inclusion and, hence the following provide the motivation for financial literacy initiatives:

• Need for inclusive economic growth and development;

• Enhance the effectiveness of monetary policy implementation [6];

• Dictates of national policy, dictated by cross-border affinities and leanings;

• The patriotic feeling of not being left behind, or isolated in the global market place;

• Growing global practice and need to take advantage of technological advancements in the delivery of financial services with decongested banking halls; and

• Nationalistic concerns for the survival and growth of micro, small and medium enterprises (MSMEs)

3.4.2 Challenges of financial inclusion/reasons for financial exclusion

Major reasons for financial exclusion are:

3.4.2.1 High cost of providing and utilizing financial services

This is a disincentive both to the service provider and service user. To the service provider, the cost of setting up of branches/access points may be considered unduly high and not advantageous in perceived low business areas. On the other hand, the poor and rural populations may be demotivated by high access costs on enabling infrastructure, minimum account balance requirements, transaction times, fixed charges on credit and debit cards, loan processing charges, fraud risks, etc. These inhibitions and made worse by high administrative costs, high collateral requirements, and lack of experience within financial intermediaries on the niceties of delivering appropriate services. Most micro, small, and medium enterprises (MSMEs), particularly persons financially excluded who may have their growth numbed.

3.4.2.2 Non price barriers

These barriers arise from stipulations requiring documents of proof regarding personal identity, which most people down the societal ladder generally do not have; thus, justifying their exclusion [7]. Both natural barriers, such as rough terrains and man-made barriers, such as hostile financial services delivery interfaces and limited bank branches or service access points, are factors contributing to financial exclusion. Globally, cost and infrastructure failures make accessing services demotivating.

3.4.3 Types of financial exclusion

From the discussions so far six types of financial exclusion can be established distinguishably, namely:

1. Physical access exclusion: Where exclusion is brought about when local bank branches or nonbank financial service provider offices are closed or demobilized (in response to internal pressures) and service seekers lack reliable, affordable means to reach alternatives.

2. Access exclusion: Provider’s risk evaluation of the current or potential user(s) necessitates access restrictions, resulting in such people being denied a product or service because they are perceived to be highly risky propositions.

3. Condition exclusion: Here, products or services are rendered inaccessible to those who cannot meet up with conditionalities attached to their offering.

4. Price exclusion: This is when products are availed at prices, which are unaffordable by the potential and willing up takers;

5. Marketing exclusion: Occurs, where sales and marketing activities are deliberately targeted at some groups, segments, or areas to the exclusion of others;

6. Self-exclusion: This is situation, where individuals exclude themselves from seeking and utilizing financial products and services for personal reasons, including fear of failure, fear of temptation, or lack of awareness. In certain climes, the pressure to keep a low profile to avoid being targeted by bandits, terrorists, kidnappers, etc. has promoted self-exclusion;

7. Absence of a market delivery model: Regulators and implementers (such as banks), are yet to resolve a single financial inclusion delivery model, which is most suitable, sustainable, and scalable, globally; so, invariably exclusion occurs anyway.

8. Dysfunctional financial infrastructure: The unpunctual functionality of the dispensing financial infrastructure curtails uptake, impacting scalability of initiatives [8].

9. Digital/physical connectivity: Regular connectivity failures and delays in resolving associated consumer complaints accentuate financial exclusion.

Studies have shown that, whereas financial inclusion positively and significantly impacts the operations and growth of entrepreneurship, challenges of distance impinge on how fast and effectively services are accessed in certain jurisdictions [9].

3.5 Pillars of financial inclusion

Financial inclusion assures easy access to financial services by creating equivalent opportunities, which enable the disadvantaged and vulnerable sections of the society, economically and socially excluded, to join together better into the financial system, able to appropriate financial products and services at an affordable cost in a fair and transparent manner. Such enrolment empowers them to actively contribute to national development and protect against socioeconomic shocks. Accordingly, financial inclusion advocacy must actualize deliberate efforts to stand on five ennobling pillars. These are:

Pillar 1: Physical and spatial dispersion of financial services access points to more rural areas and promote access;

Pillar 2: Improve number and functionality of disposing infrastructure;

Pillar 3: Digitize payments, as of primacy, across the country;

Pillar 4: Energize consumer protection framework with strong feedback and enforcement mechanisms; and.

Pillar 5: Uplift financial conditions and improve the standard of living of the poor and the disadvantaged, supported with a veritable accountability, monitoring and evaluation backbone.

Financial inclusion is a significant issue in most developing countries as most marginalized populations, especially women, lack access to essential financial services such as insurance and bank credit, largely due to their smaller size, informality, and concentration in heavily affected sectors. Women entrepreneurs across the globe, who are financially excluded face several constraints and fail due to a lack of access to affordable and quality financial products and services. But their exclusion is due to a number of factors, such as lack of traditional collateral, insufficient financial information, and prevalence of discriminatory property rights. It is noteworthy that women’s financial inclusion aids in combatting social marginalization, reducing poverty, and achieving entrepreneurial goals. Increasing women’s accessibility, affordability, and utilization of financial services will, therefore, go a long way toward reducing the gender gap in entrepreneurship, as well as promoting the women empowerment and gender equality and linked to enhanced entrepreneurial performance, success, and viability of women-led businesses [10]. Globally, financial inclusion plays a key role in addressing gender inequalities. In many nations, financial inclusion has been central to development policy-making and it has been documented that promoting financial inclusion has been instrumental in achieving the Vision 2030 Agenda for most developing African countries and in achieving the sustainable development goal (SDG) number five on gender equality and women empowerment.

3.6 Financial literacy to financial inclusion

An assessment of financial literacy programs points to the fact that a set of principles and good practices exist for prosecuting and improving financial learning and awareness, to promote financial inclusion. This includes, but not limited to:

1. Promotion of unbiased, fair, and coordinated financial education;

2. Early commencement of school-based financial training actively supported by all financial institutions to encourage accountability and responsibility;

3. Financial education should be clearly distinguished from commercial advertising and codes of conduct for the marketing staff of financial institutions should be developed to maintain this distinction;

4. Deliberate encouragement of clients of financial institutions to understand service information and their potential consequences of their taken up the service and the remedies available in case of service malfunction;

5. Literacy narrowly focuses on important life enhancing issues on which financial inclusion is hinged;

6. Programs be oriented toward “personalized” financial capacity building and empowerment on specific groups;

7. Future retirees should be targeted with literacy information, education, and communication that raises their awareness and capability;

8. Finally, literacy campaigns should include early warning systems on high-risk or vulnerable aspects issues of concern to service up takers (such as fraud).

4. Summary and conclusion

Financial inclusion requires that financial literacy activities direct specific population usually excluded from the official financial sector either because of their knowledge/awareness. However, distance to financial services access points and infrastructural deficiency could challenge how fast and effectively financial literacy initiatives scale up access to financial services by the poor and vulnerable populations, as well as micro, small, and medium-scale enterprises. National policies are motivated by the realization that several nonfinancial personal circumstances such as lack of education, inadequate technical skills, poor access to markets, lack of information, and unreliable infrastructure constrain individuals and businesses. These inhibiting factors are overcome by massive sustained financial literacy campaigns, leading to improved productivity, market access, and profitability. It avails needed knowledge for quality decision-making on the complexities of the world of finance. Ample practice and commitment are prerequisites for acquiring these skills, assured of a plethora of resources to help improve financial literacy. Accordingly, governments must initiate and sustain deliberate efforts to improve public infrastructure to promote financial inclusion, while financial sector regulators should evolve policies, which require financial services providers to spread to more areas, particularly the rural locations, where the poor and most excluded are found. This will overcome the identified challenges of distance, cost, and access and must follow a clear scalable roadmap expanding financial services access points to unbanked and underserved areas. The digitization of payments across the country should be prioritized, including a consumer complaints/protection framework, to increase financial inclusion in any given jurisdiction. It goes without saying that individuals and households must be availed the tools to cope with the increasingly complex world of financial instruments and offerings and assume more responsibility for their retirement security in the face of solvency-threatening pressures on public and private pensions.