Paper Contents
Abstract
Financial inclusion has emerged as a cornerstone of equitable economic development, aiming to extend access to formal financial services for all segments of society. This paper explores the role of financial inclusion in reducing income inequality using secondary data and literature evidence from global databases such as the World Banks Global Findex and World Development Indicators. The study is motivated by the growing recognition that inclusive financial systems can empower marginalized groups, promote entrepreneurship, and facilitate equitable resource distribution. Prior research indicates that higher levels of financial inclusionthrough increased access to bank accounts, digital payments, and credit facilitiesare associated with declines in income inequality and poverty levels, particularly in developing economies. However, the magnitude of this relationship varies across countries due to differences in institutional quality, financial literacy, and digital infrastructure. This paper aims to synthesize existing empirical findings and highlight how improved financial inclusion mechanisms contribute to narrowing income disparities. The analysis also identifies key policy measures, including digital finance expansion, financial literacy initiatives, and regulatory reforms, that can strengthen the inclusivity of financial systems and promote sustainable, broad-based economic growth.
Copyright
Copyright © 2025 neha. This is an open access article distributed under the Creative Commons Attribution License.
