The effectiveness of selected financial inclusion strategies: Evidence a developing country

The global, regional and national level policy makers are increasingly embracing financial inclusion as an important priority for fostering economic and social development. Likewise, policy makers in Zimbabwe have identified financial inclusion as a pillar of re-invigorating the struggling economy. This realisation has culminated in the formulation of various strategies aimed at promoting financial inclusion. However, the effectiveness of these strategies is not well known, knowledge about the adopted strategies is needed so that informed policies can be crafted. Against this backdrop, a quantitative study was designed to establish the effectiveness of financial inclusion strategies which include National Micro finance Policy, Post Office Savings Bank loans, mobile financial services, Agency Banking, Shared Infrastructure Network, Insurance policy provisions. Using data from 118 Micro, Small to Medium enterprises owners/managers operating in Mashonaland East, the results show that National Micro finance Policy, Post Office Savings Bank loans, mobile financial services have statistically significant and positive effects on financial inclusion. The other three strategies: Agency Banking, Shared Infrastructure Network, and Insurance provisions showed a negative effect on financial inclusion. &nbsp

The Effectiveness of Selected Financial Inclusion Strategies: Evidence a Developing Country

Objectives: The study sought to establish the effectiveness of financial inclusion strategies namely National Micro finance Policy, Post Office Savings Bank loans, mobile financial services, Agency Banking, Shared Infrastructure Network, Insurance policy provisions. The study builds on previous work that has identified financial inclusion strategies but have not established their effectiveness. A Hypothetico-deductive approach was used to survey randomly selected 118 Micro, Small to Medium enterprises owners/managers in Zimbabwe. National Micro finance Policy, Post Office Savings Bank loans, mobile financial services have statistically significant effects on financial inclusion. Agency Banking, Shared Infrastructure Network, and Insurance provisions exhibited negative effects on financial inclusion. The results of the study provide inform financial services sector managers, policy makers as well as academics that National Micro finance Policy, Post Office Savings Bank loans, mobile financial services are statistically significant factors that influence financial inclusion. The results help them to effectively implement the strategies to ensure increased levels of financial inclusion. The majority of studies have only established financial inclusion strategies but have not gone further to establish the effectiveness of such strategies. The current study closed the gap by identifying the impact of each strategy