Financial Inclusion

The Canadian politician Dave Barrett once said, “Inclusive design is really just better design”. India’s political class has coded this reality into its law, with such leaders accepting that financial inclusion is a key determinant of not just equality but overall economic growth. The microfinance movement that started in the 1970s with the specific goal of providing access to credit has now evolved into an overall belief that everyone has the right to a bank account.Numerous studies conducted at the Center for Microfinance strive to pinpoint the specific aspects of financial inclusion that increase the overall standard of living. For example, a recent study found that access to a formal banking system was correlated with an almost 50% increase in overall savings rate in a Mumbai slum. CMF is involved in many such impact evaluations in line with its goal of informing sensible policy-making.