Inclusive finance, financial literacy and livelihood activities of households in Ghana

Abstract

Financial inclusion has become a priority for policymakers and the banking sector for promoting financial sector development and ensuring sustainable long-term economic growth. The goal of financial inclusion is to provide affordable financial services to all sections of society to improve their standard of living. This is an integral part of inclusive growth as it not only assures financial sector development but also spreads affordable financial services for the betterment of all members of society. Financial intermediaries channel funds from savers to borrowers and by so doing provide funds for investment. Helms (2006) and Choudhury (2015) suggest that financial inclusion is a livelihood intervention strategy that can halt the cycle of poverty and improve welfare among the vulnerable and lower-income populations in developing countries.