Financial inclusion has gained growing attention in development circles. Policymakers and central bankers from around the world gather in forums such as the Alliance for Financial Inclusion (AFI) and the G-20’s Global Partnership for Financial Inclusion to discuss how to build more financially inclusive economic systems. Meanwhile, the microfinance industry is re-examining its role. Participants in the industry recognize the importance of moving beyond credit to an evolved vision of financial inclusion that promotes access to a range of services. At the same time, developments in Andhra Pradesh and other industry hot spots prompt the industry to revisit its purpose and methods.

The Center for Financial Inclusion defines financial inclusion as a state in which all people who can use them have access to a full suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the clients. It adds that these services are provided by a range of institutions, mostly private. And, reflecting the results of this survey, it hereby expands its definition to note that full inclusion requires the clients of these services to be financially literate. Such a definition may seem fairly obvious and noncontroversial, but the CFI emphasizes the definition because the term “financial inclusion” is often used to refer to specific pieces of the puzzle as if they were synonymous with the whole. The survey asks respondents to envision what we might wish to see if full inclusion was achieved in this decade. That vision rests on five pillars: 1) a full product suite, 2) provided with quality, 3) reaching all who can use the services, 4) in a diverse, competitive marketplace, 5) to an informed clientele. If one keeps all five pillars in mind as the end goal, it may be easier to see that success in one area, such as rapid expansion of a product, may only produce the social and economic benefits desired if accompanied by progress in the other areas.