What is Financial Inclusion

At its core, financial inclusion means that people and businesses can access the necessary financial tools and resources to help them get what they want and need in life - regardless of income or socioeconomic status. 

Accessing affordable, secure financial services like a bank account or line of credit can be pivotal to a person's livelihood, but that opportunity remains out of reach for many individuals around the world today. A single financial opportunity can be a critical step to establishing individual financial health and generational wealth - which can impact the trajectory of families and communities for generations. 

Exclusion from the financial ecosystem can happen for a variety of reasons. Obstacles can vary based on global geography, personal life stage and other factors – but some of the most common reasons include:

• Unbanked: individuals who do not have a traditional bank account due to lack of access, unemployment, inability to meet minimum balance requirements, or a lack of steady income

• Underbanked: people who have reduced access to mainstream financial services, may have alternative financial preferences such as Buy Now, Pay Later, may be a gig-worker or may have non-traditional employment

• Credit-recovering: those who may have filed bankruptcy, had credit accounts moved into collections, or who have undergone significant life events such as a divorce

• Credit Averse: individuals who lack trust in financial institutions, live in a country with limited government oversight or may experience financial security issues

Solving the challenge of financial inclusion requires an entire ecosystem to work together. Financial institutions, businesses, communities and policymakers must all collaborate, reevaluate traditional models and explore innovative solutions that bring greater inclusivity and access to credit.

One of the most crucial factors in driving financial inclusion is credit history. Being able to document records of debts and payments over time can help lenders assess loan risk. However, this can be challenging especially for those who are new to credit, new to a country or find themselves unbanked, underbanked, credit averse or credit recovering. Luckily, building a credit history can be achieved with some focus and time. 

Resources and educational materials to better understand important financial matters are available in the Equifax Knowledge Center. Some of the specific topic areas:

• Credit Scores

• Credit Reports

• Fraud & Identity Theft

• Debt Management

• Credit Cards

• Loans

Unique data and analytics from Equifax – including information such as verified income, telecommunication and utility payment history and cashflow insights – that may not be included in traditional credit reports, make a difference for millions of people worldwide. 

We understand the important role we play in the lives of consumers and are committed to enabling greater financial inclusion. Explore some of the important ways we’re enabling inclusive opportunities that move people forward in our Financial Inclusion Content Hub.