Financial Exclusion and financial inclusion

1. Ms: heba hassan
+249906850429
Financial Exclusion

3. Financial Exclusion
financial exclusion can be defined as the
unavailability of banking services to people with
low or non income. It is believed to be one factor
preventing poor people leave out poverty.

4. The basic financial services mean:
 Deposit accounts
 Savings accounts.
 Money transfers.
 Financial consultancy services.
 The financing (credit).
 Insurance services.

5.  . The deposit account is the necessary condition
for obtaining the other financial services and
products.

6.  Another believe is that, the financial exclusion leads-
in the long run- to the social exclusion represented in
the exclusion from enjoying services affects the
quality of living standard such as education, health
and residence.

7. 2 financial exclusion forms
 Banking Exclusion
 Savings Exclusion:
 Credit exclusion
 Insurance exclusion:

8. Banking Exclusion
 It is the inability to access banking services. The
most prominent aspect is the inability to obtain a
deposit account (current account)

9. This is reflected in the following negative
aspects:
 money loss.

10. Inability to repay through checks.

11. Lack of access to financial transfers
(salary, pension and transfers to others)

12. Exclusion from loans and financing.

13. In terms of the depth
 The unbanked
 The partially banked
 The fully banked

14. 2-Savings Exclusion
 Lack of money for saving because of the income
low-standard.
 Unfamiliarity with putting savings in the banks.
 Lack of dealing with banks either because of bad
experiences or wrong pre-judgments towards
banks.

15. 3-Credit exclusion
 Credit or loans are important financial tools
facilitating the possibility of obtaining goods and
services that cost more than the available income
such as, furniture, cars, buildings, machines and
others.

16. The credit exclusion may cause
social exclusion in one of the
following forms:

17.  Inferiority and self-underestimation feeling in
comparison with other society's individuals

18.  Continuous failure to meet the family expenses
through the income sources then entering into over-
indebtedness as a result of resorting to non official
financing sources and it over-charging the cost of
funding leading its customers to indebtedness debt's
empty circle

19. In depth
 Credit excluded
 Inappropriately served
 Appropriately served:

20. Insurance exclusion:
 In the modern societies, some of insurance
services have to some extent become
compulsory such as cars and retirement
insurance while there are other optional services
such as health insurance

21.  So the degree and depth of the insurance
exclusion is determined by the existence and
expansion of the official sector in the society.

22. the dimension of the financial
exclusion
 The majority of the population does not obtain the
basic financial services offered by the official
main financial institutions.

23.  Only a few numbers of populations obtain the
basic financial services from the official financial
institutions under inappropriate terms or
unsuitable quantities (quantity and quality low
standard).

24.  The official financial sector institutions offering the
basic financial services to the minority are not
permanent

25. reasons of the financial
exclusion
 Supply side
 The private sector
 The nonexistence of official financial institutions
near the poor people in the rural areas

26.  In the cases where the poor have the chance to
reach the official financial institutions, they fail to
benefit from the services and products offered by
these institutions because it does not match the
requirements of the low income

27.  The States governments' failure to deliver the
financial service to the poor and the low-income
citizens either through its institutions

28. Demand side
 In the cases where the poor have the chance to
access the official financial institutions, they fail to
benefit from the services and products offered by
these institutions because it does not match the
requirements of the low-income customers'

29.  The States governments' failure to deliver the
financial service

30. Financial inclusion:

31.  It means all the arrangements and procedures
taken by the State to guarantee the society's
individuals the following

32.  access to the basic financial services offered by
the official financial system
 On the other hand, the access to this goal (Full
financial inclusion) leads to achieve what is
known as financial inclusiveness which became
the purpose all the world's societies seek.

33. financial inclusion indicators
 Financial depth indicator:
 Financial availability indicator
 Financial usage indicator