8. The Transition from an Informal Financial Money Market to a Formal Financial System Through Digital Financial Inclusion

This chapter shows how digital financial inclusion is helping people make the transition from the informal financial market to the formal financial system. Specifically, the chapter focuses on how digital financial inclusion is assisting people in making the shift. The connection between digital finance and financial inclusion is based on the idea that a sizeable portion of the population that is excluded has access to a mobile phone, and that the delivery of financial services via mobile phones and other related digital devices is enhancing access to finance for people who were previously excluded, such as the underprivileged, women, and youth. This enables these individuals to move from an unregulated money market to a regulated financial market, which in turn allow them to transition from being financially excluded to being financially included.