Can social inclusion policies promote financial inclusion?

This study aims to examine whether social inclusion policies promote financial inclusion. Three social inclusion policies were analyzed: gender equality policies, environmental sustainability policies and social protection (SP) policies.

The study used the panel fixed effect regression methodology to analyze data from 48 low- and medium-income countries.

The results show that social inclusion policies do not have a significant effect on financial inclusion. Also, the older population is less likely to own an account at a formal financial institution in low- and medium-income countries that have strong environmental sustainability policies and institutions. The implication of the finding is that the policies and institutions established to promote environmental sustainability can discourage the older population from keeping the population's wealth in formal financial institutions in the country.

Policy makers should consider how social and environmental policies and programs can be designed to promote financial inclusion for older individuals in the individuals' countries.

The financial inclusion literature has not considered the role of social inclusion policies in promoting financial inclusion for individuals, businesses and the excluded groups in a country.