Impact of financial inclusion on economic growth

الملخص

The research problem arises from individuals' reluctance to use financial services and products, and their reliance on informal entities for their financial transactions, This research aims to examine the impact of the relationship between financial inclusion and economic growth. Economic growth is the most powerful tool for poverty reduction, and rapid and sustainable growth is crucial for the rapid advancement of countries. With the recent widespread diffusion of digital technology, the use of electronic services has gained widespread acceptance among most segments of society. Financial inclusion has gained increasing importance locally and internationally due to its effective role in economic and financial development, and thus its role in achieving sustainable development. Many countries, both foreign and Arab, have achieved high rates of financial inclusion. The research defines financial inclusion as the timely, appropriate, dignified, and sustainable provision of formal financial services to the general public, especially the poor and financially marginalized. It also aims to enhance financial literacy among citizens and enable them to engage in the formal economy at affordable prices, thus enhancing economic growth. The research focuses on analyzing the relationship between increasing access to financial services, such as bank accounts, loans, and insurance, and improving economic growth rates by supporting small and medium-sized enterprises, encouraging savings and investment, and bridging gaps. The research also addresses challenges that hinder effective financial inclusion, such as weak infrastructure and awareness levels. It also discusses the role of financial technology in improving financial inclusion rates, especially in light of the trend toward digital transformation in the financial sector. The research concludes that enhancing financial inclusion leads to increased productivity and improved living standards. It recommends developing supportive policies to expand the scope of financial services and increase the percentage of those covered, which contributes to enhancing economic growth and financial stability.