FINANCIAL INCLUSION IN DEVELOPING COUNTRIES. A REVIEW OF THE LITERATURE ON THE COSTS AND IMPLICATIONS

This article examines research reviews of financial inclusion comprehensively in terms of its nature, basic reasons behind financial exclusion, costs, and implications of financial exclusion in developing countries. Specifically, the study intends to analyze the extent to which the existing published academic papers have addressed the challenges associated with financial exclusion in these countries. A qualitative systematic literature review approach was employed in conducting this study. The study findings indicate that most developing countries and Tanzania in particular, still encounter challenges regarding effective financial inclusion, resulting in very slow improvement in this field. Therefore, measures are needed to curb existing bottlenecks, and the government and other stakeholders need to establish guiding policies to enhance financial inclusion efforts. Similarly, Policymakers and financial services providers need to initiate innovative infrastructure systems to enhance the extension of financial services to rural areas at affordable operating costs.