Financial Inclusion and the Rise of Non-Cash Payments: How the Banking Industry is Driving Economic Growth

Photo by Erik Mclean on Unsplash

The banking industry has seen significant growth in recent years as more and more people have been included in the financial system. This trend towards financial inclusion has been driven by a number of factors, including the increased availability of financial services, the proliferation of mobile phones and other technologies, and government efforts to promote financial inclusion.

One of the major benefits of this growth in financial inclusion is the shift towards non-cash payments. As more people begin using electronic payment methods, such as debit and credit cards, mobile banking apps, and e-wallets, the use of cash declines. This shift towards non-cash payments has a number of benefits, including increased efficiency and convenience for consumers, and reduced costs for banks and other financial institutions.

Another major benefit of the growth in financial inclusion is the increased tax receipts for governments. As more people enter the financial system and begin using non-cash payment methods, they become more visible to tax authorities and are more likely to pay taxes on their income and transactions. This increase in tax receipts can be used by governments to finance growth in infrastructure and improve the standard of living for their citizens.

Overall, the growth in financial inclusion and the shift towards non-cash payments is contributing to the growth of the economy. By making financial services more widely available and increasing the use of electronic payment methods, the banking industry is playing a vital role in driving economic development and improving the lives of people around the world.