Role of Financial Services in Economic Development: A Quantitative Investigation

Abstract

Globally, there is a diversity of perspectives on financial inclusivity. Because the demand for financial services differs from person to person as well as nation to nation. However, the vast bulk of scientists as well as intellectuals believe that 'financial inclusion is the widespread accessibility of all financial services to all underprivileged individuals at an economical pricing, predictive capacity, as well as sufficient dosage, as well as which should also be obtainable in appropriate procedures'; as well as 'financial inclusion includes the easy access of all individuals to the minimal level basic financial services'. The study's key components are the determinants as well as consequences of financial inclusiveness. The modern socioeconomic development ideology is based on widespread significant exposure to financial services, primarily for two reasons: (i)a large conceptual framework as well as literature review demonstrating the significance of a strong banking sector to support economic growth as well as poverty amelioration; as well as (ii)access to financial services, which can be viewed as a public good empowering involvement in the perks of a modern, market-based economy, in a comparable manner as is the case with education. As a result, financial inclusion/exclusion is seen as critical in terms of building a theoretical foundation as well as recognizing the fundamental reasons that contribute to a low degree of access to the financial sector. Sample of 271 people working in different financial services were considered to take participate in the survey of present study to know the role and significance of financial services in economic development. It is found that there is a significant role of financial services in economic development.