A Conceptual Framework of Financial Inclusion: The Links with Individuals, SMEs, and Banks

Abstract

This chapter presents the conceptualframework of financial inclusion with linking to individuals, SMEs, and banks as these entities considering as demand and supply sides of financial inclusion. This paper address the definition and main factors of financial inclusion. Also, the importance and influence of financial inclusion in economic development and sustainability. Furthermore, how enhancing financial inclusion could influence people life and SMEs business, through access and using the formal financial services. Beside individuals and SMEs, this study drowns how banks -as supply side- could develop their business and positively enhancing their performances. The recommendations focusing on formal institutions to develop the laws and enhancing the infrastructure, alsomotivating the financial services providers to develop more services according to people needing.