One key ingredient of inclusive growth is a financial system that ensures access to financial services for poor households. Access to finance enables the poor to protect themselves against adverse shocks and smooth their consumption, and thus achieve higher well-being.

It also expands their human capital and productive opportunities, for example, by financing education or the purchase of tools and equipment. In short, financial inclusion can be a strong tool for empowering the poor, augmenting their earning potential, and improving their quality of life. As countries in developing Asia seek universal financial inclusion, there are policy areas we need to focus on: Creating an enabling environment for innovation in financial service delivery to increases access and lower costs of financial services. Implementing a proportional financial regulatory framework that advances synergies in financial inclusion, integrity, and stability. — Blogs.adb.org/blog