Bernard Osahon Odiase1
&
Anumene Elisha Cyril2
1Department of Business Administration, Faculty of Management Sciences,
University of Benin, Benin City, Edo State, Nigeria
2Department of Accounting Education,
School of Vocational and Technical Education (V.T.E),
Federal College of Education (Tech), Asaba, Delta State in Affiliation with
University of Benin, Benin City
osasben04@gmail.com || elishacyril63@gmail.com
Abstract
Financial inclusion has emerged as a critical driver of economic growth and development, particularly in fostering poverty reduction, employment generation, and financial stability. This conceptual paper explores the relationship between financial inclusion and economic development by synthesizing existing literature and applying Schumpeter‘s Theory of Economic Development and Endogenous Growth Theory. In order to identify patterns, discrepancies, and methodological gaps in the body of existing research, the study thoroughly examines peer-reviewed journal articles, policy reports, and empirical studies that were published between 2017 and 2025. The results show that by increasing access to financial services, improving financial literacy, and utilising digital financial technologies, financial inclusion considerably boosts economic development metrics. However, issues including sociocultural constraints, insufficient financial infrastructure, and legislative impediments still exist, especially in developing nations. Enhancing financial literacy initiatives, utilising digital financial services, fortifying regulatory frameworks, increasing access to reasonably priced loans, and encouraging public-private collaborations are some of the tactics the report suggests. These suggestions seek to guarantee sustainable economic growth and close gaps in financial accessibility. The paper also identifies key gaps in literature, calling for further research on the role of financial technology, gender-responsive financial policies, and impact assessment mechanisms. By addressing these challenges, financial inclusion can serve as a catalyst for inclusive economic growth.
Keywords: Financial Inclusion, Economic Growth, Digital Financial Services, Policy Frameworks, Sustainable Development.
