Voicelessness and exclusion: a systematic review of the (non)participation of low-income population in the design and governance of financial inclusion products and policies

In this systematic literature review, we hope to (re)draw the attention of financial inclusion (FI) stakeholders to the voicelessness or non-participation of low-income populations (LIPs) in the design and governance of micro-financial services (MFSs) and other FI products and policies. Despite the global popularity of MFSs among LIPs, our goal is to spur deeper dialogue on making these services more responsive to the specific needs and welfare constraints of targeted LIP groups. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, we conducted 26 keyword-based queries on the Web of Science Core Collection, retrieving 3,957 studies and selecting 46 relevant to participatory FI. Findings reveal limited academic/industry focus on LIPs’ involvement in FI design and governance. Asia had the highest research concentration, followed by Africa and the Americas; Europe was absent. Using six criteria (inclusiveness, popular control, considered judgement, transparency, efficiency, and transferability), a study on rural Nepal emerged as the most comprehensive participatory model. Formal microcredit dominated research interest. High costs appear to be the main barrier to scaling participatory approaches. The review also surfaces concerns about elite capture and the quality of LIPs’ participation—issues crucial for guiding future research, product development, and policymaking. Sustainable Development Goal (SDG - Goal 1) affirms that access to financial services can improve the well-being of low-income populations (LIPs), yet these communities often have little say in how such services are designed or governed. This study reviews literature on the (non)participation of LIPs in shaping micro-financial services (MFSs) and financial inclusion (FI) policies. Findings reveal that collaboration between LIPs and formal micro-financial service providers is rare, with research overlooking some MFSs and geographical locations. To the best of the authors’ knowledge, no government agency, regulatory body, or FI policy-making institution has publicly documented or widely disseminated any systematic or institutionalised effort to actively involve LIPs in the co-design or co-governance of FI policies. Although the Alliance for Financial Inclusion (AFI, 2018) emphasised the critical importance of participatory approaches to the effective implementation of FI policies across its 84 member countries, AFI (2022) acknowledges that LIPs remain largely excluded from both the design and governance of national financial inclusion strategies (NFIS). A key barrier to LIP participation is the high cost of engagement. This study also champions the social inclusion mandate of SDG (Goal 17) and calls on policymakers, financial institutions, and development agencies to work more closely with LIPs in designing and governing FI products/policies. Such collaboration is critical for meeting LIPs’ unique needs and for advancing micro-financial democracy.