FINANCIAL INCLUSION: CONSUMER DIVERS AND BARRIERS

Abstract: Financial inclusion is crucial for economic growth in developing countries like Kenya, as it improves access to financial services for marginalized individuals and businesses. The advent of mobile technology, particularly platforms like M-Pesa, has revolutionized financial services, making transactions, savings, and credit more accessible. This encourages users to engage with formal financial systems, enhancing their economic conditions and enabling business growth. Social networks play a key role in influencing consumer behavior, as community adoption of financial services creates urgency for others to participate. The Kenyan government supports financial inclusion through policies like the National Financial Inclusion Strategy, which includes financial literacy programs and partnerships with the private sector. As financial literacy improves, consumers better understand the benefits of financial inclusion, leading to increased confidence in using these services. Many potential users of financial services lack trust in banks due to past experiences with corruption and inefficiency, leading them to seek informal alternatives. In Kenya, geographic challenges, especially in rural areas with limited banking infrastructure, further complicate access. While mobile money has improved accessibility, some still lack reliable internet or mobile connectivity. Cultural beliefs often favor informal savings groups over formal banks, and gender norms can restrict women's financial autonomy. Additionally, the costs associated with financial services, such as transaction fees, can deter low-income individuals from participating. The complexity of financial products can also create confusion, making clear information essential to encourage engagement. Keywords: Financial inclusion; Consumer Drivers, Consumer Barriers. Title: FINANCIAL INCLUSION: CONSUMER DIVERS AND BARRIERS Author: Oluoch Mariwa Francis, Dr. Fred Gichana International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 13, Issue 2, April 2025 - June 2025 Page No: 474-478 Research Publish Journals Website: www.researchpublish.com Published Date: 18-June-2025 DOI: https://doi.org/10.5281/zenodo.15687196 Paper Download Link (Source) https://www.researchpublish.com/papers/financial-inclusion-consumer-divers-and-barriers