Explain the factors that affects the lack of financial access of the poor people
Due to their low-paying jobs, the poor typically have limited financing facilities. Due to their
low income, they are unable to obtain commercial financial services from financial institutions or
other sources of funding that may aid in their financial literacy. Additional argument why people
with low incomes haven't invested in enterprises is because they utilize their money to pay their
bills and have nothing more to spare. I may also state that the government and groups have a
significant influence on how impoverished individuals lack credit intermediation.
Explain why the level of supply and demand of financial services act as a barrier to financial
access
The availability, demand, and price of a financial access are related in accordance with the law of
supply and demand. In the financial markets, supply and demand decide how much stocks and
other assets are worth. Corporate performance, interest rates, and economic data all have an
impact on stock demand. Some people didn't ask for financial services that may help them
become financially literate, while others looked for institutions to assist them become financially
successful.
What is the role of the government in the lack of financial access? Explain
the government's primarily formalized involvement in influencing the financial market system.
With the potential for economic development and poverty reduction that financial inclusion
offers, governments are increasingly adopting it as a policy objective. However, there are three
major obstacles to overcome: supply-side obstacles, demand-side obstacles, and shoddy
regulatory frameworks. Moving social benefits, salaries, and pension payments through
electronic channels and ensuring that these channels are connected to broadly available, basic
transaction accounts might assist the government in playing a crucial role in promoting savings
and boosting volumes. The government has a long history of overseeing infrastructure, including
non-financial infrastructure, assuring its functionality, and making sure that financial institutions
don't intentionally weaken consumer protection by making money off of it.
