Introduction

This book is about financial inclusion. This has been an explicit part of the social policy agenda since at least the 1990s. Even though some of the language around financial inclusion has gone in and out of fashion since then, the themes that underpin it have been an important part of social policy across many countries. Financial inclusion has been bound up with theoretical controversies or debates over financialisation. It has also led to policy developments within banking, insurance, savings and credit. Financial inclusion is an international agenda. It is an important part of the work of international organisations such as the World Bank and can be detected in national policy agendas. This book has paid particular attention to debates in the UK. A key reason for this is that the UK has been at the forefront of financialisation. Davis and Walsh (2017: 28) state that the ‘UK was one of the earliest adopters of financialization and has one of the most financialized economies in the world’. The importance of financial inclusion is likely to grow rather than diminish in the future. Developments in financial technology and a move to a cashless economy may signal new topics for financial inclusion.

This section provides a brief summary of the argument of the book so far. Chapter 1 introduced the idea that there are two literatures that are largely developing in parallel to each other. One literature, much of it based on academic writing, is critical of financial inclusion and sees its aim as hollowing out the welfare state. A much more supportive position can be found in the policy literature and focuses on ways that boosting financial inclusion can reduce the costs faced by vulnerable groups of being excluded from financial services. Chapter 1 claimed that research would be enhanced if there is greater mixing of these literatures. Chapter 1 also suggested that it is possible to separate financialisation from neoliberalism. This is relevant because it opens up the possibility of shaping financial inclusion in different directions.

Chapter 2 argued that financial capability and financial inclusion are complementary.