Impact of Financial Inclusion on Household Resilience in the United Kingdom
Abstract
This study investigated the impact of financial inclusion on household resilience in the United Kingdom through a comprehensive desktop review methodology. The research analyzed existing literature, policy documents, and datasets from authoritative sources to examine the relationship between access to financial services and households' ability to withstand economic shocks. The study found that while the UK maintained high levels of formal account ownership, significant disparities persisted in the depth and quality of financial inclusion across demographic groups. The research highlighted the critical role of financial literacy in mediating the relationship between financial inclusion and resilience, with findings indicating that mere access to financial services was insufficient to ensure household resilience. The study revealed that lower-income households and certain ethnic minorities remained particularly vulnerable to financial shocks, as evidenced during the COVID-19 pandemic. Furthermore, the research identified key mechanisms through which financial inclusion influenced household resilience, emphasizing the importance of not only access to appropriate financial products but also the effective use of these services, underpinned by financial knowledge and social support networks. The study concluded by recommending a multifaceted approach to enhancing financial inclusion and household resilience in the UK, including targeted financial education programs, the development of more inclusive financial products, and improved regulatory frameworks to monitor and evaluate the quality of financial inclusion initiatives.
Keywords: Financial Inclusion, Household Resilience & United Kingdom
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