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The world has made considerable progress in financial inclusion and access to financial services have grown significantly. However, there are challenges in bridging the remaining gap mainly on account of last mile connectivity. There is a growing realisation that digital technology can play an effective role in plugging the remaining gaps. Analyse.

Topic: Inclusive growth and issues arising from it.

5. The world has made considerable progress in financial inclusion and access to financial services have grown significantly. However, there are challenges in bridging the remaining gap mainly on account of last mile connectivity. There is a growing realisation that digital technology can play an effective role in plugging the remaining gaps. Analyse. (250 words)

Difficulty level: Moderate

Reference: Live Mint

Why the question:

he latest edition of the Global Findex database, compiled from a survey of more than 125,000 adults in 123 economies, covering use of financial services throughout 2021. The survey found that 71% of adults in developing economies now have a formal financial account compared to 42% in the first edition a decade ago.

Key Demand of the question:

To write about the role digital technology can play in financial inclusion.

Directive word: 

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction: 

Begin by giving the current status of financial inclusion.

Body:

First, write about the various measures in the recent past taken to promote financial inclusion in the recent past.

Next, write about the shortcomings in the measures taken to promote financial inclusion.

Next, suggest measures as to how digital technology can play part overcome the above.

Conclusion:

Conclude with a way forward.