Impact of Financial Inclusion on Risk and Performance of Conventional and Islamic Banks in Pakistan

Abstract

Financial inclusion is defined as the availability and equality of opportunities to access the financial services. Infact financial inclusion efforts typically target those who are unbanked and underbanked that directs the sustainable financial services. In 2018 it was estimated that about 1.7 billion adults lacked a bank account. Among those who are unbanked a significant number were women and poor people in rural areas and often those who are excluded from financial institutions face discrimination and belong to vulnerable or marginalized populations. The term financial inclusion has gained the importance since the early 2000s and as a result of identifying financial exclusion has direct correlation to poverty according to the world bank.