The effects of financial inclusion on fostering economic growth and wealth creation in Zambia: a case study of the National savings and credit bank (NSCB).
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Date
2022-09-30
Authors
Kalunga, Bwalya
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
A number of studies have suggested that access to financial services may allow the poor or
otherwise disadvantaged to invest in physical assets and education, reducing income inequality
and contributing towards economic growth (Burgess and Others, 2005). These studies have
proved that an increased access to various financial services for low income households can
undoubtedly allow these low income earners to improve their social and economic well-being
which can lead to both economic growth and financial development, (Morgan, 2014).
It is as a result of these studies that the research was aimed at focusing on establishing the
effects of financial inclusion on fostering economic growth and wealth creation in Zambia
with particular reference to the National Savings and Credit Bank (NSCB). The study
therefore attempted to establish if at all financial services offered by NSCB to the rural areas
of Zambia do have an effect on economic growth and wealth creation in these rural
communities of Zambia. The research further aimed at gathering data and analyzing the
already existing literature on financial inclusion in and outside Zambia. The NSCB
was selected due to its wide branch network of 36 branches spread across all the 10
provinces of Zambia of which 21 are based in the rural communities. The research
firstly concluded by establishing that NSCB financial products and services do
contribute towards economic growth and wealth creation through its support towards
education activities at household level through loans and savings products which are
offered in the rural communities it is servicing. Secondly, it was established that
NSCB products and services do have an effect at community level as they were
focused on supporting economic activities such as agriculture, micro, small and
medium enterprises which are a major driver towards economic growth and
development as highlighted in the literature cited. The study further recommended that
an improvement in customer service, financial sensitization or education of rural
communities, expansion of remote banking, introduction of tailor-made products, and
recapitalization of the bank as well infrastructure development in rural communities
can greatly contribute to promoting financial inclusion in Zambia.
Description
Thesis
Keywords
Financial services--Economic growth.