A REVIEW ON THE RECENT TRENDS IN FINANCIAL INCLUSION: THE RESEARCH JOURNEY SO FAR

Purpose of the study: This paper tries to review the existing literature on financial inclusion and to discuss the various definitions of financial inclusion, its diverse dimensions comprehensively - demand side and supply side - and multiple explanatory variables (economic, demographic, behavioural, and social factors) to explain the level of financial inclusion. Methodology: From various databases and e-journals, the papers were retrieved on the topic of financial inclusion during the time span of the last 15 years (2005-2019). After reading the abstract of totally collected 140 research papers, the researchers have chosen 84 articles for the present study based on the relevance of the content to the topic under study. The collected information was classified as per the major themes. Main Findings: Much research has been conducted on the measurement and impact assessment of financial inclusion, But the studies on the explanatory variables are comparatively fewer. Among the various factors influencing the financial inclusion level, no much emphasis has been laid on the usage dimension; the key role of behavioural, psychological, and sociological factors on the financial inclusion level still remains unexplored. Applications of this study: This paper will be useful for theoretical researchers who prefer to explore the factors that influence the usage dimension of financial inclusion. The policymakers and practitioners in the area of financial inclusion will be able to improve the effectiveness of their policies and implementation strategies of financial inclusion. Novelty/Originality of this study: This review paper explores the juncture at which the current research on financial inclusion has arrived. It would serve as a starting point for further in-depth explorations in the various segments of financial inclusion. Also, the present study points out and suggest potential areas for further research in the field of financial inclusion