Financial Inclusion Crucial for Cohesive Irish Society, Experts Warn
As Ireland’s economy continues to recover from the devastating effects of the financial crisis, experts are sounding the alarm about the alarming levels of financial exclusion in the country.
The Alarming Reality of Financial Exclusion in Ireland
According to a recent study, Ireland has the lowest level of access to current accounts in Western Europe, with many citizens relying on moneylenders and facing crippling debt. This is not just a matter of having a bank account or credit card; it’s a fundamental right that allows individuals to lead normal lives.
The Definition of Financial Inclusion
“It’s about having access to basic banking services, affordable credit, and appropriate responses to overindebtedness,” said Dr. Georges Gloukoviezoff, author of the study. “Without these, people are left vulnerable to exploitation and financial ruin.”
A Framework for Financial Inclusion in Ireland
The study analyzed the responses to financial exclusion in the UK, France, and Belgium, finding that each country has its own unique challenges and successes. What’s clear is that there is no one-size-fits-all solution; each country must develop a framework that takes into account its specific economic and social context.
Guiding Principles for Financial Inclusion in Ireland
The study sets out guidelines for an appropriate framework to deal with financial exclusion in Ireland, including:
- Improving access to basic banking services
- Providing affordable credit options
- Developing more effective responses to overindebtedness
The Consequences of Financial Exclusion
The implications of financial exclusion are far-reaching, affecting not only individual households but also the broader economy. “When people are excluded from the financial system, they’re unable to participate fully in society,” said Dr. Gloukoviezoff. “This can lead to social and economic inequality, which can have devastating consequences for communities.”
The Need for Prioritization
As Ireland moves forward with its recovery efforts, it’s crucial that policymakers prioritize financial inclusion. By developing a framework that takes into account the unique needs of low and moderate-income individuals, the country can help build a more cohesive society and ensure that everyone has access to the financial services they need to thrive.
Conclusion
Financial inclusion is not just a moral imperative; it’s essential for building a strong and sustainable economy. By prioritizing financial inclusion, Ireland can create a more equitable and prosperous society for all its citizens.