Maren Duvendack|Philip Mader
Impact of financial inclusion in low? and middle?income countries: A systematic review of reviews
University of East Anglia|University of Sussex|Institute of Development Studies
campbell systematic reviewsvolume 15 issue 12 e1012 systematic reviewopen access impact financial inclusion low middleincome countries systematic review reviews maren duvendack corresponding author maren duvendack mduvendackueaacuk school international development university east anglia norwich nr4 7tj uk correspondence maren duvendack university east anglia school international development norwich research park norwich nr4 7tj uk email mduvendackueaacuk philip mader institute development studies library road university sussex brighton east sussex bn19re uk email pmaderidsacuksearch papers authorphilip mader corresponding author philip mader pmaderidsacuk institute development studies university sussex brighton east sussex bn19re uk correspondence maren duvendack university east anglia school international development norwich research park norwich nr4 7tj uk email mduvendackueaacuk philip mader institute development studies library road university sussex brighton east sussex bn19re uk email pmaderidsacuksearch papers author maren duvendack corresponding author maren duvendack mduvendackueaacuk school international development university east anglia norwich nr4 7tj uk correspondence maren duvendack university east anglia school international development norwich research park norwich nr4 7tj uk email mduvendackueaacuk philip mader institute development studies library road university sussex brighton east sussex bn19re uk email pmaderidsacuksearch papers authorphilip mader corresponding author philip mader pmaderidsacuk institute development studies university sussex brighton east sussex bn19re uk correspondence maren duvendack university east anglia school international development norwich research park norwich nr4 7tj uk email mduvendackueaacuk philip mader institute development studies library road university sussex brighton east sussex bn19re uk email pmaderidsacuksearch papers author first published 23 july 2019 httpsdoiorg104073csr20192citations 21 linked article 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services credit savings insurance money transfers allow poor lowincome households low middleincome countries enhance welfare grasp opportunities mitigate shocks ultimately escape poverty systematic review reviews assesses evidence economic social behavioural genderrelated outcomes financial inclusion aim review systematic review reviews systematically collects appraises existing metastudiesthat systematic reviews metaanalysesof impact financial inclusion authors first analyse strength methods used metastudies synthesize findings sufficient quality finally report implications policy programming practice research arising evidence eleven studies included analysis 13 main findings review 131 studies included review includes studies synthesise findings studies metastudies regarding impacts range financial inclusion interventions economic social gender behavioural outcomes total 32 metastudies identified 11 sufficient methodological quality included final analysis review examined metastudies 2010 onwards spanned globe terms geographical coverage impacts likely positive negative effects vary often mixed appear transformative scope scale largely occur early stages causal chain effects overall effects financial services core economic poverty indicators incomes assets spending health status social outcomes small inconsistent moreover evidence meaningful behaviourchange outcomes leading positive effects effects financial services womens empowerment appear generally positive depend upon programme features often peripheral unrelated financial service education rights cultural geographical context aspects empowerment considered accessing savings opportunities appears small much consistently positive effects poor people bears fewer downside risks clients credit large number metastudies included final analysis voiced concerns low quality primary evidence base formed basis syntheses raises concerns reliability overall findings metastudies 14 findings review mean systematic review reviews draws largestever evidence base financial inclusion impacts weak effects found warn unrealistic hype financial inclusion previously happened microcredit substantial evidence gaps notably studies sufficient duration measure higherlevel impacts take time materialise specific outcomes debt levels indebtedness patterns link macroeconomic development study first review reviews published campbell collaboration important limitations encountered working level systematisation recommended authors primary studies metastudies engage critically study quality ensure better detailed reporting concepts data methods methods guidance clearer reporting standards social science international development context would helpful 15 uptodate review review authors searched studies november 2017 updating elements searches january 2018 campbell systematic review published january 2019 2 executive summaryabstract 21 background financial inclusion presently one widely recognised areas activity international development financial inclusion initiatives built upon donors experience microfinance displaced superseded microfinance interventions recent years encompassing agenda financial services poverty alleviation development financial inclusion policymakers donors hope access financial services including credit savings insurance money transfers provided variety financial service providers microfinance institutions mfis subset allow poor lowincome households low middleincome countries enhance welfare grasp opportunities mitigate shocks ultimately escape poverty another hope increased access financial services advance macroeconomic development also expected benefit poorlowincome households recently donors suggested behavioural changes household spending decisions desired outcomes access financial services well unlike previous systematic reviews focused microfinance interventions subsets thereof explicitly adopt broader scope review available systematic review metaanalysis evidence financial inclusion whole field systematic reviews metaanalyses short metastudies sought clarify impacts financial inclusion poor people low middleincome countries based array different underlying studies include quantitative qualitative work based longterm shortterm data bulk metastudies focused microfinance many specifically microcredit different quality approaches metastudies studies underlying however pose major challenge policymakers programme managers practitioners assessing benefits drawbacks financebased approaches poverty alleviation increasingly confusion impacts risk cherry picking among different findings many metastudies taking account missing primary studies would affect understanding evidence example analysing reporting gendered impacts recently primary studies also sought understand impacts financial inclusion initiatives broadly systematic review evidence yet progressed far microfinance 22 objectives objective systematic review reviews systematically collect appraise existing metastudies financial inclusion impacts analyse strength methods used synthesise findings metastudies report implications policy programming practice research systematic reviews reviews undertaken sectors evidence widely available nonexistent international development systematic review reviews thus provides opportunity develop pilot evidence synthesis approach sector large body evidence variable quality systematic appraisal synthesis body systematic reviews metaanalyses lacking study critically engages approaches systematic reviews reviews view developing systematic review review methods aims answer following questions gain better clarity financial inclusion impacts impacts known existing metastudies social economic behavioural poverty impacts different types inclusive financial services eg credit savings insurance money transfers regardless provider poor lowincome people low middleincome countries includes poverty impacts macroeconomic development extent results financial inclusion known existing metastudies gendered impacts different types financial inclusion activity eg credit savings insurance money transfersin words evidence tell us gendered participation affects interventions effects whether ways financial services empower women low middleincome countries known existing metastudies reasons financial services uptake participant views financial services offer methodology including using gender equity lens methods standards metastudies used draw conclusions studies reviewed difference choice methods standards make results could methods standards improved order draw robust reliable conclusions via metastudies 23 search methods adopt multipronged search strategy explored seven bibliographic databases identify published literature plus wide range institutional websites published unpublished literature backreferencing recent systematic reviews ensure additional sources identified addition snowballing approach adopted advisory board plus leading authors working financial inclusion topics consulted ensure key studies missed also ran citation searches included systematic reviews metaanalyses google scholar scopus web science identify recent systematic reviews metaanalyses retrieved database searches restrictions placed language papers searches limited 2010 onwards 24 selection criteria adopted following selection criteria establish study inclusion exclusion 241 types reviews include studies selfidentify systematic reviews metaanalyses impacts financial inclusion including limited microfinance turn focused synthesising quantitative qualitative mixed methods evidence 242 types participants population population participants inclusive finance activities low middleincome countries 243 types interventions include metastudies address least one types intervention financial inclusion key intervention must fundamentally financial service directed poor lowincome people cases find interventions one subcategories microfinance credit savings insurance leasing andor money transfers however search strategy explicitly targets broader range inclusive finance activities including mobile monies mobile payments systems index insurance savings promotion 244 types outcome measures metastudies capturing wide range poverty indicators including income assets expenditure personal networks genderempowerment wellbeing health etc included metastudies screened two research assistants independently two review authors independently reviewing metastudy marked inclusion full texts obtained screened decision could made arbitration procedure place case disagreements 25 data collection analysis total 32 metastudies identified completing screening process however 11 assessed sufficient methodological quality included final analysis note large number metastudies voiced concerns low quality primary evidence base formed basis syntheses turn raises concerns reliability overall findings presented review level combining wide range low quality studies systematic reviews aggregate findings risky coding tool developed extract data included metastudies following areas interest 1 context 2 type intervention 3 type review design methods used 4 outcome measures 5 quality assessment 6 study results findings data extracted metastudy level however metastudies classified high mediumconfidence necessary also extracted information primary study level synthesis results guided theorybased mixed methods synthesis approach focus narrative synthesis incorporates quantitative elements appropriate 26 results five 11 medium highconfidence metastudies reviewed drew largely positive conclusions relationship financial services access changes poor people six drew largely mixed neutral unclear conclusions detailed review evidence base uncovered nuanced picture reflecting large variations across effects different interventions different people different contexts findings across reviews heterogeneous often inconsistent within across reviews many reviews find evidence expected presumed impacts present highlevel evidence suggest financial inclusion initiatives transformative effects average financial services may even meaningful net positive effect poor lowincome users although services positive effects people overall find impacts likely positive negative effects vary often mixed appear transformative scope scale largely occur early stages causal chain effects financial services core economic poverty indicators incomes assets spending small inconsistent effects financial services womens empowerment appear generally positive depend upon programme features often peripheral unrelated financial service instance exposure womens rights context aspects empowerment considered assessment confounded difficulty consistently conceptualising measuring empowerment effects credit financial services health status social outcomes appear small nonexistent evidence meaningful behaviourchange outcomes leading positive effects accessing savings opportunities appears small much consistently positive effects poor people bears fewer downside risks clients credit many primary studies included metastudies analysed depth medium even high risk bias due study design poor reporting methodology causes metastudies highlighted mainly higher risk bias studies drive positive impact estimates findings thus broadly confirm stainless steel law evidence rigorous lower risk bias studies become less likely find effects applies reviews underlying primary evidence reviewed given reviews classified lower methodological quality likely report positive effects must treat positive findings caution summary almost effect sizes find quite small hardly indicative transformative changes financial inclusion found dominantly lowerorder intermediate outcomes many effects strongly heterogeneous across studies time places populations gender ethnicity interventions suggests unreliable andor contextdependent positive findings tend repeat one context intervention type study another least many findings mixed inconclusive positive result positive results found financial inclusion fragile need treated caution exception appears regard savings immediate outcomes wider poverty measures affected positive relatively small way however base mainly findings one high confidence metaanalysis steinert et al 2018 savings revolution going savings least appear good harm 27 authors conclusions taken evolution financial inclusion impact literature toward natural conclusion higher level evidence systematisation provide overview become increasingly perplexing array metastudies offer partial overviews reviewing reviews drawn likely largestever evidence base financial inclusion impacts uncovered strengths gaps weaknesses existing highlevel evidence hope reduced amount confusion uncertainty arising many different metastudies financial inclusion published recent years least thanks systematic assessment variations quality within field perhaps boring truth seems emerge financial inclusion changing world average financial services may even meaningful net positive effect poor lowincome users although services positive effects people considering people financial services whether access use one among many possible determinants life chances socioeconomic wellbeing finding ought unexpected anticipate confirmed future research potential actual impacts financial inclusion need viewed comparable interventions graduation livelihoodsenhancement programmes note fortunately findings regarding impact chime emerging realism around microfinance including donor community recognising erstwhile claims transformative impact unrealistic hype microfinance particularly microcredit overblown welcome newfound realism wish encourage help review provide systematic overview evidence well areas doubt evidence base time wished going stages hype cycleenthusiasm inflated expectations disillusionmenthad necessary order arrive must warn see similar hype strong claims emerging around much encompassing notion financial inclusion promise marrying macrostructural economic improvements microstructural poverty relief found evidence wider claims made beneficence financial inclusion offering poor people better service broader macrostructural effects truer made microfinance large part due lack appropriate research metastudy level strongly caution repeating hype cycle time around idea financial inclusion time think crucial bear mind alternative financial inclusion nothing rather necessary uncover kinds interventions work best best deliver policy research spaceand ultimately poor lowincome people themselveswould benefit open clearsighted discussion many valid alternatives financial inclusion programming best gain necessary evidence inform discussion end review also includes brief examination impact evidence graduation livelihoods programmes terms evidence gaps noteworthy none metastudies reviewed high medium lowconfidence managed assess debt levels indebtedness patterns depth outcome financial inclusion cannot comment reasons lack attention paid issue except aware also blind spot underlying primary studies find glaring omission financial inclusion literature whole believe political economy research funding needs shift researchers enabled encouraged rigorously explore important potential downsides risks development initiatives like financial inclusion furthermore found evidence among high medium lowconfidence metastudies claim financial inclusion interventions lead macroeconomic development subsequent improvements lives poor may argument become prominent recent years also much attention given among high medium lowconfidence metastudies serviceamenitiesrelated programmes water credit sanitation loans loans micro solar systems especially notion green microfinance microfinance applied promote environmental sustainability moreover given majority financial inclusion effects found assessing high mediumconfidence studies early stages causal chain need studies better capture longterm effects demonstrate meaningful impacts especially final stages causal chain vast majority studies metastudies reviewed duration 13 years studies likelier find changes behaviours attitudes rather structural changes peoples poverty status safe assume latter result former design studies underlying metastudies reviewed conducive establishing whether shortterm immediate outcomes financial knowledge entrepreneurial propensity would translate intermediate outcomes savings accumulation microenterprise income especially distal transformative outcomes higher net worth higher incomes would suggest also reflects problem political economy development research combination funder restrictions favouring shorter timelines multiyear projects difficulty gaining longterm support implementer organisations discouraging appropriate designs also encountered important limitations working level systematisation including difficulties assessing reliability levels evidence underlying analysing effect sizes presented standardised indexed form often reveal little underlying measures used different ways data analysed findings presented across different types metastudies crude categories intervention outcome types lumping together highly diverse evidence base muddies waters another problem encountered metastudies reviewed regardless quality often built relatively weak underlying base underlying studies making findings fragile put differently combining wide range low quality studies systematic reviews aggregate findings risky perhaps analogous behaviour financial institutions runup 2008 financial crisis pooling dubious individual assets subprime mortgages loans triplea structured financial products seemingly better aggregate results going forward would recommend authors primary studies metastudies engage critically study quality ensure better detailed reporting concepts data methods used systematic review review level methods guidance especially terms synthesis approaches clearer reporting standards adapt cochrane healthfocused guidance social science international development context would helpful 3 background 31 problem condition issue financial inclusion presently one widely recognised areas activity international development 2017 globally 17 billion adults counted unbanked account financial institution mobile money provider 515 million adults worldwide opened account 2014 2017 demirgckunt klapper singer ansar hess 2018 p 24 adults may unbanked reasons including unaffordability inaccessibility financial services low quality choice financial inclusion refers efforts deliver affordable financial servicestransactions payments savings credit insuranceto people responsible sustainable way financial exclusion often blamed inequalities including access economic opportunities lack security exacerbated exposure risk carbo gardener molyneux 2005 p 57 expectation underlying financial inclusion greater access financial services create povertyalleviating empowering effects according united nations secretarygenerals special advocate inclusive finance development effect transforming lives unsgsa 2017 financial inclusion policymakers donors hope access financial services including credit savings insurance money transfers provided variety financial service providers mfis subset allow poor lowincome households low middleincome countrie