Behavioral finance and financial inclusion: A conceptual review and framework development

Nelly Tochi Nwosu 1, * and Oluwatosin Ilori 2

1 Independent Researcher, Chicago, IL, USA.
2 Independent Researcher, Irving, TX, US.
Review Article
World Journal of Advanced Research and Reviews, 2024, 22(03), 204–212
Article DOI: 10.30574/wjarr.2024.22.3.1726
Publication history: 
Received on 26 April 2024; revised on 04 June 2024; accepted on 06 June 2024
This review paper examines the intersection of behavioral finance and financial inclusion, offering a conceptual framework to address the behavioral barriers hindering access to formal financial services. Through an analysis of key behavioral factors—including risk perception, overconfidence, present bias, and social norms—and an evaluation of existing interventions, the paper highlights the complexities of financial decision-making and the challenges of expanding financial inclusion. The proposed framework outlines intervention strategies to promote positive financial behaviors and empower individuals to achieve greater financial well-being. By integrating behavioral insights into policy design and implementation, policymakers and practitioners can enhance the effectiveness of financial inclusion efforts, ultimately fostering economic empowerment and sustainable development.
Behavioral Finance; Financial Inclusion; Risk Perception; Overconfidence; Present Bias; Social Norms.
Full text article in PDF: 
Share this