Possible responses to financial exclusion in Albania in view of US and UK experiences

Abstract

The concept of financial exclusion has been a subject of increasing interest and debate. It is an increasingly important aspect of social exclusion, which is characterised as a situation where a proportion of the population, with common characteristics that share similar financial and social experiences, have limited access to mainstream financial services. This dissertation documents the nature, causes and consequences of financial exclusion in the UK and the US, which provide the basis of the literature review. It explores the policy measures undertaken by these two countries in addressing financial exclusion, where particular attention is given to the growth of credit unions, basic bank accounts, deregulation, and financial advice. Based on the effectiveness of these policies, different practical recommendations have been presented to increasing financial inclusion in a developing country, like Albania. In developing countries, where the extent of financial exclusion is determined by calculating the financially included, the objectives of providing wider and easier access to financial services, advisory financial information and the collaboration of the government with financial institutions can aid financial and economic development. Given the global importance of financial services in the social life, economic integration, and equal geographical development, every country has to consider tackling financial exclusion as a precondition for general economic growth.