High or rising income inequality characterizes many countries. A significant majority of households in developing countries—more than 75 percent of the population—are living in societies where income is more unequally distribut- ed than it was in the 1990s.
Financial inclusion can support overall inclusive growth and the achievement of broader development goals. It is a key enabler to achieving a number of SDGs and can support efforts to reduce poverty, end hunger, ensure healthy lives, achieve gender equality, and promote entrepreneurship; small and medium enterprises; and inclusive growth. There is also evidence that increased financial inclusion can promote pro-poor growth and reduce inequalities. This can work, for example, by disproportionately relaxing the credit limitations on poor people who do not have collater- al or credit history or by ensuring that women can open an account without seeking permission of their husband or father.