Purpose This article explores financial inclusion and the increase in formal account inactivity. It examines the formal account inactivity problem, how it delays the benefits of financial inclusion, the risks posed by formal account inactivity and solutions to reduce formal account inactivity. Design/methodology/approach The study used the conceptual discourse analysis method to explore the formal account inactivity problem and risks. Findings Countries with a high level of financial inclusion, in terms of formal account ownership, will reap the benefits that accompany financial inclusion, which include poverty reduction, stimulating entrepreneurship, increased financial security, reduced economic inequality, improved wellbeing and increased economic growth. However, these benefits may not be realized if there is an increasing number of inactive formal accounts. Originality/value This article contributes to the literature by examining the formal account inactivity problem, the risks and solutions to formal account inactivity.
Peterson K. Ozili (Sat,) studied this question.