Utilization of Social Media to Promote Financial Inclusion: Explorative Study

Abstract

Social media has emerged as a powerful tool for promoting financial inclusion, which is the ability of individuals and businesses to access financial services such as banking, insurance, and credit. Despite progress in recent years, significant gaps still exist, with a significant portion of the world's population remaining unbanked. This paper explores social media’s role in enhancing financial inclusion. The study seeks to understand the impact of social media on financial inclusion, the challenges and opportunities associated with using social media in promoting financial inclusion, and the strategies that can be employed to leverage social media for promoting financial inclusion. The research employs a descriptive qualitative approach, using secondary data from scientific articles, books, public opinions, and social evidence. The analysis focuses on answering the main research question: the role of social media in enhancing financial inclusion and how to leverage social media to promote financial inclusion effectively. The results show that social media can promote financial inclusion through awareness and education, accessibility, trust, and social capital. The study provides recommendations for policymakers, financial institutions, and other stakeholders on effectively using social media to enhance financial inclusion. Social media can enable peer-to-peer learning and financial education, provide low-cost and accessible financial services, and overcome social and cultural barriers to financial inclusion. This research contributes to the literature on social media and financial inclusion and highlights the importance of leveraging social media to promote financial inclusion.