**2. Social inclusion and financial inclusion**

Social inclusion has been examined by various scholars, including sociologists, historians, economists, psychologists, and natural scientists. Sociology provides a valuable orientation from which to consider social inclusion, because it illuminates how social integration maintains and manages the ways in which people move about and through their socially stratified worlds [3].

On the other hand, financial exclusion is a small but significant component of social exclusion. The latter has been explained as having two broad components, namely economic or structural exclusion (distributional dimension) and social–cultural (relational dimension) [3]. Economic or structural exclusion (distributional dimension) consists of material deprivation and inadequate access to government as well as semi-government provisions ("social rights"). Here the term "Material deprivation" is used to refer to deficiencies in relation to basic needs and material goods, "lifestyle deprivation," problematic debts, and payment arrears. The lack of access to public services demonstrates itself in longer waiting times coupled with financial obstacles

*Role of Mobile Money and Digital Payments in Financial Inclusion for Sustainable Development… DOI: http://dx.doi.org/10.5772/intechopen.105858*

to socioeconomic services. The socioeconomic services include but are not limited to banking services, credit, health services, household finance especially helping with household debt acquisition and management; investment advisory services, business development services, business incubation services as well as business mentoring.

Relatedly, the lack of social-cultural inclusion refers to inadequate integration both socially and culturally. Inadequate integration socially connotes failure to participate in the social functioning of a community (including the absence of social support systems). On the other hand, the lack of integration from a cultural perspective means failure to comply with a community's institutions. These institutions represent the rules that govern expected work ethics, social conduct, adherence to the social security system, behaving in socially acceptable ways as well as full participation in the functioning of one's community.

By and large, social inclusion is the process through which all members of society have equitable access to opportunities. Social inclusion policies and institutions seek to promote meaningful participation in society's development by all members by eliminating the barriers that prevent them from full participation. Inhibitors that affect the rate of social inclusion include but are not limited to: diverse interpretation of social inclusion, lack of funds to finance social enterprises development, lack of community enterprises, and a weak social inclusion model [4].

Similarly, financial inclusion is the ability of hitherto excluded individuals as well as firms to access financial products that are appropriate for their needs at an affordable cost. Individuals and firms who are financially excluded cannot smooth their incomes and expenditures, cannot grow their businesses because they cannot access finance that is outside of the firm, and are financially insecure due to failure to accumulate savings. Specifically, improved financial inclusion facilitates the integration of unbanked individuals and firms into the financial ecosystem through the provision of diverse financial services, investment advisory services as well as investment vehicles [5].

Well-functioning financial systems serve a vital purpose by offering savings, payment, credit, and risk management services and thereby contribute to inclusive economic development. Inclusive financial systems are those with a high share of individuals, households as well as enterprises, which have an access to and use services of a financial nature [6]. Financial systems that are well functioning enable firms and individuals to access resources that in turn enable them to meet their needs of a financial nature. These financial needs include but are not limited to the accumulation of retirement savings, human capital accumulation through investment in education, re-tooling and mentoring, insurance against catastrophic expenditures associated with the consumption of medical services, taking advantage of available investment opportunities, and being able to cope with unexpected disruptions. The failure to use the highlighted financial services, in part, leads to rising income inequality coupled with economic growth, which is not inclusive and which leads to rising unemployment.

Social inclusion and financial inclusion are two major development policy agenda in many countries. Financial inclusion is a crucial driver of economic development, and many countries are implementing ambitious strategies to increase their populations' use of financial services, especially digital financial services [7].
