Communication Strategies, Financial Literacy and Financial Inclusion: A Critical Literature Review

Abstract

There is widespread acknowledgement of the significance of financial inclusion as a prerequisite for economic growth, poverty reduction and social cohesion. Accordingly, financial institutions led by their respective central banks have embraced communication
strategies to inspire financial product diffusion, but significant portions of people remain with no relationship with financial institutions. Underpinned by the communication theory, expectancy theory and theory of empowerment, this literature review critically
assessed the linkages between communication strategies and financial inclusion and how that relationship is moderated by financial literacy. This literature review highlights the research gaps that currently exist and raises specific questions for future research. The study used a theoretical and an empirical review analysis. Search engines, research databases and Mendeley Reference Manager tools were used in the study. Relevant e-journal articles, books, and publications for the period 2000- 2020 were reviewed to answer the research objectives. The study shows that literature on the effect of communication strategies on product adoption or achievement of the intended results gives mixed results. Specifically, no study has focused on how communication strategies used by financial institutions affect financial inclusion. Also, there is no empirical evidence on the moderating effect of financial literacy on that relationship between communication strategies and financial institutions. Evidently, there are conceptual gaps in the extant literature reviewed. It is anticipated that the paper’s conjectures will direct empirical efforts to address the knowledge gaps.