The Role of Financial Inclusion in Reducing Migrant Workers Financial Strain

Abstract

Financial inclusion has an important part in alleviating financial stress skilled by migrant workers by providing them with affordable, accessible, and reliable financial services, (Bonnefond, 2014). Migrant workers face challenges like lack of savings mechanisms, high remittance fees, and limited access to credit and insurance, (Wellalage, and Locke, 2020). Financial inclusion initiatives, such as microfinance, mobile banking, and tailored financial products, empower workers to manage their earnings more effectively, send remittances securely, and plan for their futures, (Dahiya, 2020). High remittance costs, and insufficient economic literacy leave migrant workers vulnerable to economic instability, (Nsiah, and Tweneboah, 2023). Initiatives such as mobile money platforms, inclusive banking policies and microfinance programs have shown promising results in reducing financial strain. Strengthening these efforts can lead to greater economic stability and social equity for migrant workers globally. Correlation analysis and mediation analysis adopted for this study to find the results. The findings of this study reveals access to formal banking facilities will help to reducing migrant labourer’s financial strain.