Published on October 1, 2015

Financial capability for well-being: An alternative perspective from the capability approach


This report examines the concepts of financial literacy and capability as they are used in developing countries. Financial inclusion is about increasing the set of financial service options available so as to enhance the value of finance. The concept of financial capability seeks to capture the idea that their effective use will lead to improved wellbeing.

This report will present Sen’s capability approach and argue in favour of a well-being perspective on financial capability and inclusion. Additionally, the report considers how this capability-based approach to financial inclusion is in line with a broader perspective on financial decisions and money management evident in research of economic
anthropology and sociology.

You might also like

Understanding the banking sector: Strengthening information and analysis in Kenya

Struggling to thrive: How Kenya’s low-income families (try to) pay for healthcare

What do low-income people know about money? Indigenous financial concepts and practices and their implications for financial inclusion

Banking – SME codes of conduct

Kenya Financial Diaries: Executive summary

Financing SME growth in Kenya