Increasing access to credit is arguably the most powerful strategy any government can implement to drastically improve upon the social and economic status of individuals during the span of one generation. Financial Inclusion may be defined as “the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society.”1 The World Bank affirms that “…financial inclusion is a key enabler to reducing poverty and boosting prosperity.”2In March 2017, the Government of Jamaica articulated its National Financial Inclusion Strategy (NFIS), in support of Vision 2030-National Development Plan.
A fundamental problem faced by most businesses and individuals is that the resources available at the earlier stages of the life cycle is inadequate to support the level of consumption required to generate the additional resources in the later stages. This problem is solved by financial intermediaries who take funds from individuals and businesses with excess resources and on-lend to consumers who have inadequate resources.
Accordingly, the incidence of financial intermediation is the hallmark of economic and social progress in any economy. The primary objective of the study is to inform the National Financial Inclusion Strategy by assessing the nature and scope of competition in the moneylender market.