Financial inclusion has become a hot topic in recent years, with many IELTS Writing Task 2 questions focusing on the role of banking in achieving it. This theme has appeared in several past exams and is likely to continue being a popular subject for future tests. Let’s examine a relevant question that has been seen in recent IELTS exams:
Some people think that banks have a key role to play in achieving financial inclusion, while others believe that governments should take the lead. Discuss both these views and give your own opinion.
Let’s analyze this question and provide sample essays for different band scores to help you understand how to approach this topic effectively.
Question Analysis
This question is asking you to discuss two contrasting views on how to achieve financial inclusion:
- Banks playing a key role
- Governments taking the lead
You need to discuss both perspectives and then provide your own opinion on which approach you think is more effective. This is a classic example of an opinion essay where you need to present both sides of the argument before stating your position.
Sample Essay for Band 8-9
Financial inclusion, the provision of accessible financial services to all segments of society, is a critical goal for many nations. While some argue that banks should spearhead this initiative, others contend that governments ought to take the lead. This essay will explore both viewpoints before presenting my own perspective on this complex issue.
Those who believe banks should play a pivotal role in financial inclusion argue that these institutions possess the necessary expertise and infrastructure to reach underserved populations. Banks have the technology, financial products, and distribution networks required to extend services to remote areas and marginalized communities. Moreover, banks can innovate and tailor their offerings to meet the specific needs of different customer segments, such as microloans for small businesses or mobile banking solutions for rural populations. By leveraging their resources and know-how, banks can effectively bridge the gap between the financially excluded and the formal banking system.
On the other hand, proponents of government-led financial inclusion argue that only the state has the power and mandate to ensure universal access to financial services. Governments can implement policies and regulations that compel banks to serve all segments of society, including those that may not be immediately profitable. They can also invest in financial literacy programs, subsidize banking services for low-income individuals, and create a supportive regulatory environment that encourages innovation in financial services. Furthermore, governments can coordinate efforts across multiple stakeholders, including banks, fintech companies, and non-profit organizations, to create a comprehensive approach to financial inclusion.
In my opinion, the most effective approach to achieving financial inclusion involves a collaborative effort between banks and governments. While banks possess the operational capabilities and financial expertise, governments have the regulatory power and broader societal perspective needed to drive meaningful change. A partnership between these two entities can leverage their respective strengths to create a more inclusive financial system.
For instance, governments can set targets for financial inclusion and provide incentives for banks to reach underserved populations. Banks, in turn, can develop innovative products and leverage technology to meet these goals efficiently. This collaborative approach has proven successful in countries like India, where the government’s push for digital payments has significantly boosted financial inclusion.
In conclusion, while both banks and governments have important roles to play in achieving financial inclusion, a coordinated effort between the two is likely to yield the best results. By combining the strengths of the private and public sectors, nations can create a more inclusive financial ecosystem that benefits all members of society.
(Word count: 411)
Sample Essay for Band 6-7
Financial inclusion is important for many countries. Some people think banks should be the main ones to help with this, while others say the government should do it. I will talk about both ideas and give my opinion.
Banks can do a lot to help with financial inclusion. They have many branches and ATMs, so they can reach people in different places. Banks also know a lot about money and can make special accounts or loans for poor people. For example, they can make mobile banking apps that help people in villages use bank services easily. This can help more people have access to banking.
However, some people think the government should be in charge of financial inclusion. Governments can make laws that say banks must help all people, even if it’s not making money for the banks. They can also teach people about money and how to use banks. The government can give money to help poor people open bank accounts. They can also work with different companies to make sure everyone can use financial services.
I think both banks and the government need to work together for financial inclusion. Banks are good at providing services, but they might not help everyone if it’s not profitable. The government can make sure banks help all people, but they might not know the best way to do banking. If they work together, they can use their different strengths to help more people use financial services.
For example, the government can give banks rewards for helping poor people. Then banks can use their knowledge to make good services for these people. This has worked well in some countries where the government and banks worked together to help more people use digital payments.
In conclusion, I believe that banks and the government should both play important roles in financial inclusion. Working together, they can help more people have access to banking services, which is good for everyone in society.
(Word count: 323)
Sample Essay for Band 5-6
Financial inclusion is very important. Some people think banks should do it, but others say the government should. I will talk about both ideas and say what I think.
Banks can help with financial inclusion because they know about money. They have many places where people can go to use bank services. Banks can make special accounts for poor people. They can also make apps for phones so people can use banks easily. This helps more people use banks.
But some people think the government should do financial inclusion. The government can make rules that say banks must help all people. They can teach people about money and how to use banks. The government can also give money to help poor people start using banks. They can work with different companies to help everyone use banks.
I think both banks and the government should work together. Banks know how to do banking, but they might not help everyone if they don’t make money. The government can make sure banks help all people, but they might not know the best way to do banking. If they work together, they can help more people use banks.
For example, the government can help banks make digital payments easier. This can help more people use banks, even if they live far away from bank buildings.
To finish, I think banks and the government should both help with financial inclusion. If they work together, more people can use banks, which is good for everyone.
(Word count: 250)
Explanation of Band Scores
Band 8-9 Essay
This essay demonstrates excellent writing skills and a sophisticated approach to the topic:
- Clear and well-organized structure with a coherent argument
- Wide range of vocabulary used accurately (e.g., “spearhead,” “pivotal,” “marginalized”)
- Complex sentence structures with a variety of grammatical constructions
- Thorough discussion of both viewpoints with relevant examples
- Clear personal opinion with well-developed reasoning
- Effective use of cohesive devices and paragraphing
Band 6-7 Essay
This essay shows good writing skills but lacks some of the sophistication of the higher band:
- Clear overall structure, but ideas are less fully developed
- Good range of vocabulary with some less precise word choices
- Mix of simple and complex sentences, with some errors that don’t impede understanding
- Covers both viewpoints and gives an opinion, but with less depth
- Some use of cohesive devices, but less varied than the higher band essay
Band 5-6 Essay
This essay demonstrates basic writing skills but has several limitations:
- Simple structure with basic development of ideas
- Limited range of vocabulary, with some repetition
- Mostly simple sentences with some errors
- Covers the main points of the question but lacks depth
- Basic opinion given without much supporting explanation
- Limited use of cohesive devices
Key Vocabulary to Remember
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Financial inclusion (noun) – /faɪˈnænʃəl ɪnˈkluːʒən/ – The provision of affordable financial services to all individuals and businesses, regardless of their personal net worth or company size.
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Underserved (adjective) – /ʌndəˈsɜːvd/ – Not provided with adequate services or attention.
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Marginalized (adjective) – /ˈmɑːdʒɪnəlaɪzd/ – Treated as insignificant or peripheral.
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Infrastructure (noun) – /ˈɪnfrəstrʌktʃə/ – The basic physical and organizational structures and facilities needed for the operation of a society or enterprise.
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Innovative (adjective) – /ˈɪnəveɪtɪv/ – Featuring new methods; advanced and original.
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Microloans (noun) – /ˈmaɪkrəʊləʊnz/ – Very small loans given to impoverished borrowers who typically lack collateral or a verifiable credit history.
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Mandate (noun) – /ˈmændeɪt/ – An official order or commission to do something.
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Regulatory (adjective) – /ˈreɡjələtəri/ – Serving or intended to regulate something.
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Collaborative (adjective) – /kəˈlæbərətɪv/ – Produced by or involving two or more parties working together.
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Ecosystem (noun) – /ˈiːkəʊsɪstəm/ – A complex network or interconnected system.
In conclusion, the importance of financial inclusion cannot be overstated, and the role of banking in achieving it is a crucial topic for IELTS Writing Task 2. As you prepare for your exam, consider practicing with similar questions, such as:
- How can digital technology improve financial inclusion in developing countries?
- Should financial education be mandatory in schools to promote financial inclusion?
- What are the potential risks and benefits of increasing financial inclusion in society?
Remember to structure your essays clearly, use a range of vocabulary and grammatical structures, and support your arguments with relevant examples. Feel free to practice writing an essay on this topic and share it in the comments section for feedback and discussion. This active practice is an excellent way to improve your writing skills and prepare for the IELTS exam.