The Role Of Rural Saving And Credit Cooperatives In Enhancing Financial Inclusion A Case Of Biftu Batu Rural Saving And Credit Cooperative

Ethiopia has a very low rural banking density and a lowest financial inclusion standingrnas mainstream financial institutions are heavily tilted towards the urban centers withrngood physical infrastructure, and leaving the rural areas underserved. On the otherrnhand, with local ownership and control, RuSACCOs are considered as an ideal modelrnfor enhancing financial inclusion, and can help financially excluded segments who arernoften perceived as too risky by commercial banks and MFIs. Yet, the role of ruralrnfinancial cooperatives as financial inclusion model haven’t been well thought by thernregulatory institutions and other actors. With these premises, the study have exploredrnthe role of rural-based saving and credit cooperative society in improving financialrninclusion. Data required for the study were collected from both primary and secondaryrnsources. It was conducted on a single selected RuSACCO in Adami Tullu JiddornKombolcha district in Oromia region of Ethiopia. The cooperative society has generatedrnan opportunity for the excluded poor segments through creating financial access,rndelivering micro-credit, promoting savings, and financial literacy. This is of utmostrnimportance in order to upgrade RuSACCOs as a key actors in financial inclusion. Thernstudy calls for an improved enabling environment for pro-poor actors like financialrncooperatives (RuSACCOs) to improve financial inclusion.rnKeywords: Cooperative, Financial Inclusion, Financial Exclusion, FinancialrnServices, RuSACCO

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