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The impact of financial inclusion on social groups' economic divide is explored in this study, which introduces a critical realist theory underscoring the crucial role of financial literacy elements—behavior, attitude, knowledge, and skills—in promoting financial inclusivity. Initially framing a positivist explanatory theory inspired by Jaccard & Jaccoby's work and existing literature, the study then refines this into a critical realist causal theory using Sayer's established principles. This shift toward a critical realist approach allows for a more comprehensive and sophisticated theoretical evolution. By delving into fundamental causal mechanisms and considering the impact of social structures and context, the critical realist theory presented here offers a deeper comprehension of financial inclusion dynamics. This paper enriches theoretical understanding while proposing practical, evidence-based financial inclusion policies tailored to the distinctive challenges and opportunities within the Philippines. Consequently, it stands as a valuable roadmap for future research endeavors aimed at promoting fair financial access and economic empowerment in the country.