Financial sector reform is an essential ingredient in the economic growth and development process. This is clearly underscored in the literatures linking financial sector growth with economic growth. The population was the 21 registered informal financial society’s group management staffs of the operating in Ondo state, the study adopted a survey method. The entire population of Questionnaire was administered to the population of the study but 184 questionnaires were dully returned. Data was analyzed using interferential and descriptive statistics. The inferential statistics involve regression and multiple regression analysis. In recognition of this fact, managers of the Nigerian economy have targeted the banking sector as a channel for implementing economic policy reforms and policy shift. On this note, government has identified the need for the development of informal sector One of such Sectoral strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of informal financial house in Nigeria. However, a well-functioning and regulated informal economy will be a critical prerequisite to sustainable growth. This is because the link between, informality and employment in Nigeria is not fully understood. The study therefore recommended that there is the need for the government to utilize Informal Financial Institutions in its poverty reduction programmes, since significant percentage of the Small and Medium scale Enterprises (SMEs) could assess credit for investment through them. This will go a long way in creating employment and promoting inclusive growth in the country and the credit creation process which operates via the multiplication of deposits can be boosted to the extent to that e-money replaces time deposits and the extent to which demand deposits are substitute for e-money for informal financial sector.