What you need to know about financial inclusion.
Studies show that individuals offered a method of banking and financial services enables them to save, contribute, earn and distribute money to others, giving a sense of connectivity. Financial inclusion aims to include everybody in society by giving them basic financial services. These services do not look at race, individuals net worth nor do they consider the economically underprivileged.
Products such as loans, equity and insurance also play a bigger part in the general health of our economy. The concept of financial inclusion goes well beyond merely opening a bank account, it provides individuals the ability to be part of something bigger and contribute to the economic welfare of our global economy.
What are the benefits of financial inclusion and inclusive growth?
- Access to financial services opens doors for families, individuals and businesses.
- Giving people the ability to save allows them to focus on education and health
- Access to credit enables businesses to expand, create jobs and reduce inequality
“The country has seen the rise in financial inclusion is a reflection of the increase in financial activity. The financial activity alone in the United States has dramatically increased. The way, how and when individuals are paid is evolving”, states Ashish Bahl.
Why Financial Inclusion Matters.
Technology is helping financial institutions learn how and what services people need, even very vulnerable consumers. Emerging technologies are empowering financial institutions to go the extra mile and serve the “underserved” and “unbanked”. Giving people access to finance and doing this in a responsible manner protects and promotes growth for all. The increasing use of technology has provided innovative platforms the ability to address what people need, and allows businesses to make a profit while providing new services at a reasonable and affordable cost. Being “unbanked: is costly to the global economy and disproportionately affects all households, no matter the size. Financial Inclusion in short leads to many benefits and outcomes for individuals, business and the general economy. Financial independence contributes to education and better health and is
also linked to reducing inequality and promoting entrepreneurship. Let innovation live.