Financial Inclusion: From Margins To Mainstream
Tuesday, December 9, 2014
Hundreds of millions of the world’s citizens today lack opportunities to join the financial services mainstream. Meanwhile, global financial institutions are missing out on a corresponding number of opportunities to refresh and grow their customer base, create prolific new markets, and develop sustainable demand for a new generation of products and services.
Given the huge scale of the opportunity, what’s holding banks back from greater involvement in under- and unbanked markets?
The basic obstacle is that mainstream banks will never be able to deliver tomorrow’s low-cost services (services the unbanked need most of all) using today’s high-cost business models. Research by Financial Exclusion experts suggest four key reasons for their historical lack of engagement: