IFC Invests in Postal Savings Bank of China to Promote Financial Inclusion for Underserved
The FINANCIAL — IFC, a member of the World Bank Group, on December 10 announced an investment in Postal Savings Bank of China (PSBC). The investment will help promote access to finance in a country, which according to World Bank Group data, is home to 12% of the world’s unbanked, some 235 million people, many of whom live in rural areas.
PSBC has the largest network of any Chinese commercial bank, with 40,000 outlets located in cities towns and villages throughout China, and is a pioneer in promoting financial inclusion. As well as committing to a $300 million investment, IFC will use its international experience to work with PSBC on rural, micro and digital finance to promote financial inclusion for the underserved, as well as sustainable finance, according to IFC.
IFC Regional Director for Asia Pacific, Vivek Pathak said “We believe this new partnership between IFC and PSBC will help facilitate access to finance for large segments of micro and small and medium enterprises and rural unbanked clients. Our institutions have an aligned mandate in driving financial inclusion and access in China and through PSBC’s extensive network as well as the introduction of new products and channels we can further advance this agenda.”
Since 1985, IFC has invested more than $10 billion in over 300 projects across a wide range of sectors in China, including with many financial institutions, significantly reducing poverty and improving millions of lives.