Report: Improved financial inclusion could boost global bank revenues by US$200b
Monday, January 15, 2018
Banks could generate incremental global annual revenue of US$200b – equivalent to 20% of emerging market banks’ 2016 revenues – by better serving financially excluded individuals and small businesses in 60 emerging countries, according to the EY report Innovation in financial inclusion: revenue growth through innovative inclusion.
Driving greater financial inclusion – the availability of affordable, accessible and relevant financial products – will generate sizeable economic benefits, according to the report, boosting GDP by up to 14% in developing economies such as India, and 30% in frontier markets such as Kenya.
More than 40% of micro, small and medium enterprises (MSMEs) in the least developed countries reported challenges in obtaining financing, compared to 30% in middle-income countries and just 15% in high-income regions, as traditionally, banks operating in emerging markets (Ems) have not viewed financially excluded individuals and MSMEs as profitable target customer segments.
Photo courtesy of indicpeace.