Broader Financial Inclusion: How to Get There?
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Broader Financial Inclusion: How to Get There?

By CIOReview | Thursday, June 10, 2021

Technological advancements have opened up new avenues for the banking system's future, and numerous companies are digitizing these circles to make them more available to a wider audience.

FREMONT, CA: According to a study, more than 2 billion adults are unable to access formal financial services.  The goal for the banking sector now is for adults all across the world to have access to a bank account or an electronic service to store money and send and receive payments. This is the driving force behind the rise of financial inclusion policies that increasingly rely on technology and the services of so-called technological finance (fintech). In addition, people and businesses are gradually taking the initial steps toward broader financial inclusion. As a result, they can safely use a wide range of adequate financial services, such as savings, payments, loans, and insurance.

The following are the keys to getting there:

Create A Unique and Appealing Consumer Experience

The aim is to keep things simple so that consumers do not feel like they are wasting their time. This is accomplished through the creation of simple and transparent financial inclusion services. The ‘saving circles,’ also known as ARAC in the United States, are one of the financial inclusion ‘systems’ that has profited from the use of technology. It is a popular alternative for folks who do not have access to a bank account. They can receive and give money to a group of people they know and trust through these. The premise behind this notion is that each member of the circle gives a monthly amount of money, and each month, a different person receives an overall sum. Technological advancements have opened up new avenues for the system's future, and numerous companies are digitizing these circles to make them more available to a wider audience.

Make Financial Products and Services More Social

Many clients desire to use their money socially. The rise in the number of Peer-to-Peer (P2P) funding sites is proof of this.

Commitment Between Financial Institutions and Their Customers

It should be a mutual commitment on both sides. To put it another way, banks must be able to converse with their consumers in addition to providing an appealing customer experience. More loyal ties with clients can be created in this way, allowing them to be involved in specific financial inclusion services.

Boost Access to Banking Resources and Enhance the Financial Health

Developing new product lines to assist consumers in improving their financial inclusion capabilities in novel ways to manage their savings better.

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