Financial Inclusion: Specific Services for Particular Customers

9 November, 2017

Original source: IntelligentHQ

Financial services are a main tool for basic personal economic transactions. Even if we never think about this, they are present in our live style just as mobile phones or the internet. We are so stuck with them that it is hard to imagine a world with no financial services available at all. That would mean having to carry our cash in our pockets or paying a car without statements.

Those daily basics we are so used to and the knowing on how to use them are common in developed countries because of years of preparations and, more importantly, literacy. Since the moment we were born, we received information about banks and financial products. Our parents took care of getting us a life insurance, they opened a bank account to add some savings for our future and we see in every day transactions how physical money starts to vanish into credit cards or online payments.

Same services don’t work for everyone

So far, financial services are somehow included in our life, having reached a status where not having these kind of services mean a non-existence scenario. But this necessities that we have achieved are not the same all around the world and in other societies.

Bank accounts work for high developed societies where they are part itself of the citizen’s lifestyle. In those societies people not only use to them but actually take revenues from using them. In parts of the world where knowing how to use a bank account is completely different, bank accounts might have little to say to people, that is, if implemented in the same way.

We are here talking about a point where financial Inclusion faces the most challenge. Bank accounts that were designed as convenience tools for the middle classes just don’t really work for people on lower incomes in other geographical areas. The financial needs of this sector are obviously diverse. The fact is that in those areas, people needs tend to revolve around solving immediate problems rather than accumulating money.

In those parts of the globe, people lack resources and literacy about using financial services properly. These people in emerging countries are rarely trying to optimise interest returns or build credit history. They are often just trying to store money in a safe place where it can be instantly and securely accessed in case of urgent need.

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