Financial inclusion is an attempt to bring financial services to the vulnerable and disadvantaged members of the society. Efforts to include them in the provision of financial services lead to the emergence of risks. What are these risks and how can they be managed? I will appreciate your thoughts on this subject plus any reference materials.
Thank you.
Dear Emmanual Abolo.
I found a few resources that I believe can provide answers to some of your questions.
Regards.
https://www.ftc.gov/sites/default/files/documents/public_comments/ftc-host-workshop-mobile-payments-and-their-impact-consumers-project-no.124808-561018-00012%C2%A0/561018-00012-82712.pdf
https://www.jrf.org.uk/sites/default/files/jrf/migrated/files/2234.pdf
http://g20.org/English/Documents/PastPresidency/201512/P020151228319674106996.pdf
http://positiveplanetchina.org/wp-content/uploads/2015/05/Emerging-Risks-on-Chinas-Path-towards-Financial-Inclusion-2013.pdf
http://www.bis.org/publ/qtrpdf/r_qt1503h.htm
http://rockpa.org/document.doc?id=258
Dear Mohd,
You are great and thank you for your kind generosity. Your articles are quite helpful and rich. Thank you. Regards.
Dr Abolo
Dear Sir,
Financial Inclusion is among important means to achieve end, i.e., inclusive growth. It has potential to help rural population of India to become independent of the vicious debt cycle. Truly speaking, If Financial inclusion is taken just as a potential business prospect to tap untapped and unreached market to improve and to enhance bottom line and wealth,then the real spirit behind the concept will be lost.So a lot of efforts must be made by the policy makers to check that it should not be used as an opportunity to gain PROFITS. Moreover,Financial Inclusion should never be seen in isolation.
Financial Inclusion is very important aspect for now. It is right to say there are some risks involved but it depends entirely on the methodology of the intervention itself. Like in India and Bangladesh Financial Inclusion programs have been very successful due to its structure where community members became trained and they run they run these financial services on their own with the support of Banks/ NBFCs.
Community driven institution has to come forward for running these services at the ground level. Through this a lot of financial and social type of risks can be eliminated from the value chain. Peer pressure works well and delivery of services become smoother.
Dear Emmanual Abolo.
Attached you will find a paper about financial inclusion and financial stability. I hope it help.
Best
Dear Emmanual Abolo,
I hope the following video presentation will prove helpful
https://www.youtube.com/embed/DyMsAdhEkl4
Regards
Dear Emmanuel Abolo
I am not in a position to comment on the risks associated in Financial Inclusion but I would like to make a point about the policy of financial inclusion.
Financial Inclusion - in majority of the countries - is being looked at as the individuals having access to banks and financial institution are financially included. The criteria used is Whether they have a bank account? Does this really serve the purpose?
Financial inclusion should essentially result in all members of the society having enough and surplus disposable income that they can utilize to avail banking and other financial services. Hence, the importance should be on creating employment and income generating opportunities for people. Once they are having income - especially surplus income - automatically people will access financial services even without any special efforts.
This is my personal opinion.
Regards
Kumar
Finance is a multi faceted concept. Are you referring to loans, insurance, savings or leasing. I think there is no one size fits all strategy, it all depends on where you want to reach this group and with what facility. I also think to be effective, we can not impose the same structures and systems used in the mainstream rather use innovative ways to cater for particular needs. further, I think policy plays a very important part here as well as multiple stakeholders working towards a common goal of including the unbankable
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