Banking for Billions: Increasing Access to Financial Services

This report examines the current state of financial inclusion, and assesses some of the main challenges and opportunities in this area.

There is strong consensus that increased levels of financial inclusion can reduce global poverty. Technology is providing innovative delivery mechanisms that provide solutions to problems associated with physical financial infrastructure. The ability to improve financial inclusion, however, depends on the interaction of a large number of stakeholders, including the private sector, government, policymakers and NGOs. Barriers to financial inclusion include lack of education, outdated regulation and policies, and cultural mistrust of formal financial providers.

Study findings indicate that financial exclusion is a global issue. The report states that:

• Mobile telephones, smart cards and electronic transfers have already made huge inroads in banking;
• Need for new approaches to the provision of finance is leading innovation, helping to expand the reach of financial services and reduce costs for customers and providers;
• Mobile phone technology is a lifeline to the unbanked, but regulators find it difficult to keep pace with these innovations;
• Policy measures to increase financial inclusion must be cautious in order to prevent counterproductive outcomes.