{"id":4720,"date":"2018-06-19T12:38:36","date_gmt":"2018-06-19T12:38:36","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=4720"},"modified":"2023-05-02T15:43:43","modified_gmt":"2023-05-02T15:43:43","slug":"financial-inclusion","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/financial-inclusion\/","title":{"rendered":"The Short Read: How Banks Can Increase Financial Inclusion and Profits"},"content":{"rendered":"

A 3-minute read to deliver you value-packed info. No fluff included.<\/strong><\/em><\/p>\n

Strategic executives of global banks have raised three priorities to the top of their agendas.<\/p>\n

The first, expanding business and increasing revenue, is a constant. Recently, two more objectives have become critical.<\/p>\n\n

Guarantee your financial inclusion efforts succeed with greater software adoption.<\/a><\/h3>\n

One is rebuilding trust. In the wake of the latest fiscal crisis and several high-profile financial scandals, the need to restore public trust is greater than ever before.<\/p>\n

The next one \u2014 social responsibility \u2014 may initially appear at odds with traditional business goals. However, cultivating a strong identity of social responsibility is not only virtuous, it\u2019s an important competitive differentiator.<\/p>\n\n

How does this all connect?<\/h2>\n

Consumers today often make decisions about where they put their money based on an institution\u2019s social position and actions. Sixty-one percent of consumers think it\u2019s important to do business with socially responsible corporations<\/a>.<\/p>\n

There is one way banks can achieve all of these goals \u2014 through financial inclusion.<\/strong> Thanks to the advent of financial technology, they now have the means to do so.<\/p>\n\n

Investing in a financial inclusion strategy could be the answer for the banking industry<\/h2>\n

\"developing<\/p>\n

Jan Bellens, Global Emerging Markets Leader at EY, defines financial inclusion as:<\/p>\n\n

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\u201c… Providing affordable and relevant financial products to individuals and businesses \u2014 including micro, small, and mid-sized enterprises \u2014 that lack access to these products.\u201d<\/p>\n<\/blockquote>\n

With greater financial inclusion, global banks can expand their customer base, unlock new economic benefits for emerging economies, and increase revenue.<\/p>\n

They will also take a leading role in fulfilling social needs by improving the financial health of communities and businesses, raising trust as a result.<\/p>\n\n

Quantifying the potential of financial inclusion<\/h2>\n

Roughly 1.6 billion people out of the global population of 7.6 billion are unbanked, according to research by EY<\/a>. There are also more than 200 million micro, small and medium-sized enterprises that lack access to basic banking services.<\/p>\n\n

Where are the financially excluded?<\/em><\/h3>\n

Financially excluded mid-sized enterprises are predominantly located in five markets, including China, Brazil, India, Columbia, and Thailand, according to EY.<\/p>\n\n

Why aren\u2019t these potential customers currently served by banks?<\/em><\/h3>\n

EY identified five main reasons for financial exclusion:<\/p>\n\n