World Bank and Partners Commit to Accelerate Financial Access by 2020
On April 17, the World Bank and a coalition of partners, including multilateral agencies, banks, credit unions, card networks, microfinance institutions and telecommunications companies, united under one goal: universal financial inclusion by the year 2020. Financial inclusion includes being able to access to formal financial institutions thus giving customers the ability to open transaction accounts and safely send and receive payments. Financial inclusion serves as a bridge to improve financial stability, increase financial options and empower impoverished individuals. FINCA recognizes that financial access is integral to raising one’s standard of living.
Reaching the remaining two billion unbanked people by 2020 is a priority for FINCA and its peer organizations. In the past three years over 700 million people worldwide have gained access to formal financial services and products, but that only constitutes 20% of the world’s financially excluded. To keep this momentum going, the World Bank and its partners, including the Microfinance CEO Working Group (MCWG) pledged to reach the two billion remaining unbanked people by 2020. The MCWG, of which FINCA is a part, has pledged to open 70 million new accounts worldwide.
In order to achieve our goal, FINCA is innovating through client-centric product development, increased use of alternative delivery channels to reach more and more remote clients and other means that simplify our processes, reduce time and cost for our clients and increase flexibility. We have made incredible leaps, but we have much to do.
Public and Private Sector’s Numeric Commitments:
- World Bank will reach one billion unbanked people.
- The MasterCard Foundation will ensure 500 million people open new accounts and regularly use them.
- Bank Mandiri will reach 50 million unbanked Indonesians
- Visa will provide electronic payment accounts to 500 million people.
- Bandham will open 20 million savings accounts and 10 million credit customers.
- Equity bank will reach 50 million new clients.
- Global Banking Alliance for women will increase financial access to 1.8 million women in Latin America and Africa.
- Microfinance CEO Working Group commits to opening 70 million accounts around the world.
- Microcredit Summit will increase outreach to 53 million of the world’s poorest families.
- Ooredoo commits to expand their mobile services to 17 million new people.
- Telenor will ensure that 50% of its customers will have access to financial services.
- World Council of credit unions commits to extend its credit union services to 50 million new people.
- World Savings and Retail Banking Institute commits to ensuring that its 950 million members will have accounts.