Financial inclusion- changing the way we bank in #Africa

Governments, international institutions around the world, have identified that the role of financial institutions can alleviate the rate of poverty within a country.

Therefore the issue of financial inclusion has moved up the agenda in developing and emerging countries.

From the research that i have conducted within Africa, I have discovered that more that two thirds of the older generation has no access to financial services in Africa and sub-Saharan Africa therefore the inclusion is at its highest amongst the youth and women in the poorest of society.

The amount of income poor people possesses, makes it extremely hard for banks and any informal financial institution to gain sufficient profit margins.

But what needs to be looked at, isn’t just about poor peoples credit services but other services, seeing that their income is low, irregular and unpredictable. Which seems to become a need in Africa.

Therefore financial inclusion has led to many developmental based solutions which includes the savings services/groups.

Now the savings revolution is taking place across the globe. Saving evens out debt, this smoothens irregular income patterns which meets the basic consumption needs in Africa. Once a saving culture have developed in Africa this could lead to many small business being developed.

When this occurs, security options becomes a huge topic. With savings a stable springboard and a path to formal financial inclusion begins.

Sources:

Picture- LinkedIn.com

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