A new report from World Bank-based microfinance group CGAP and the UK's Department for International Development (DFID) shows that more than 170 million poor people worldwide receive regular payments from their governments, but the potential to use these payments to increase financial inclusion is largely untapped.
"Banking the Poor via G2P Payments" shows that despite the pioneering programmes in Brazil, India, Mexico and South Africa, fewer than one-quarter of government-to-person (G2P) payments to the poor worldwide land in a financially inclusive account, i.e. one that enables recipients to store funds, make or receive payments from other people in the financial system, and is accessible, in terms of cost and distance. "Often these transfers are made in cash or with a debit card that can only be used to withdraw funds. By using payments on a card, cell phone or a no frills bank account, governments could empower people with access to financial services well beyond the receipt of a government payment," said CGAP CEO Elizabeth Littlefield.
A new report from World Bank-based microfinance group CGAP and the UK's Department for International Development (DFID) shows that more than 170 million poor people worldwide receive regular payments from their governments, but the potential to use these payments to increase financial inclusion is largely untapped.
This press release highlights a new $26 million technology programme, co-financed by the Bill and Melinda Gates Foundation and implemented by CGAP, to look at how technology can be used to bring access to financial services to poor people in rural areas. Pilot programmes are underway in Colombia, Kenya, Maldives, Pakistan, the Philippines and South Africa.
This blog entry highlights the difficulty of using account-based delivery systems in countries where access to financial infrastructure is limited. It elaborates with the example of a Cape Town gardener who is struggling to access his right to unemployment insurance payouts based on him not having a bank account into which to receive the payments.
DFID announces a new initiative to promote "branchless banking" amongst the world's poor.
FAST (Facilitating Access to financial Services through Technology) is a new initiative to support the use of technology and innovation to bring financial services to millions of "un-served" people across the globe. FAST will:
A conference on banking technology begins in Nairobi on Tuesday morning as banks aggressively move into technology to improve their service delivery. Dubbed the Banking and Payment Technologies East Africa, 2009, the conference, organised by Aitec Africa, will bring together banking industry players and technology service providers with the focus on recent innovation in banking and payment systems in the region.