The Global Findex, a World Bank program launched in 2011 in over 140 countries studies how adults perform financial transactions across the world — how they borrow, save, make payments and manage financial risks. Its focus was in poor and developing regions of the world where it tracks the progress of financial inclusion. Its latest report says that more than 2 billion of the world’s population is still away from the financial mainstream.
Why Is There an Unbanked Population?
In a rapidly growing world, why such a huge chunk is still deprived from the benefits of a robust economy? The reasons for this are manifold. These include, more importantly to this context, the apprehensions of banks and financial institutions to reach these populations. The reasons are obvious. These people represent very low socio-economic groups and thus do not present a lucrative market. Other reasons include restrictive regulations, governance failures, lack of financial infrastructure and lack of suitable products. In all, these reasons are inherent to the traditional financial system. Read Full Blog :-https://medium.com/@MyLaLaWorld/banking-the-unbanked-a-risky-proposition-or-a-market-opportunity-28a8c5436ece