Source- World Bank Group
What is Financial Inclusion?
According to the World Bank Group, 1.7 billion people are unbanked. In other words, they have no access whatsoever to financial services. (Source- World Bank Group)
This denies the excluded population the tools they need to increase their earnings, ensure their survival, and deal with emergencies.
Financial services can assist millions of individuals in developing nations to escape poverty each year and make a lasting difference in their lives.
Microfinance – An Introduction
Microfinance can be defined as provision of access to capital and financial services in low-income economies.
Microfinance is offered both to businesses and individuals in the form of credit, savings, remittances, payment services, insurance and other basic financial products.
Of all the people living in poverty worldwide, approximately 500 million are estimated to constitute the economically active poor, who are trying to improve their income through microbusinesses and accordingly have a need for loans and other financial services.
From microloans to microentrepreneurs
It is all about the empowerment of people, all about making a commercial investment in a huge, promising market with entrepreneurial bottom-up dynamics.
Poverty can be alleviated if economically poor people are given opportunities. Millions of individual cases show the powerful energies that can be set free if access to credit, know-how and markets is assured.
The financing barrier is not only faced by individuals. Today, access to finance is still by far the largest obstacle to growth for micro, small and medium-sized enterprises (SMEs), particularly in low- and middle-income markets. Those companies are key to creating a bottom-up dynamic development by creating millions of jobs