What would YOU do if you didn’t have a bank account? How would you get paid, pay your bills, save your money, get a loan and take part in the modern economy? For billions of people, that is their reality.
Before you tune out, thinking that’s too bad and going on with your life, consider that it’s a $4.2 trillion opportunity. Providing the unbanked or underbanked with access to financial services will add 1.6 billion people to the financial system by 2025, helping them tremendously in their daily lives. And, for those who can figure out ways to successfully reach, onboard and service those customers, a bonanza of new revenue streams awaits.
That’s what is behind the upcoming Financial Inclusion Week, “exploring the most important steps to achieving full financial inclusion, a state in which everyone has access to a full suite of quality financial services, provided at affordable prices, in a convenient manner, with respect and dignity.”
Trulioo is deeply committed to this cause because one of the first stumbling blocks to financial inclusion is trusted identity. Billions of people do not have the traditional forms of ID that financial institutions require to open accounts. If regulators adjust their identity verification requirements to include cyber identity data from mobile devices and ecommerce sites, this data may be used as an alternative source for identity verification for the 2.5 billion unbanked people in the world.
One example is VoLo Africa, a company in Africa that provides a trust information platform that combines data from financial and utility records, court judgments, and other public records and documents to provide reliable credit information to financial services companies. Despite the challenge posed by a lack of national ID cards in most developing countries, companies like VoLo and projects like Aadhar in India are addressing the issue and provide effective solutions for better and more affordable KYC compliance.
Trulioo’s technology is also built for mobile and online onboarding and mobile is the way that over a billion new people can effectively get financial services. Bricks and mortar operations are expensive, so the rapid advance of mobile financial services are a key enabler to successful financial inclusion.
Financial inclusion empowers individuals to take part in the financial system by:
- Supporting healthier and more productive families,
- Providing infrastructure for community development,
- Giving stake and accountability in the overall system,
- Growing GDP.
This year’s Financial Inclusion Week will be held from October 17-21, 2016 and the theme is keeping clients first in a digital world: “With rapidly expanding use of mobile and smart phones, an unprecedented number of traditionally excluded or underserved people are accessing financial services for the first time. While this presents an amazing opportunity for providers, regulators, and consumers alike, clients must remain first in this newly digital world for benefits for all sides to be attained.”
Thirty partners will be holding events, promoting conversations, hosting webinars or live-streams, and sharing on social media — #finclusionweek.
FI2020 Week is an initiative of Financial Inclusion 2020, a global movement to advance financial inclusion. FI2020 has developed a widely adopted definition of financial inclusion, identified the greatest opportunities and obstacles to financial inclusion, highlighted key market segments that are excluded through its “Mapping the Invisible Market” project, and worked with almost 200 industry leaders to develop a Roadmap to Inclusion around key topics: financial capability; addressing customer needs; technology; client protection; and credit reporting. The FI2020 Global Forum was a watershed event, bringing together diverse leaders around the vision of accelerating inclusion for all. FI2020 is a project of the Center for Financial Inclusion at Accion.
So, over to you, how can we keep clients first in a digital world? Leave your thoughts and questions in the comments.