Financial Inclusion Journey
The landscape of microfinance all over the world is experiencing an increase with the use of digital finance models and mostly with the use of mobile money which offers targeted audiences the opportunity to transact business seamlessly in an informed market.
Digital reality is redefining the way micro financing is being practice all over the world. This is because modern technologies are being deployed to serve customers better. The refusal to invest in Morden technology is what hampers the growth of some MFBs.
One of the easiest ways to penetrate a market with innovative financial solution is to introduce financial literacy programmes and equip the target audience with accessible tools to ease their businesses. Transaction from mobile apps and short code transaction will come in handy at this stage. This is because the percentage of underserved clients in terms of credit facilitation and deposit mobilization is so enormous.
The overall growth expected from microfinance activities can only happen if MFBs decide to evolve and adapt to the competitive environment in which they find themselves.
Some have refused to grow along with technological advancement that aids financial inclusion and still decide to stick to their unorthodox microfinance practices.
Given the role of financial inclusion, the overall goal is to make the financial landscape inclusive for everyone. What is the essence of promoting financial inclusion when there is difficulty in accessing required funds for ease of doing business?
Achieving financial inclusion through digitization will require that any person with a phone should ordinarily have access to financial banking services without leaving his comfort zone.
One of the principles of microfinance state that “Government should complement and not compete with microfinance banks”. This statement shows that the government should introduce policies that aims to promote financial inclusion in its entirety through digitization. While it seems impossible to achieve a full scale cashless policy, flexible automated banking process with the use of short code application can actually increase financial participation.
People should be able to open bank accounts, transfer funds and conduct other financial transaction without walking into a financial institution.
Another interesting feature will be to attach mobile wallets to mobile phones numbers linked to their various accounts. ‘
Electronic payment would greatly reduce human interface while strengthening the fight to increase financial inclusion.
What is expected of the government is to require financial institutions and the citizens to make sure payments and receipts are done electronically.
Achieving digitization and attaining the National Financial Inclusion Strategy 2020 will require regulators to introduce initiatives that will produce full participation in the financial activities of the populace.
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