Infographic: Financial Education & Inclusion
Financial Education & Inclusion
Bridging the Gap to Financial Well-being for All
What is Financial Inclusion?
Financial inclusion means individuals and businesses have access to useful and affordable financial products and services that meet their needs—transactions, payments, savings, credit, and insurance—delivered in a responsible and sustainable way.
The "Unbanked" Population
76%
of adults globally had a bank account in 2021, up from 51% in 2011.
5.4%
of households in the USA were unbanked in 2021.
1.2M
adults in Britain were unbanked in 2020.
Why is Financial Education Important?
Empowering Individuals
Financially literate individuals are better equipped to make informed decisions about savings, investments, and debt.
Market Stability
Improved financial literacy helps ensure proper market conduct and contributes to a more stable financial system.
Focus on Vulnerable Groups
Older People
Face challenges with the shift to digital banking and are more vulnerable to fraud.
Women
Often have fewer opportunities for financial education and access to formal financial products.
Young People
Need early education to build a strong foundation for future financial well-being.
Key Enablers of Financial Inclusion
Mobile Money
Mobile money services like M-Pesa in Kenya have revolutionized access to financial services, allowing users to deposit, send, and receive money using their mobile phones. This has been particularly impactful in regions with limited banking infrastructure.
- M-Pesa (Kenya): Grew to 30 million active users by 2022.
- Paytm (India): Reached 330 million users by 2021, spurred by government initiatives and the pandemic.
Role of Banks & Governments
Banks and governments are crucial in driving financial inclusion through partnerships, creating supportive regulatory environments, and offering educational programs.
Opportunities:
- Building on digital payments.
- Cross-selling a full range of products.
- Using data to understand customer needs.
Barriers:
- Lack of trust and digital literacy.
- Regulatory issues and data privacy concerns.
- Lack of infrastructure in some areas.
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