Friday, August 28, 2015

Financial Inclusion: A topic that we will hear more and more about

In the past few years there has been an ongoing effort to improve financial inclusion around the world. Financial inclusion is the delivery of financial services at affordable costs to disadvantaged and low income sections of society. In a recent speech posted on the Bank for International Settlements web site, Dr. Zeti Akhtar Aziz (Governor of the Central Bank of Malasia) talked about progress in this effort. Below are the concluding remarks to his speech on the topic.


Our collective efforts in advancing financial inclusion have yielded many significant achievements. The Global Findex Database 2014 will be an important contribution to more optimal and impactful financial inclusion policy making and implementation. Bank Negara Malaysia would like to congratulate the World Bank Group on this accomplishment. We would also like to reaffirm our unwavering commitment to the financial inclusion cause and look forward to deepening our cooperation with all stakeholders to fulfil the promise of greater financial inclusion, thereby bringing hope and better opportunities to our communities.
One of the big benefits to affordable financial inclusion is that it makes it easier for those who have migrated away from their own country (to find higher wages) to send money back home. These remittances are a huge and growing part of the global economy. Dilip Ratha, Manager of the Migration and Remittances team at the World Bank gave an interesting Ted Talk on this topic which you can view here or watch below. Improvements in payments technology is helping to lower costs for many who use remittances. Mr. Ratha points out that ALL of the funds sent by remittance reach those who need it directly as opposed to government aid programs where this is often not the case.

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