Financial Inclusion is Heading for YOU!
By Yasser Aboraya
Financial what again? If you have been paying close attention to the media, banks, or other financial institutions (insurance companies for instance) the past few months you must’ve have heard/read at least once about something called “financial inclusion” or “الشمول المالي” and it’s kinda big deal. Here is what you need to know to understand what is the financial inclusion and why the Egyptian government is currently focusing on it.
Including what exactly?
First things first, from the name it’s very clear that someone is going to be included in something. Put more seriously, financial inclusion refers to the process of ensuring that all segments of a society have an appropriate access to financial products. Financial products in this case includes everything from having a bank account to insurance coverage.
But whats the use?
Well there are actually a number of benefits to financial inclusion and here are some:
So what do you need to do then?
- For starters, low-income households may need effective financial tools for managing their finances.
- Educating the population about this thing called “financial literacy” (google it, I don’t have time for this)
- Better financial monitoring by the government through reducing the amount of money under the بلاطة.
- More money by acquiring un-banked customers.
- Improving the range of financial services to serve the needs of everyone.
- More access to credit = more business growth (mainly SMEs) = more jobs (or 2008 all over again…).
- Brings us closer and closer to fully being a cash-less society.
- Helps in fighting parallel markets and money laundry.
Currently less than 25% of the Egyptian adults own an account at a formal financial institution (which is somewhat scary from a financial monitoring perspective). All you need to do is start dealing with a bank and educate yourself with all sorts of financial services and products there is. Ohhh, and be patient cause full financial inclusion could take years and years attain.