MICROFINANCE PUBLICATION ROUND-UP: From Access to Inclusion: Educating Clients; Economics of Digital Payment Systems; Financial Inclusion and Post Offices

From Access to Inclusion: Educating Clients,” published by Women’s World Banking; 2013; 32 pages, available at http://www.womensworldbanking.org/publications/access-inclusion-educating-clients/

This report addresses the use of mass media campaigns and one-to-one outreach by financial institutions to provide financial education to low-income women in order to promote increased usage of financial products. Research by Women’s World Banking (WWB) indicates that people with the most need for microfinance products, such as small business loans, savings accounts and microinsurance, often fail to use the services not because of lack of access, but rather due to inexperience with the formal financial sector. According to the report, financial education is the key to increasing financial inclusion for low-income women. In Africa, mass media campaigns, including commercials and public posters, and one-on-one education sessions have proved successful in increasing the number of low-income women that use financial products.

“Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems;” by Jason Lamb, Rodger Voorhies and Megan Ozman; published by Bill and Melinda Gates Foundation; September 2013; 115 pages; available at https://docs.gatesfoundation.org/Documents/Fighting Poverty Profitably Full Report.pdf

This report examines the economics of digital payment systems and their significance of increasing financial inclusion for low-income people around the world. According to the report, the financial services market currently is failing poor people, but can be improved through digital payment systems. These would reduce costs for financial services; increase profits for financial service providers; and allow more people living on less than USD 2 per day to access financial services such as bill-paying and sending and receiving money.

“Financial Inclusion and the Role of the Post Office,” published by Universal Postal Union; October 2013; 32 pages; available at http://news.upu.int/no_cache/nd/postal-networks-offer-major-potential-to-boost-financial-inclusion-new-upu-world-bank-study-confirm/

This study examines the role of post offices in providing financial services in developing countries. According to the report, low-income people are more likely to access financial services at a post office than a bank or other financial institution. However, 44 percent of people that live in developing countries use financial services compared with 90 percent of people that live in developed countries. The authors argue that there is significant potential for post offices to help lessen this gap.

By Megan McGowan

Sources and Additional Resources

Women’s World Banking: “From Access to Inclusion: Educating Clients,” 2013, http://www.womensworldbanking.org/publications/access-inclusion-educating-clients/

Bill and Melinda Gates Foundation: “Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems,” https://docs.gatesfoundation.org/Documents/Fighting Poverty Profitably Full Report.pdf

Universal Postal Union: “Financial Inclusion and the Rold of the Post Office,” 2013m http://news.upu.int/no_cache/nd/postal-networks-offer-major-potential-to-boost-financial-inclusion-new-upu-world-bank-study-confirm/

MicroCapital: “Financial Sector Deepening (FSD) of Kenya, Women’s World Banking of US Partner to Serve Women in Sub-Saharan Africa,” December 12, 2013, https://www.microcapital.org/microcapital-brief-financial-sector-deepening-fsd-of-kenya-womens-world-banking-of-us-partner-to-serve-women-in-sub-saharan-africa/

MicroCapital: “Cambodia Post Bank Opens, Targets Micro-, Small and Medium-sized Enterprises (MSMEs),” October 14, 2013, https://www.microcapital.org/microcapital-brief-cambodia-post-bank-opens-targets-micro-small-and-medium-sized-enterprises-msmes/

MicroCapital: “Tanzania Postal Bank (TPB), World Savings Banks Institute (WSBI), Bill and Melinda Gates Foundation to Launch “TPB Popote” to Reach Unbanked Tanzanians,” August 1, 2013, https://www.microcapital.org/microcapital-brief-tanzania-postal-bank-tpb-world-savings-banks-institute-wsbi-bill-and-melinda-gates-foundation-to-launch-tpb-popote-to-reach-unbanked-tanzanians/

MicroCapital: “US-Based Sequoia Capital Invests $2m in Equity in Electronic Payment Platform, Citrus Pay,” April 30, 2013, https://www.microcapital.org/microcapital-brief-us-based-sequoia-capital-invests-2m-in-equity-in-electronic-payment-platform-citrus-pay/

MicroCapital: “Triodos, Women’s World Banking to Co-Manage $30m Isis Microfinance Fund,” March 9, 2012, https://www.microcapital.org/microcapital-brief-triodos-womens-world-banking-to-co-manage-30m-isis-microfinance-fund/

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