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African WSBI members explore ways to boost financial inclusion

African WSBI members explore ways to boost financial inclusion

Urgent need to boost the level of access to financial inclusion


 

>> Discover WSBI regional groups

>> Learn more about the event

>> See our commitment to financial inclusion


 


 



 

​​​ANTANANARIVO, Madagascar, 30 May 2016  Achieving better financial inclusion remains a challenge for WSBI African members attending the two-day 22nd Regional Group Meeting. A central theme of this year's meeting in the Malagasy capital, getting more people into the financial mainstream requires a careful look at how to bring together savers and borrowers in a formal financial system that works in an efficient way. 
 
All speakers and panelists agreed that digital technology now provides a once-in-a-lifetime opportunity to bring to life an historic breakthrough. Redouane Najmeddine of Al Barid Bank in Morocco, stressed that a bank that works with less affluent people is not only a viable business model, but more than that a profitable business model. Banks should not wait for savings to arrive at the bank doorstep, he said, but being on the front foot and seeking savings deposits is job one. Thanks to the use of technology, banks are increasingly able to channel those savings to efficient investments. In this way, Al Barid Bank in Morocco but all other African members can play and efficient role to make the economy work in a more efficient way.
 
Sitting on a local economic time bomb

Kailash Sharma Ramnauth, IFC country manager for Madagascar, Mauritius and Seychelles gave a big picture view of the need for financial inclusion, saying that if member banks don't boost the level of access to financial services and fail to improve access to education and to jobs, banks and society as a whole will be sitting on a local time bomb. ​Madagascar is especially affected, with less than 10% of the adult population is part of the formal banking system.

Representatives of the Central Bank of Madagascar and the Ministry of Finance and Budget, as well as a representative of the African Development Bank, agreed on the fact that a lot of progress has been made in the field of the regulatory framework for microfinance and access to finance in general. A priority, however, is to adapt that regulatory framework to the new paradigm brought about by digital innovation.

>> Discover WSBI regional groups

>> Learn more about the event

>> See our commitment to financial inclusion



 


 

Financial inclusion; Digitalisation