Partnerships key to boosting financial inclusion � banker
Pauline Dikuelo | Thursday November 19, 2015 16:06
Financial inclusion is defined as the level of access to banking, remittances and any other financial services in a country or society.
Speaking at the Botswana Institute of Bankers graduation and awards ceremony on Tuesday, Pal said this effort could be achieved when the banks collaborate with other stakeholders like financial as well as educational institutions.
“Botswana statistics show that the unbanked constitute more that 50 percent of both the learned and less privileged’s total population hence the reason why we think it is important to stress the importance of empowering the disadvantaged with financial inclusion,” he said. Furthermore, Pal noted that in advanced economies financial inclusion is more about knowledge of fair and transparent financial products and a focus on financial literacy adding that in emerging economies, it is a question of both access to financial products and knowledge about their fairness and transparency.
According to Pal, financial inclusion could improve the efficiency of the process of intermediation between savings and investment as well as help improve a more stable retail base of deposits.
“It facilitates greater participation by different segments of the economy in the formal financial system. It also helps people to move from the cash economy to the bank accounts, which can be monitored,” he added.
Pal said financial inclusion could improve the access to finance as well as the cost of the service that small businesses receive from banks adding that these factors are key to the profitability and prosperity of businesses as well as the backbone of any growing economy.
In addition, Pal noted technology has the potential to address issues of outreach and credit delivery in rural and remote areas in a viable manner.
“There is need to explore the expanded role of technology in financial inclusion as well as developing new measuring and monitoring mechanism of financial inclusion impact with greater involvement of financial institutions as well as stakeholders.”
“We appreciate your efforts for transferring knowledge to the students because it will in one way or the other spill over to all stakeholders of the financial institutions and to the community at large, which in turn will enhance financial inclusion initiatives in Botswana,” he said.