Translate this page
Providing financial literacy to the unbanked
Friday, May 23rd, 2014
Issue 21, Volume 18.
Indeed, according to the World Bank:
*Approximately 2.5 billion adults worldwide donít have a formal banking account.
*In developing economies, only 41 percent of adults have bank accounts (compared to nearly 90 percent in high-income countries).
*In developing countries, the wealthiest 20 percent are more than twice as likely to have an account than the lowest 20 percent.
*Thereís a gender inequality as well: 46 percent of men in poorer countries have a formal account, while only 37 percent of women do.
These statistics helped form the backdrop for the eighth annual Financial Literacy and Education Summit hosted by the Federal Reserve Bank of Chicago and Visa Inc. Renowned U.S. and international financial experts led lively discussions around the theme, "Providing Financial Literacy Resources to the Unbanked and Underbanked." Approximately 1,500 participants in 50 countries attended or watched the live online telecast.
Central to the discussions was the underlying question: "Is financial education important for a segment of the population that is largely excluded from formal financial services?"
According to Keynote Speaker Bill Sheedy, EVP, Corporate Strategy, M&A and Government Relations, Visa, and the other panelists, the answer is an unqualified "yes."
Along with identifying numerous challenges unbanked and underbanked people face, panelists also cited successful financial education efforts theyíve observed:
* Paula A. Cox, Former Premier and Minister of Finance, Bermuda, described a successful program in Bermuda where government representatives took small business development workshops to construction workers at their worksites.
* Jennifer Tescher, President & CEO, Center for Financial Services Innovation, cited her organizationís funding to help a financial coaching program become more cost-effective by allowing remote sessions and data transfer between clients and volunteer coaches.
* Leora Klaper, Lead Economist, Finance and Private Sector Research Team of the Development Research Group, World Bank, mentioned a World Bank project in Indonesia with migrant workers who frequently send money to family
Bottom line: Tremendous technological advances are being made around personal financial management. Our challenge is to find ways to bring those tools – and basic financial services – to vast populations of underserved individuals.
A parallel challenge is to continuing developing and distributing financial education materials that enable children and adults to understand how to manage their money.
Jason Alderman directs Visaís financial education programs.
The Valley News has tightened its' policy regarding comments.
While we invite you to contribute your opinions and thoughts, we request that you refrain from using vulgar or obscene words and post only comments that directly pertain to the specific topic of the story or article.
Comments that are derogatory in nature have a high likelihood for editing or non-approval if they carry the possibility of being libelous.
The comment system is not intended as a forum for individuals or groups to air personal grievances against other individuals or groups.
Please, no advertising or trolling.
In posting a comment for consideration, users understand that their posts may be edited as necessary to meet system parameters, or the post may not be approved at all. By submitting a comment, you agree to all the rules and guidelines described here.
Most comments are approved or disregarded within one business day.
The Village NewsAnza Valley OutlookFallbrook.orgSourcebookPDF VersionCoupon CornerSign up for iNewsEarthquake Info
357 Medical marijuan...
265 Arrests now numb...
175 Authorities seek...
168 Man hit, killed ...
125 Mother-in-law ar...
122 Camp Pendleton a...
121 Authorities dist...
121 Bikers steering ...
118 22 suspected ill...
117 Double fatality ...
114 Temecula mosque ...
114 Murrieta Mayor A...
110 Governor Brown s...
107 Bonsall man (lon...
105 Preliminary hear...