The Banker, "Reaching out to the financially excluded"
Banks that ignore the huge numbers of people who remain outside the financial system may be missing an opportunity to improve their image and increase their profits.
Financial exclusion is seen as a purely developing world problem. It is not. In some developing countries, almost three-quarters of the population are unbanked and access to financial services is confined to the urban middle classes. But the number of people in mature economies who remain outside of the financial system is also shocking.
Should banks care? The smart banks have realised that reaching out to the marginalised can be profitable, and helps to nurture a client base for the future. In addition, it can also go a long way to improving a public image badly in need of repair for some banks in the wake of the financial crisis.
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