financial inclusion

Top ten takeaways from the Financial Inclusion Summit Asia 2016

Darren Beck Event News 1 Comment

The 2016 Financial Inclusion Summit was a resounding success when it ran back in April. Here are the top 10 takeaways from the show, some food for thought as we look forward to the 2017 edition:

  1. Microfinance institutions are generally experiencing very high repayment rates of between 95-99%. On average the top 100 most profitable microfinance institutions worldwide have an average of 10.44% return on assets
  2. More regulators are recognizing the importance of creating an open and level playing field with low barriers to entry and a transparent regulatory framework. KYC adoption for onboarding is a generally positive development, although alternate data sources offer the opportunity to financially include those without a formal financial history
  3. Remittances are a key source of revenue for developing nations, far exceeding official development assistance and direct foreign investment
  4. Mobile money is changing the landscape of financial inclusion. In 2015, 37 markets had ten times more registered agents than bank branches and registered customer accounts grew 31% to reach a total of 411 million registered accounts globally
  5. To aid underserved SMEs and businesses, the benefits of investing in credit funds or peer-to-peer credit include being a steady income generator, not being correlated to other asset classes, low risk, low volatility investment
  6. In the near future, Central Bank issued currencies will be on the blockchain. Centralised blockchain currencies will displace messaging intermediaries like SWIFT
  7. Decentralised cryptocurrencies will continue to grow, with centralised blockchains only really making sense in a limited number of application
  8. Governments must proactively support financial literacy as an imperative for migrant workers and their families. Education is the key for these unbanked consumers in order to help them understand the benefits of financial services and better money management
  9. Credit line operations do not increase sustainable access to finance if other institutional, legal, and regulatory constraints to financial sector development are not addressed
  10. Simple credit card access is still a key limitation in developing nations. Many commercial platforms require a credit card to participate, leaving out many people who could benefit, and thus and thwarting inclusion

Stay tuned over the next month as we feature some of the best presentations from this year’s show! 


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