Busting the 10 Myths on Financial Inclusion
Myth No. 4
People need to own a bank account to be “banked” or financially included.
Broadly defined, “financial inclusion” means access to and usage of appropriate, affordable, and accessible financial services such as savings, payments, remittances, credit, insurance and investments.
Payments are a key entry point to supporting financial inclusion. Digital government-to-people (G2P) payments and remittance flows have, for example, created the initial momentum for electronic payments. This is the case for G2P payments in India and remittance flows in the Philippines.
New players can offer transactional financial accounts from a variety of licensed non-bank financial institutions such as payment banks in India, specialized banks in Cambodia as well as electronic money issuers such as in the Philippines where electronic banking started in 2001.
The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.