EXPLAINER

Busting the 10 Myths on Financial Inclusion

Myth No. 7

Without proof of identity, the "unbanked" cannot become financially included.

Fact

There are approximately 1.5 billion people globally—the majority of whom live in Asia and Africa—who cannot prove their official identity or lack official forms of identification. Not having an official identity cuts them off from basic services, including opening a bank account.

New technologies are helping to change the way financial service providers can gather information for identity verification. In India, for example, the Aadhaar identification system uses biometrics for customer verification. With the Aadhaar system, the number of people in India with national identification has reached over 1 billion.





Disclaimer

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.




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