Financial services providers for low-income customers typically believe that their business case is based on expanding the number of accounts or the number of transactions made by these customers. This is only part of the equation to business success.
The amount of electronic data generated by computerization—digital data—is growing at unprecedented rates. Financial services are an information business—can this growing wealth of data be harnessed to advance financial inclusion?
This Brief addresses the recent movement toward responsible finance, which has shaped the industry's belief that financial service providers have a responsibility to deliver financial services in a way that is transparent, fair, safe, and likely to generate benefits for poor clients.
Despite significant evidence to the contrary, many financial institution managers and policy makers do not believe poor people save money. They tend to assume that poor people are “too poor to save,” that they prefer to consume rather than save excess income, or that when they do save it is only to access a loan.