How Can We Bank the Unbanked?

by Jan 25, 2022Guides0 comments

bank the unbanked

There has been a tremendous advancement in the world’s digital financial services. Thus, it may come as a shock to you to hear that not everyone has a bank account. As a matter of fact, the World Bank reports that roughly 1.7 billion humans are unbanked, with 66% of adult population in Africa. What does it mean to be unbanked? It is simple- this sect of adult population does not use banks or banking institutions in any capacity. People who are unbanked or underbanked opt for the alternative forms of financial services, such as, money orders to take care of their monetary needs. So, you may ask;

Why Are People Unbanked?

Research explains that lack of fund is one of the main reasons for the unbanked population 2021. Countries with a huge chunk of unbanked individuals, have stated that having little money is the main reason for being unbanked. While it would be expected that a higher proportion of the unbanked population should reside in the less-advanced countries, and their low level of income would be the crux. This is however not true. According to unbanked population research, only a half of the percentage are from poor households. There are several other factors for being unbanked in Africa and beyond. Some of them are: costs of account, proximity to the bank, and of course, trust. These answer why there are unbanked/underbanked people. But, the main question is –

How Can We Bank the Unbanked?

Despite the fact that there have been major improvements in the financial advancements in Africa, and globally, there is still a crucial portion of the population who do not have access to conventional banking. Yes, there is a rise in accessible digital banking to people, bridging the financial gap, and allowing for financial inclusion. However, much of conventional banking process are still very rigid. And this makes it difficult for a considerable amount of the population to access the services that are vital to them.

On this ground, has NowNow Digital Systems been founded, and is fully committed to creating a financially-inclusive society through access to easy financial services. It has a wide range of high-quality financial products which cuts across payments, loans, health and insurance etc. Its relevance and affordability, especially for the low-income segment make it a critical tool for tackling poverty and inequality. NowNow has been a leader in changing how Nigerians send money to one another. Be it to send money to an individual, or to an enterprise, the payment app has it all covered.

 

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