Financial Inclusion represents more than a massive opportunity for banks to grow. It presents an opportunity to redefine the purpose of banking, going back to the future to rethink how financial services take customers on a journey of financial well being and be on purpose with great intent.
The majority of us do not have sufficient knowledge to understand even basic financial products and the risks associated with them. Most of us don’t plan for the future and fail to make effective decisions to manage our finances. As the global crisis has shown, this can have a negative impact on financial and economic stability, banks and the banking industry’s ability to sustain profitability as well as on individuals’ or households’ well-being. It turns out the numbers are staggering.
In the UK, the Office for Budgetary Responsibility (OBR) forecast now shows household debt in 2019 at 182 per cent of disposable income, seriously exceeding its pre-crisis (2008) peak of 169 per cent. Over the coming years, debt increases are set to outpace vastly incomes and earnings.