Banks and bank pricing as financial inclusion’s interface with consumers
With development in need of broader thinking around the social complexities of formal economic growth, somehow or other lower-cost business models that enable uptake and usage of financial services at scale will need to be developed for reaching the ‘unbanked’. At the same time, disrupting entrenched market obstacles that impede inclusion will need to be made a key policy focus. While the mobility of capital is largely driven by shareholder interest, the allocation of that capital as a public good must remain an issue for the public sector, assuming it is motivated by the need to overcome social and gender exclusion.
UNCDF’s affordability and bank pricing framework provides a tool for investigating and understanding the extent to which bank pricing is acting as a barrier to or enabler for increasing access to financial services – in particular bank services. From the data, particular insights on affordability emerge, alongside other insights useful for understanding how market dynamics might be improved so as to extend financial inclusion.