PURCHASE, N.Y.—MasterCard Advisors has released a new white paper around the subject of financial inclusion.
In a statement, MasterCard Advisors said financial inclusion is more than just a “business statement,” it is a key component of thought leadership.
“We envision a world in which everyone who can use them has access to and uses a full suite of quality financial services, provided at affordable prices, in a convenient manner, with respect and dignity,” the company said. “Financial services are delivered by a range of providers, in a stable, competitive market to financially capable clients.”
The white paper, “A Progressive Approach to Financial Inclusion,” used what the company said is a “data-driven approach” to demonstrate three key principles to inform the strategies that drive higher rates of financial inclusion.
Those three principles: 1) Financial inclusion is a progression with payments as the optimal entry point; 2) Usage of financial products must be an explicit goal, along with access to them; 3) Understanding the current state of financial inclusion in a country can be critical to shaping its future strategy.
Among the findings in the paper:
- It is critical to comprehensively and accurately define access and usage of products. “Access” can be more specifically defined by separating it into two levels: availability of products and adoption of products. This creates a quantifiable and actionable set of metrics. The degree of usage of financial products is more important than occasional usage.
- Financial exclusion is not limited to the developing world. Developed countries can also benefit from inclusion initiatives.
- Understanding the current state of financial inclusion in a country can be critical to shaping its future strategy. Factors that can change the pace of financial inclusion include the active role of governments in partnership with the private sector, participation by innovative non-bank companies in addition to banks, and consumer preferences.
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