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Comments: (4)

Clive Munn
Clive Munn - MFTSE Affairs S.A. - Luxembourg 02 June, 2015, 06:23Be the first to give this comment the thumbs up 0 likes

A great idea but maybe a bit ahead of its time because the first challenge is to reduce the under-banked. Also there is one aspect that bothers me and that is the question of pricing. If we are talking about real inclusion, profit &,worse still, greed should be secondary. Reward may come later and indirectly if we are successful in expanding inclusion of the poorest of the poor within the global economy. Maybe this could be achieved through digital or crypto-currencies effectively bypassing banks. I think this can only succeed through smal inclusive micro-economies and not through an isolated 'big bang'

Graham Seel
Blog group founder
Graham Seel - BankTech Consulting - Concord 04 June, 2015, 01:31Be the first to give this comment the thumbs up 0 likes

Thanks Clive. Regarding pricing there is a delicate balance. If we want sustainable financial services, offered by private institutions (rather than government banks), then they will need to generate adequate return on investment to warrant the investment. This is why consumer advocacy groups and associated legislation are essential, because as you indicate when profit is the primary motive then unnecessarily high prices will result, absent strong competition.Managing transactional costs down to very small amounts is paramount - this is likely to occur only with scale, which is very challenging for small micro-economies. There is undoubtedly great value for the poorest in particular with savings groups and so on, but they have limitations and risks of their own that can sometimes offset the low cost of participation. This is a really complex topic that needs lots of dialogue and experimentation, and has no easy answer.

Clive Munn
Clive Munn - MFTSE Affairs S.A. - Luxembourg 04 June, 2015, 09:07Be the first to give this comment the thumbs up 0 likes

Hi Graham,

Thanks for your response, I quite agree that this is a highly complex topic but there are micro-finance companies already adopting the micro-economy route by joining organisations like 'friendship' in Bangladesh http://www.friendship-bd.org/

I think that we have to get away from ROI being the main driver and look more long term at the global benefits. Maybe we do have to have local governments involved rather than repeating the old mistakes of the recent past. Transactional costs can also be reduced to virtually zero by using digital currencies as I mentioned (there may be other ways including instant payments happening soon).

The answer is definately not easy but I believe there are movements in the right direction and indeed I would like to help keep up the dialogue, educate people and keep up with the experimentation. Perhaps this blog is a step forward?

Clive Munn
Clive Munn - MFTSE Affairs S.A. - Luxembourg 10 July, 2015, 20:29Be the first to give this comment the thumbs up 0 likes

Disappointing to see there are no new posts on this superb article!!

Graham Seel
Blog group founder

Graham Seel

Principal Consultant

BankTech Consulting

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17 Apr 2015

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This post is from a series of posts in the group:

Financial Inclusion

The financial services industry has much to contribute to the UN and World Bank goal of full financial inclusion by 2020. This group will focus on industry contributions, ideas, barriers and enablers.


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