Financial services might not be very new, but the exposure that it has received over the years has grown out to be strong enough. As of records, in the last few years, hundreds and millions of people have finally had access to these essential financial services across the globe. In just five years, 700 millions of people have had their bank accounts for the very first time. The World Bank signifies this as a feat on its own, and also the share of the world’s population who has a bank account increased to 62 percent. Why is this change noticed so suddenly? Why are people getting so much involved with the banks, accounts and other financial services?
Consolifi has noted a significant point out of this- as the innovations of the digital technology have paced itself up, and also there is a spread out analysis of the consumer data as well, the financial institutions and banks have got slightly better. Several low-income consumers are also getting the scope to have their bank accounts for the first time.
As far as the banking sector is concerned, this expansion to the varied range of consumers, and their first-hand access to the services give an exciting opportunity to the entire whole. But still, there are millions who haven’t found the right exposure to the services which was needed. However, account ownership is the fundamental step towards the initial exposure to the financial services and its inclusion. So how the banks can increase the access to the banking sector and bring in multiple opportunities to the bank as well?
There is a unique way of doing this, and it requires thorough research and development as well. It is to be understood that the approach of the poor and the below the poverty line members is entirely different than the affluent or the middle class. They are more interested towards borrowing and saving, make the necessary payments and manage the risks.
So when it is being said that the sole reason for having 460 million dormant bank accounts in the entire United States is due to lack of exposure to the financial services, there might be some mistakes in the interpretation for sure. It is the lack of the banking services which could not reach out to these places justifiably and hence, there are alternative products and pre-dominantly cash, which rule the scenario.
So, according to the experts at Consolifi , the financial products existing needs to be modified, and the newer ones need to be designed keeping the cash flow of the consumers and their dire needs under scrutiny. One-size-fits-all products are the most accepted and easily comprehensible in the market, giving the flexibility to both the consumers and also the banking institutions. But whether it serves those purposes fittingly is a significant concern.
Much more of planning and proper execution is what the current scenario needs, and hence the world can expect to have a safer and sound financial condition in the decades to come.