‘Financial inclusion vital for growth’

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FINANCIAL inclusion increases economic growth in a more sustainable and balanced way, a PricewaterhouseCoopers (PwC) report says.

The report says in turn the move expands demand for financial services, banks and Non-Banking Institutions.

The importance of financial inclusion, the report says, was that it was part of the national financial sector development policy and national financial inclusion strategy.

This is in addition to the Bank of Zambia strategic plan and other key Government policies that affect financial institutions’ business.

This is contained in the PwC’s 2018 Banking and Non-Bank Industry survey report. According to the report, the unserved and underserved were a significant untapped client market who would be loyal and profitable to the bank if services were reliable and easily provided to them, particularly in digitize products.

“In Zambia, financial inclusion is expanding in two main ways. For rural people, especially for women, the growth of savings groups is the entry point for lending, savings, and micro insurance,” the report says

The report says for youths and urban dwellers, the growth of digital finance and expansion of mobile money services was occurring, from cash-in/cash-out to savings held in mobile wallets, small scale digital borrowing and blended services including transfers and financial education.

“Since we know that both of these areas can have strong potential engagement with banks and non-bank financial institutions, financial institutions have the option to develop linkage products for the rapidly expanding savings groups to help clients graduate into their services,” the report says.

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