With 1.7 billion people having no access to basic financial services, the G20 summit starting this week has a golden opportunity to address financial inclusion and potentially lift hundreds of millions out of poverty.
This is the call-to-arms demand from Nigel Green, deVere Group’s founder, as 40 leaders of the world’s richest and most powerful nations descend on New Delhi, India, for the critical two-day event.
Financial inclusion refers to the availability and equality of opportunities to access and use financial services. These services include banking, credit, insurance, and savings facilities.
Nigel Green comments: “In our ever more interconnected global society, it is remarkable that a substantial segment of the world’s population still lacks adequate access to banking services or is underserved by them.
As data from the World Bank shows, around 1.7 billion adults across the globe currently lack any kind of fundamental financial services, with the majority of these individuals living in nations classified as low- and middle-income.
“Enhancing financial inclusion serves as a powerful instrument in the fight against poverty.
“When individuals can access financial services, they can effectively save, make investments, and safeguard themselves from unexpected economic shocks and financial setbacks.
“Consequently, this newfound capability enables them to break free from the cycle of poverty and enhance their quality of life. It can be truly life-changing.”
Financial inclusion also serves as a catalyst for economic growth through the encouragement of entrepreneurship and the nurturing of small businesses.
“When both individuals and small enterprises gain access to credit and other financial assets, they become capable of making investments in their businesses, generating employment opportunities, and encouraging economic progress,” says the deVere founder.
Another critical focus on the G20 agenda is the worldwide pursuit of gender equality, and financial inclusion can prove pivotal in achieving this goal.
Nigel Green continues: “Women, especially in developing nations, frequently encounter substantial obstacles when attempting to access financial services. By giving priority to financial inclusion, we can work to close this gender gap, thereby promoting economic empowerment for women and other underserved groups.”
He concludes: “By addressing the critical issue of financial inclusion, the G20 has a golden opportunity to potentially help lift hundreds of millions out of poverty, encourage economic growth, and promote gender equality.
“By acting on this issue, the G20 leaders will act to immeasurably contribute to global economic stability and prosperity.”
Is there a country that can be used as an example in successfully addressing access to basic financial services, especially poverty?