More than half of the world's poor don't have bank accounts, leaving them vulnerable to loss, theft and exploitation. A new Gallup Poll for the World Bank also indicates that many 'unbanked' women may not control their own assets and that people without access to banks are more likely to remain in poverty.
The report says that this lack of access is not only because of poverty, but also because of the cost, travel distance, and amount of paper work involved in opening regular bank accounts.
These problems are however, increasingly being dealt with with mobile phones and their use as popular non-traditional banking tools. These often do not require users to travel or set up an account at a brick-and-mortar branch.
Mobile banking services, which allows account holders to pay bills, make deposits or conduct other transactions via text messaging, has expanded to 16% of the market in Sub-Saharan Africa. Kenya, home of M-Pesa, where 68% of adults report using a mobile phone for money transactions, has seen particularly impressive growth in this market.
Robert Zoellick, president, World Bank, says: "Providing financial services to the 2.5 billion people who are 'unbanked' could boost economic growth and opportunity for the world's poor. Harnessing the power of financial services can really help people to pay for schooling, save for a home, or start a small business that can provide jobs for others."
