According to the World Bank (2022), over two billion people worldwide cannot access basic financial resources. When paired with a widespread need for financial literacy, this issue can be considered a large-scale socioeconomic problem, preventing economic development, especially in underprivileged populations. Real possibilities for societal transformation can come about when leaders, communities and businesses work together and utilise modern technology to support their goals.
The Bill & Melinda Gates Foundation has noted that providing financial services for the poor is one of its organisational goals. Financial inclusivity aided by technology is at the centre of their concern when battling the current socio-economic issues society faces today.
According to the Rangarajan Committee, Government of India (2008), financial inclusion is 'The process of ensuring access to financial services and timely, adequate credit where needed, to vulnerable groups such as weaker sections and low-income groups, at an affordable cost.’
Financial inclusion is a crucial pillar of social inclusion and is exceedingly useful in fighting poverty and income inequality by opening previously unattainable opportunities to disadvantaged parts of the population.
Aside from increasing the overall availability of financial services and products, financial inclusion also involves education on financial literacy, infrastructure and usage to ensure economic equality worldwide.
Financial inclusion can be broken down into the following types:
The Bill & Melinda Gates Foundation has worked with the Indian Government to influence people's lives in Bihar and Uttar Pradesh significantly. These states have a combined population of more than 300 million and are in dire need of financial inclusion, specifically digital financial inclusion.
The goal of the current financial inclusion programme set out by the Bill & Melinda Gates Foundation is to expand access to digital financial services among the poorest people in order for them to build security and prosperity for themselves and their families and their communities.
The foundation works to broaden the reach of low-cost digital financial services for the economically underprivileged by promoting the development of digital payment systems.
This can help spread digital financial services rapidly and support the development of national and regional strategies that accelerate progress for the economically underprivileged.
SatoriXR have been chosen to participate in the Technology4Inclusion Challenge. As the proud winners of the challenge, we have received extensive funding and are excited to announce our collaborative partnership with the Grameen Foundation in India. The Grameen Foundation will work with us over the next few months to build an AR-based learning application with a grant received from the Bill & Melinda Gates Foundation. This new augmented reality application will contain AR functionality, machine learning, games with Google Maps integration, and much more to support financial inclusion and literacy in the country.
According to a study delivered in the Journal of Economic Structures, financial inclusion contributes to
It may not directly eradicate poverty, but it can be considered to be an essential tool to increase economic development in developing communities.
Basic transacting is the first step toward widespread financial inclusion (The World Bank, 2022). Access to a transaction account dramatically improves the lives of the financially excluded by allowing them to send and receive payments and store money. Access to financial services and resources also helps businesses plan advancements and expand their activities (FINCA, 2017). Financial inclusion can benefit businesses in a few ways;
Financial inclusion is crucial as it acts as a strategic bridge that regulates access to financial services and products for those in need of basic financial services. Financial inclusion seeks to provide financial benefits to all participating members of society, regardless of their level of income or net worth.
According to OXFAM (2020), the wealth gap continues to grow more expansive, and fewer than 1% of the world's population owns 41% of its wealth. Powerful technological advancements suggest that the future of banking will centre on affordable mobile apps and that banks and, eventually, telecommunications firms will compete to provide financial services.
Suppose financial inclusion gains the support of technology and the private sector. In that case, digital financial services can lead to greater financial inclusion and the expansion of financial services and benefits to non-financial industries. This expansion of digital financial services will serve as both a commercial opportunity and a means of reducing inequality.
Financial inclusion faces challenges worldwide, and many disadvantaged people lack access to basic financial services. At SatoriXR, we remain committed to addressing the challenges of financial inclusion; with the development of our new AR application, we hope to bridge the gap between those who have access to financial services and the financially excluded.
Contact us today to find out how we can create custom VR and AR models to support your organisation's goals.