When we hear the term \u2018financial inclusion\u2019 we often think \u2018banking for the under-privileged\u2019.\u00a0 I maintain and often advocate that actually it is much more than that \u2013 it is a belief that equates individual financial independence to a nation\u2019s economic progress.\u00a0\u00a0 Put simply, financial inclusion directly correlates with the aspirations and wealth of any nation.<\/p>\n
It is well-known that financial inclusion is about delivering financial services at affordable costs to sections of disadvantaged and low-income segments of society.\u00a0 So it follows that inclusive financing will empower that same society and increase individual independence as well as the banking communities\u2019 weight.\u00a0 Any initiative that aids the eradication of dependence on debt and promotes saving and financial independence is worth pioneering.<\/p>\n
The UAE Banks Federation (UBF), a professional representative body representing 50 member banks in the UAE, works to enable all members of the community to enjoy the opportunity to take advantage of any and all of the financial services offered by banks.\u00a0 Varying demographics, levels of educations and economic development within nations hamper this progress and present challenges.<\/p>\n
In the UAE we have taken great strides to improve and enable an environment ripe for financial inclusion as most adults in the UAE hold more than one bank deposit account.\u00a0 We need to continue to innovate and improve technologies that enable financial inclusion while also avoiding risks inherent with potential microfinance options.\u00a0 We therefore encourage continued striving towards high quality regulatory and supervisory models of working within banks.\u00a0 We encourage innovation and continuous assessment of new technologies that pave the way for increased accessibility.\u00a0 We also encourage competition among the banking community since we believe that improved financial inclusion is critical, in turn, for the competitiveness of the nation as a while.<\/p>\n
There are a number of factors that drive such an initiative as financial inclusion \u2013 fairness, transparency and access.\u00a0 Most of the underprivileged in the UAE tend to be in remote areas; therefore lack of accessibility is a key deterrent to knowing about services available as well as locating these.\u00a0 \u00a0The UBF and the Central Bank are working on an initiative that includes the ability to provide financial services to various segments of the population through mobile phones.\u00a0 I am encouraged by the innovation already demonstrated by member banks in the UAE.\u00a0\u00a0\u00a0 Embracing technology, harnessing and cultivating a saving generation means banks and our society can work together to make financial inclusion a reality throughout the UAE.<\/p>\n
All of the above is underpinned through education. If we can permeate the youth of today in underprivileged areas and stimulate financial literacy, we can help avoid the pitfalls seen through history, specially after the international financial crisis.\u00a0 There is more than one definition for\u2018access\u2019 and educating all on the various personal finance jargon and therefore making personal finance more\u00a0accessible<\/em>\u00a0will bode well for a more inclusive financing society in the UAE. The banking community in the UAE has an opportunity to lead the way.<\/p>\n HE AbdulAziz Al Ghurair, Chairman of the UAE Banks Federation<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When we hear the term \u2018financial inclusion\u2019 we often think \u2018banking for the under-privileged\u2019.\u00a0 I maintain and often advocate that actually it is much more than that \u2013 it is a belief that equates individual financial independence to a nation\u2019s economic progress.\u00a0\u00a0 Put simply, financial inclusion directly correlates with the aspirations and wealth of any …<\/p>\n