The effects of financial inclusion involve all households having access to finance. However, in developing and emerging economies, total financial inclusion is yet to be realized. Microfinance bridges the gap between formal lending and informal lending where poor and low-income households can get a supply of basic financial services. Low-Income households have few assets that can be used as collateral and are therefore in need of other avenues of credit. Microfinance tools encompass savings, credit, cash transfers, and insurance which are provided by a variety of institutions such as cooperatives, non-financial enterprises, and banks. Provision of financial services for small-scale…
Author: Winnie Banice
Winnie Banice
I am a banker, passionate about financial inclusion, transforming how and why we practice finance and invest. Writing on issues that affect the financial sphere and propel us to better inclusion, sustainability, and investment decisions, creating awareness, with the mantra ‘knowledge is power.’
In recent years, there has been rapid digitization of customer service in the banking sector. Consequently, a huge percentage of existing bank customers are now digital savvy and more informed. This has opened opportunities for innovative non-traditional competitors, such as financial technology (fintech), next-generation banks, and non-banking institutions. Therefore, banks in Kenya and globally, in order to offer quality services are continuously adapting to better serve their clients. The competition between banks is also stiff, as customers are better equipped with alternative banking options information that is easily accessible online. In addition, bank customers are wooed by rival banks through…