Despite attention to the challenges surrounding financial inclusion, an estimated 57 percent of adult Africans do not hold any kind of bank account, including mobile money. That leaves hundreds of millions of people without any formal financial services.
The lack of money is a key reason, as financial services are not yet affordable for all and sundry or designed for the needs of low-income earners. Barriers such as distance to financial services providers, shortage of documentation materials, and absence of trust equally contribute to creating the conundrum.
Banking institutions are expected to be the lead drivers of financial inclusion. But they are often hamstrung by the dearth of technological infrastructure and know-how needed to bring about a change. As other companies embrace auxiliary financial services, banks seem to be trailing behind and missing out on innovative revenue streams.