World Bank, GSMA partner on universal financial access initiative
The World Bank Group and the GSMA, the global body representing nearly 800 mobile operators and 300 companies in the broader mobile ecosystem, have entered into partnership to achieve Universal Financial Access (UFA) by the year 2020.
The GSMA will add to the coalition a deep knowledge of mobile financial services, a proven ability to innovate, and a commitment to financial inclusion as a core component of its mission.
The GSMA has therefore pledged to support the creation of 500 million mobile money accounts over the course of the UFA initiative.
Report has indicated that some 2 billion working-age adults globally do not use formal financial services and extending access to finance to them is the first building block to build a better life.
However the World Bank Group – the World Bank and IFC – has committed to enabling 1 billion people to gain access to a transaction account through targeted interventions and expanding their network of partners to boost financial inclusion.
“The GSMA is pleased to announce its commitment to the Universal Financial Access initiative. Mobile networks are playing an essential role in achieving the Sustainable Development Goals, enabling new ways to address longstanding development challenges.
“Our commitment to support the creation of 500 million mobile money accounts reflects the scale of ambition needed to successfully close the global gap in access to financial services. We look forward to working closely with the World Bank Group and its UFA partners to ensure the conditions exist so that inclusive services, such as mobile money, can reach new heights,” Mats Granryd, Director General, GSMA said.
Kristalina Georgieva, Chief Executive Officer for the World Bank said, “It is great news that the GSMA is helping to close the gap in access to mobile phones – and mobile money accounts. This will be instrumental in bringing financial services to rural communities.
“The private sector brings the kind of innovation and investment needed to connect the remaining 2 billion people currently left out of the financial system.”
Speaking at a recent event for private sector partners committed to the UFA goal, Martin Holtmann, Manager for IFC’s Micro Digital Group said, “Achieving universal access is an ambitious goal – and one that can only be achieved with strong partnerships. It requires traditional financial institutions, telecommunication and technology firms to work together.
Digital and mobile technology can bring financial services to millions of people currently not included in the formal financial system, more easily and cheaply than traditional banking.”
The 32 UFA partners represent a cross-cutting network of banks, payment and technology companies, telecommunication firms, microfinance institutions, regulators, and industry associations. The UFA 2020 goal – recognizing financial access as a basic building block to managing an individual’s financial life – aims to provide all adults worldwide with access to a transaction account to store money and to send and receive payments.
Access to a transaction account is a first step toward broader financial inclusion, which helps poor families escape poverty and afford such essential social services as water, electricity, housing, education and health care. Access to financing can help small firms and medium-sized enterprises reduce risks, invest for growth and expand operations.
