According to the World Bank, an estimated 2 billion adults worldwide do not have a basic bank account. The majority live in emerging countries and in extreme poverty. However, Mastercard have published an interesting report on A process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... in Europe, which demonstrates that there are unbanked people in mature economies as well.
139 million unbanked in Europe
The Mastercard study estimates that 139 million adults in Europe lack access to a basic bank account and electronic A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. instruments, based on data from the World Bank. Whereas the share of adults who have a bank account reaches 100% in Switzerland, 99% in Sweden or the Netherlands, it is only 72% in Hungary, 70 % in Poland and 63% in Bulgaria.
33% of the unbanked are employed
The number of unbanked people who are in employment has actually increased from 28% in 2013 to 33% in 2016.
The majority of the unbanked have been in their current country all their life
87% of the unbanked have lived their whole lives in their current country. The number has increased since 2013. So much for the idea that financial exclusion is due to immigration or lack of documentation.
One in five people are unbanked because they lack trust in financial institutions
Mistrust in the banking sector is an important factor behind financial exclusion. One in five people, cite this as one of the main reasons why they do not have a bank account. One in ten say it is the main reason.
The young are more likely to be financially excluded
Being unbanked is not synonymous with being old. Far from it. 32% of the financially excluded are aged between 18 and 34. 9% are students. In the majority of cases, lack of From the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... is the main reason why they do not have access to a bank account.
Mastercard concludes that the road to financial inclusion is digital. Perhaps. That may prove challenging however, as the report emphasizes the negative association between conventional financial services and online technology.
Meanwhile let’s make sure that these people have access to Money in physical form such as banknotes and coins.. Does it make sense to distribute social benefits electronically when the beneficiaries need cash? Does it make sense to restrict the usage of cash when so many people rely on it?
 In 2013, 767 million people lived on less than $1.90 a day (World Bank estimates).