Empowerment Through Inclusion: Transforming Financial Services for Those Left Behind
For marginalised and underserved communities, navigating life can be extremely challenging without access to financial services. Access to finance goes beyond withdrawing and depositing money. Investments, loans, and savings accounts are some financial tools (and opportunities) that can empower individuals to improve their lives by managing finances strategically and safely. Inadequate to no financial access can cause a severe setback especially for marginalised and underserved communities who are already experiencing multiple challenges in life.
Financial inclusion is about providing accessible services to all segments of society, especially those under the Leave No One Behind (LNOB) group. LNOB groups are often communities, and individuals often face poverty, inequality and discrimination, leading to their financial needs and planning being overlooked. By prioritising financial inclusion, institutions like banks and fintech companies can develop infrastructure that better caters to the unique needs of the LNOB group, equipping them to thrive in today’s world.
The Reality
Malaysia, like much of the world, is moving towards a cashless society. A Visa survey showed that nearly 91% of Malaysians have embraced cashless payments, evident in the proliferation of QR codes at checkouts and signs stating "No Cash Accepted." While this shift benefits many, it excludes those without access to e-wallets or bank accounts from participating in fundamental daily activities.
Accessibility remains a challenge in banking. While banks have made strides through online banking and expanding branches, there's still room for greater inclusivity. For people with disabilities, like the deaf, blind, or neurodivergent, as well as those with mobility impairments, accessing and utilising banking services can present significant hurdles. Additionally, stateless individuals and refugees often face barriers due to a lack of documentation or identification, further limiting their access to essential financial services. Moreover, Indigenous people in remote areas might struggle with geographical barriers and limited access to technology, making it difficult to reach physical branches or utilise online banking effectively.
Financial services are more than just transactions; they have the transformative power to boost local economies (SDG 8), enhance individual well-being, and empower people, especially those within the LNOB group, to improve their lives.
To address the urgent need for solutions that bridge the gap and reduce inequalities (SDG 10), Yayasan MySDG is partnering with Bank Negara Malaysia and the Financial Education Network (FEN). Together, we're engaging with NGOs and Social Enterprises (SEs) to explore how financial institutions can enhance financial inclusion for underserved communities. This collaboration aims to raise awareness among NGOs and SEs about existing financial education initiatives that could benefit their beneficiaries. It also seeks to gather on-the-ground insights into the challenges faced by these communities, enabling policymakers to identify and implement effective solutions.
Written for Yayasan MYSDG (source)
