CGAP welcomes G20 assistance for the unbanked

Jun 29, 2010

The Consultative Group to Assist the Poor (CGAP) has welcomed a commitment by the G20 group of nations to help improve financial services to the poor and unbanked across Africa and elsewhere in the world.

At a summit in Toronto last weekend (June 26th and 27th), government leaders drew up the Principles for Innovative Financial Inclusion. Acting Chief Executive Officer for the body Alexia Latortue noted the new proposals will help individuals "who are unable to open a bank account, get insurance, or receive loans that would help them save for the future and invest in their homes or businesses".

Included in the principals outlined by the G20 are incentives to encourage financial institutions to offer banking services, adequate customer protection, product diversity and strong leadership. Improving financial services for poor people was on the agenda at a recent CGAP summit in Dakar, Senegal, where the use of technology such as mobile banking to improve access to finance was discussed.