Peru FinMin: Financial Inclusion Strategy key to rural development

Peru’s Minister of Economy and Finance Alonso Segura said the National Strategy for Financial Inclusion, launched by Peruvian President Ollanta Humala, is essential to the development of rural sector nationwide.


"The National Strategy for Financial Inclusion will secure better access to financing and micro-insurance for rural sector’s crops and businesses, which is essential in order to enable further development and forge a better future," he said.


Easy Payment System


What the government is seeking to achieve under this strategy, he explained, is to bring simple and formal payment systems within easy reach for the population, so that they can conduct financial transactions of their business or any other activity safely and electronically.


"We seek that people from Tarma and across Peru have access to formal, cheaper sources of financing, so that they can afford to educate their children, run their business, and make payments as they deem necessary" he stressed.


He said the strategy includes several aspects such as financial education, consumer protection or the protection of vulnerable populations.


"This is to avoid abuse of the population," the government official pointed out.


National Strategy 


It should be noted that President Ollanta Humala signed on Tuesday a Supreme Decree that marks the beginning of the National Strategy for Financial Inclusion implementation, whose objective is to ensure more Peruvians have access to financial services, with products designed for citizens living in remote areas.


In addition, it will give more Peruvians the opportunity to do business, make payments or receive money without travel costs and safely, as well as save and borrow money, protect their families, start or expand their business, among other benefits.


The national strategy is focused on how to access and use high-quality financial services.


Peru Model 


It is worth mentioning the strategy includes an electronic money draft project called "Modelo Peru" (Peru Model), which will be ready in August this year and will allow users to perform banking transactions through their cell phones.


Previously, President of Peru's Banking Association (Asbanc) Oscar Rivera said pilot programs are being carried out in regions such as Cusco since April.


"This vehicle is going to enable financial inclusion and break informality," he said at that time.