World Bank: Financial Inclusion to reduce poverty and boost competitiveness

Implementing financial inclusion in Peru, as part of its State policies, will allow the government to reduce poverty and improve business competitiveness, Financial Inclusion Global Practice Manager at the World Bank Douglas Pearce affirmed. 

Reducing poverty and allowing economic growth to benefit the entire population are the World Bank’s objectives, Pearce indicated.

In this sense, financial inclusion was considered “a key to ease access to those goals.” 

“Holding a [bank] account and having access to a diverse range of financial services has a very important impact when it comes to reducing poverty […],” Pearce told Andina news agency.

If the Peruvian government manages to transfer all types of payments, wages/salaries, benefits into bank accounts, the next challenge will be getting people to recognize the advantages of accessing such savings and financial transaction tools. 

“Afterwards, they will feel confident about using the account with the aim of accessing other services. Therefore, the great achievement is […] for the person to feel confident and prepared to access other financial services,” he highlighted.

On the other hand, he reminded many studies confirmed, if a person holds a savings account, the measure eases and helps to improve his/her economic situation.

Thus, “it has concrete effects regarding the level of income,” the Manager added.