Monday, 23 July 2018

Information and commentary for the small business banking industry

Who are the unbanked?

22 Jul

I found this World Bank infographic which outlines that 2.5 billion people don’t have a bank account.

Not surprisingly in countries that have poor infrastructure, low wages (77% of adults worldwide earn less than $2 a day…..), distance to travel.

A key issue is bank fees. Banks need to find a way to lower the transaction costs of money management. If you’re saving $1 a week it’s not worth the effort of walking to the bank, and minimum bank fees make it a no brainer to keep your cash under the mattress. Once a bank has invested in their infrastructure, the cost of processing trends towards zero as people move to online payments. I’d suggest;

  • Charge over the top for people still writing cheques and paying with cash
  • Make it almost free for anyone using online banking or mobile payments
  • Increase the share of the non banked in your country (students, kids with pocket money, low wage earners)
  • Provide the free financial literacy information you provide to turn them into profitable customers with added value and services

But basic banking should be close to free.



Glen Senior
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.

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