FINCA Microfinance Bank’s mission is to alleviate poverty and provide responsible financial services to enable individuals and communities. We believe that when equipped with essential knowledge, people can make well-informed financial decisions, hence contributing towards a financially educated society. Therefore, FMBL joins hands with the State Bank of Pakistan (SBP) to spread financial education across the country through National Financial Literacy Program (NFLP).
What is Financial Inclusion?
Financial inclusion refers to providing individuals and businesses with access to formal financial services that cater to their needs with dignity and fairness. These services include quality payments, savings, credit, and insurance options.
Benefits of Financial Inclusion:
1. Reducing Poverty
- Gaining access to secure banking services enables people to accumulate savings in a secure manner.
- Access to credit helps improve the asset base.
- Vulnerability of poorer households can be reduced by minimizing the impact of income shocks
- Helps decrease the proportion of low-return assets held by households for precautionary purposes.
2. Increasing Economic Growth
- Facilitating transactions boosts economic activity.
- Providing secure investment opportunities for all segments of the population.
- Savings are mobilized to meet expenses during difficult times.
- Economic growth booms by attracting foreign capital, including Foreign Direct Investment (FDI), portfolio investment, bonds, and remittances.
3. Promoting Stability
- Financial institutions get strengthened which broadens markets for service providers.
- Discouraging insecure savings practices, such as personal committees.
- Allocating capital efficiently among competing uses.
- Risk management is facilitated through various services, including insurance.
- Money transfers and transactions become more efficient and quicker.
Common Benefits for Poor & Marginalized Groups:
- Access to conventional and Islamic financial institutions and products.
- Opening bank accounts to document and track income and expenses contributes to a regulated economy.
- Facilitating tax filing for tax-related benefits.
- Fulfilling prerequisites for obtaining loans, credit cards, immigration visas, and more.
- Safeguarding savings through secure modes.
- Making appropriate use of funds with informed financial decisions.
- Access to a wide range of loans and investment schemes.
- Easy access to banking facilities through digital means like mobile banking, internet banking, and ATMs.
- Convenience of paying utility bills, transferring money, paying government taxes, and shopping at Point of Sale (POS) terminals online.
- Secure locker facilities for valuable items.