Nigeria can learn from China, India and the United States on how governments have played a key role in promoting financial inclusion, particularly through strategic initiatives and digital innovation.
The World Economic Forum, in collaboration with the Wealth Management Research Center, PBC School of Finance, Tsinghua University, focused on government programs such as India’s Pradhan Mantri Jan Dhan Yojana (PMJDY).
Private sector contributions such as China’s digital banking platforms, the use of robotic investment assistants (RIAs), and the need for inclusive lending practices in the United States are important lessons Nigeria can learn.
The report said, “India is using the Pradhan Mantri Jan Dhan Yojana (PMJDY) to distribute COVID-19 relief money, and China is using the Pradhan Mantri Jan Dhan Yojana (PMJDY) to distribute COVID-19 relief payments; “We are introducing a digital renminbi to integrate, and also point out the role of the private sector in improving financial inclusion.” .
“China’s digital banking platforms are leveraging artificial intelligence (AI) and big data to expand access to credit for some small and medium-sized businesses. The need for inclusive lending practices in the United States. How robot investment assistants (RIAs) can democratize investing and improve financial literacy among ordinary people.
The report further found that financial inclusion is a key solution to reduce restrictions on access to financial services by providing access to essential financial services to all strata of society. . It also highlights global efforts in financial inclusion, highlighting government initiatives, private sector contributions, and technological innovation.
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According to the white paper, the success of India’s financial inclusion efforts during the pandemic is largely due to its established digital public infrastructure and banking sector collaboration.
PMJDY was launched in 2014 as a major initiative aimed at creating a bank account for every household. In the decade from 2014 to 2024, bank account ownership in India more than doubled, rising from 35 percent to 78 percent of the population.
A World Bank survey of 6,000 women PMJDY account holders found that 50% of women account holders opened their accounts to receive government benefits.
For China, the introduction of the digital yuan (e-CNY) was an important step in leveraging CBDC to promote financial inclusion.
“By reducing dependence on physical cash and integrating digital renminbi into everyday transactions, even in areas with poor network connectivity, e-CNY will help the unbanked and underbanked It has helped bring low-income individuals into the formal financial system,” the report found.
However, a study conducted by JPMorgan Chase Research Institute on the cost of home purchase loans reveals disparities in financial inclusion in the United States.
This report identifies and addresses these disparities and provides important insights that can guide policy and private sector efforts towards more equitable financial services.
“U.S. research on loan inequality and China’s use of RIAs have shown that the private sector can address financial fragmentation, improve access to financial services for small and medium-sized enterprises, reduce inequality in loan costs, and reduce financial literacy. “By democratizing investment opportunities for individuals, we will strengthen resilience and ultimately deliver a more inclusive and stable economic environment.”
