Financial Inclusion-Obstacles To Be Overcome
Financial inclusion is nothing but to ensure the availability of financial securities to each and every individual by combining the needs of the individual with that of using financial services which are affordable and convenient to the people. The financial services may include the basic services and transactions offered by the banks and also other additional services like credit and insurance options to the customers.
But this can be only achieved when the individual has a separate bank account for himself and this is not possible since most of the people are not aware of the banking options and this is one of the factors which affect successful financial inclusion.
Apart from this, the following are the major obstacles for financial inclusion and a full report can be drawn to obtain a better knowledge from various other sources regarding financial inclusion too;
- Lack of financial knowledge: The people involved in the business and the customers should have adequate knowledge about the financial services and also about the basic transactions then only the financial inclusion will be successful. Hence it is necessary to educate them regarding the financial options and services so that they avoid making mistakes.
- Service availability: The services are available in the urban areas but when we look into the rural areas, the financial services were not up to the significant level. It is really hard to find financial services in rural areas. Only advanced technology can develop financial services in rural areas with limited facilities were possible. Mobile phones can help customers and businesses in these areas to do transactions and other additional services.
- Distrust: Distrust is one of the major obstacles for financial inclusion to be successful since it is the service provider’s duty to establish trust and confidence in the minds of the customers and business people. If the service providers are not performing well and making charges for the transactions and services, then it is difficult to overcome this obstacle in the minds of the customer.
- Affordability: The service providers should be able to serve the customers in a better and convenient way. But they were ready to charge for each and every service they are offering at least a minimum amount from the customers. But technology and financial inclusion can bring about significant changes in the field of banking and services.
- Eligibility: In order to open a bank account, at least you need to possess the identification proof which gives the complete information regarding the customers are required. Though everyone possesses proof, they might not have adequate financial knowledge to enjoy the financial services.
- Access to credit: It is really hard to get loans and other financial services when you have low credit and it is hard to regain a good credit limit after attaining a loan and unless and until the loan amount is repaid by you properly or else your credit will be at stake.