Digital Financial Services (DFS)- the emerging phase in the quest to deepen financial inclusion, payments system efficiency and transparency, has been described as a veritable tool that would benefit billions of people. It will also spur inclusive growth by $3.7 trillion to the Gross Domestic Product (GDP) of emerging economies within 10 years.
But the awareness level and adoption have become due for accelerated increase, as estimated two billion individuals and 200 million micro, small, and midsize businesses in emerging economies today lack access to savings and credit, according to McKinsey Global Institute.
DFS refers to ways in which basic financial services- payments, savings, loan or insurance products are provided, particularly to the poor, through mobile phones, the Internet and/or electronic cards/payment platforms.
Deputy Director, Financial Services, The Bill and Melinda Gates Foundation, Kosta Peric, said the digital payment system, besides enthroning efficiency, will reduce corruption, which is associated with cash payment.
For more on this story visit the following link: Digital financial services and fight against poverty
Source: The Guardian