Access to Bank Account and Payment Services

The link between finance and growth has been thoroughly studied by several analysts from a macroeconomic perspective, with theoretical approaches, methodological issues and empirical analyses that are still being debated1. In relation to developing countries, the study of access to financial services by families and individuals is fairly recent. In this context, both private and social benefits have been shown to accrue from improving access to financial services, such as promoting economic growth and improving income distribution. In addition, it can play a key role in reducing risk and vulnerability. In contrast, it is access to bank relations that has been more recently studied within developed countries. Since the 80s, special attention has been devoted to the issue of financial exclusion, seen as part of the wider issue of social exclusion. This has been particularly true of the US, as well as some European countries - the UK and France in particular. The issues have proved to be multifaceted with a range of different solutions proposed. The experience of several countries in addressing these issues is described later in this chapter. Both theoretical and practical studies have been undertaken. At a theoretical level, studies have looked at the economic, sociological, institutional and behavioural reasons why some market segments have difficulty to accessing the financial system. They have also addressed the question of appropriate policy responses. From a practical point of view, the studies have looked closely at who exactly are having access difficulties, the reasons for these difficulties, possible solutions to meet at least the most basic needs, the types of institution most able to play a role in financial inclusion. Several trends in the banking system and, more generally, in the wider institutional framework have tended to exclude people with low-moderate incomes, who have tended to be increasingly lumped together with the poorest elements of the population.