That Third of the World that Never had Access to Banking

When was the last time you bought something with cash?

The difference between being fortunate and challenged has long depended on geography but today with growing communication capacity, global markets are at peoples disposal and prosperity is seeing less physical boundaries. Over one third of the world on the other hand, still does not have access to banking. In terms of essential services, I agree that banking is no more important than postal services , but maybe the reason with there’s no postal service is because there is no bank. Hey let’s be honest here, some places also just don’t want postal service.

In the case of those villages who want postal service, if we were to build a bank, would they then have the prosperity to have postal services? Obviously not and that’s why there aren’t bank everywhere. Of course, I am writing in allegory where the postal services signifies prosperity. People in these villages do have mobile phone though and with Moors Law and electronics continuously getting cheaper, entire generations are leap-frogging in technology. Imagine someone only ever have called someone using a cellphone or even voip. Those people are a growing number.

In saying that, cellphones and the internet have now become the ultimate postal service and what is┬ábanking if not a postal service for money. Well at it’s core, that’s what it should be…

People are now increasingly getting access to banking not through traditional brick and mortar but through technological platforms such as mobile banking and even bitcoin. I think what is particularly interesting is that some of these technologies make current established models obsolete. I think that it is definitely fitting that the third world usher in these new technologies of trade.

As seen by the World Bank Global Findex, the reaches of banking are spreading in all sorts of ways. One comes to wonder how this leap-frog in technological platforms will influence their prosperity…

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