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Preemployment card program helps boost financial inclusion: Director – Business

Preemployment card program helps boost financial inclusion: Director – Business

The government’s preemployment card program has prompted 728,000 underbanked people to board e-wallet platforms and create a bank account for the first time, hence aiding financial inclusion in the country, the program director has said.

Preemployment program executive director Denni P. Purbasari said that currently, there were 5.59 million preemployment card recipients across the country, from 36.6 million online registrants.

“Before joining the preemployment program, 13 percent [of the recipients] did not have an e-wallet or access to the bank, now they do. This 13 percent amounts to around 728,000 people,” Denni said during a press briefing on Wednesday.

She added that 76 percent of the recipients chose an e-wallet as their preferred means of receiving the incentive. Recent data also show that in total, there are around 4 million preemployment card recipients who have an e-wallet account.

Recently, the government added e-wallet DANA as one of its partners in disbursing preemployment cash assistance to participants, alongside other platforms such as GoPay, OVO and LinkAja.

“With the addition of DANA, we are giving the [preemployment card] recipients more e-wallet options to use as an incentive channel,” Denni said.

With an economy contracting 5.32 percent year-on-year (yoy) in the second quarter, the government is confronted with job losses nationwide.

Around 3.7 million individuals have lost their jobs so far this year due to the pandemic, according to data from the National Development Planning Agency (Bappenas), a number that is expected to hit around 10 million by the end of the year.

With a budget of Rp 20 trillion (US$1.3 billion), the preemployment card program is aimed at combining social assistance with upskilling for people affected by the COVID-19 pandemic, including workers and small business owners. It offers monthly assistance of Rp 3.5 million for four months to cover training costs and

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Nigeria: As CBN, Efina Unveil Framework for Women’s Financial Inclusion

Nigeria: As CBN, Efina Unveil Framework for Women’s Financial Inclusion

Lagos — With the growing global focus and debate over gender-based discrimination across almost all levels of human interaction, forward-thinking leaders are clamoring for the needed change to close the gender gap.

According to UN Women, over the past decade, 131 countries have passed laws to support gender equality. However following the outbreak of the Covid-19 pandemic, some of these gains may have been lost, particularly with regards to the financial inclusion and economic empowerment of women.

Several studies confirm the disproportionate impact of the COVID-19 pandemic on women, pushing them out of both formal and informal employment, businesses and in some cases entirely from the financial system.

These are some of the thoughts that led to the development and launch of the Framework for Advancing Women’s Financial Inclusion in Nigeria by the Central Bank of Nigeria (CBN) in partnership with the Financial Inclusion Special Interventions Working Group (FISIWG), Enhancing Financial Innovation and Access (EFInA) and Women’s World Banking (WWB).

At the e-Launch of the Framework, which held recently, Deputy Governor, Financial System Stability, CBN, Mrs. Aishah N. Ahmad, presented a clearer picture on financial inclusion of women in Nigeria.

“According to EFINA, the female financial exclusion rate was 40.9 per cent in 2018 compared with 32.5 per cent for men. This gap may have widened as a result of the coronavirus pandemic given women’s primary responsibility for caregiving, likelihood to be frontline health workers and their predominance in the informal sector which has been severely affected by the coronavirus induced-lock down”

She further stated that, “the negative effects of the pandemic on women’s financial inclusion have manifested in the context of existing structural challenges which have kept women out of the financial system such as cultural norms, lower education and financial literacy levels, poverty, high cost of financial services,

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CBN, EFInA, Women’s World Banking unveil framework for women’s financial inclusion

CBN, EFInA, Women’s World Banking unveil framework for women’s financial inclusion

BY DAPO AKINTOYE

With the growing global focus and debate over gender-based discrimination across almost all levels of human interaction, forward-thinking leaders are clamoring for the needed change to close the gender gap. According to UN Women, over the past decade, 131 countries have passed laws to support gender equality. However following the outbreak of the Covid-19 pandemic, some of these gains may have been lost, particularly with regards to the financial inclusion and economic empowerment of women. Several studies confirm the disproportionate impact of the COVID-19 pandemic on women, pushing them out of both formal and informal employment, businesses and in some cases entirely from the financial system.

These are some of the thoughts that led to the development and launch of the Framework for Advancing Women’s Financial Inclusion in Nigeria by the Central Bank of Nigeria (CBN) in partnership with the Financial Inclusion Special Interventions Working Group (FISIWG), Enhancing Financial Innovation and Access (EFInA) and Women’s World Banking (WWB).

At the e-Launch of the Framework, which held recently, Mrs. Aishah N. Ahmad, Deputy Governor, Financial System Stability, CBN presented a clearer picture on financial inclusion of women in Nigeria. “According to EFINA, the female financial exclusion rate was 40.9% in 2018 compared with 32.5% for men. This gap may have widened as a result of the coronavirus pandemic given women’s primary responsibility for caregiving, likelihood to be frontline health workers and their predominance in the informal sector which has been severely affected by the coronavirus induced-lock down”

She further stated that “the negative effects of the pandemic on women’s financial inclusion have manifested in the context of existing structural challenges which have kept women out of the financial system such as cultural norms, lower education and financial literacy levels, poverty, high cost of financial services, concentration of women

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JN’s UK bank to address financial inclusion and de-risking issues for Diaspora

JN’s UK bank to address financial inclusion and de-risking issues for Diaspora

The Jamaica National (JN) Group, following the launch of its latest subsidiary company— JN Bank in the United Kingdom (UK), has cited financial inclusion as well as the pursuance of correspondent banking services for Caribbean banks as being atop the list of issues to be addressed for people of the Diaspora.

Chief executive officer (CEO) of the JN Group, Earl Jarrett, in referring to a 2017 UK financial report, said that there were some 1.23 million people in Britain who were underserved or not served by banks.

“Financial inclusion is not just a Caribbean problem. In the UK, there is a working paper on how they are going to improve on financial inclusion. It is estimated that four to five per cent of the working population does not have access to banking services and those are primarily persons who have small businesses; persons who don’t feel welcomed in the mainstream banking environment,” he stated.

The JN UK bank, which was launched on October 8 after some two years in the making, represented an historical move for the company which saw them becoming the first Caribbean-owned bank to be established in the UK. This, after UK regulators had granted a full banking licence to the bank last year.

“It is our hope that through the JN Bank, we will be able to provide banking services to those individuals, whatever their racial background or wherever they are from, so they too can achieve their personal objectives,” Jarrett also said while speaking at the virtual launch event on Thursday last.

 

DIGITAL OPERATIONS

Jarrett also disclosed that the operations of bank will be mainly digital, with a physical branch to be located in Brixton, south London which can be used for community activities after banking hours.

“Digitalisation is a true enabler of inclusion.

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Reviewing strategies for financial inclusion

Reviewing strategies for financial inclusion

EIGHT years after the Nigerian authorities introduced a programme to deepen financial penetration among the citizens, the country is still far off from achieving its ambitious target. In a new report, the Central Bank of Nigeria admits that the country is not on track to meet its lofty objective of bringing in more Nigerians into the formal financial net. With high hopes, the CBN and the Enhancing Financial Innovation and Access, a research and advocacy organisation, teamed up in 2012 to reduce Nigeria’s high incidence of financial exclusion. Seeing that the goal has not materialised, the regulator and its partners have to embark on a fresh plan of action, based on critical reviews of the existing approaches and multiple innovations on what else should be done.

Research shows that countries with deeper levels of financial inclusion — defined as access to affordable, appropriate financial services — have stronger GDP growth rates and lower income inequality. Identified as an enabler for seven of the United Nations’ 17 Sustainable Development Goals, the World Bank considers financial inclusion a key building block to reduce extreme poverty and boost shared prosperity. Crucially, more than 55 countries have made commitments to financial inclusion, and more than 60 have either launched or are developing a national strategy, the bank adds. In India, a digital platform is set to cover 1.2 billion citizens. Singapore is regarded as running a highly successful financial inclusion project in South-East Asia. “Digital financial services are expected to generate $38 billion in annual revenue within the region’s six largest markets by 2025; the full potential could increase to $60 billion,” a 2019 report titled, ‘Fulfilling Its Promise – The Future of South-East Asia’s Digital Financial Services Industry,’ stated.

Although Nigeria has taken a step towards improving financial inclusion, things are not working

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