Access to finance can improve the life of the poor

Modern conveniences like e-money accounts, debit and prepaid cards, and low-cost accounts can go a long way to increasing financial access, reducing poverty, and empowering the poor. For example, people who rely on government benefits can use reloadable payment cards to buy necessities, withdraw cash from an ATM, or engage in a variety of other financial transactions.

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Electronic payments also have the potential to make businesses more efficient. Unlike cash, they provide essential data to those along the supply chain about what's selling and what isn't or the amount of inventory in stock. This data can also be used to build risk models that enable lenders to issue sound loans to people with limited or no credit histories.

Distributors in emerging markets spend up to two hours a day just handling and processing cash. Moving to digital payments could save valuable time and money. With innovations like that in mind, we're exploring ways to boost financial inclusion through initiatives in countries where financial inclusion will achieve the biggest impact - India, China, Indonesia, Pakistan, Nigeria, Brazil, Mexico and Vietnam.

More than 2,000 years ago in ancient Greece, Archimedes said: "Give me a long enough lever and a place to stand, and I will move the earth." We believe financial inclusion is one of the levers with the greatest potential for economic and social progress in the 21st century.

We hope the private sector seizes the opportunity - not as philanthropy, but as part of a new model to succeed commercially while benefiting society at large. It's possible to do well and do good. Let's all strive for that.

Jin-Yong Cai is executive vice-president and CEO of International Finance Corporation, a member of the World Bank Group, and Ajay Banga is the president and CEO of MasterCard.

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