The Banking Executive Magazine - January 2023 Issue

Financial Inclusion in the Arab World aimed at teaching individuals about financial products and services, budgeting, and financial manage- ment. Another important aspect is to in- crease access to digital financial services and technologies, including mobile banking and online pay- ments. This can be done by provid- ing support for the development of digital infrastructure, such as internet connectivity and mobile networks, and by implementing regulations that encourage the development of digital financial services. Furthermore, Governments should consider implementing policies that encourage the growth of microfi- nance institutions and other organi- zations that provide financial services to low-income and under- banked populations, as well as cre- ating a supportive legislative and regulatory environment for fintech companies. The opportunity cost of ignoring fi- nancial inclusion in the Arab world is high. It undermines inclusive eco- nomic growth, and limits the poten- tial of individuals and businesses to fully participate in the economy. Low levels of financial inclusion can also exacerbate poverty and inequality. In addition, it will restrict the growth of the financial sector and the govern- ment will miss out on potential tax revenues and economic growth. On the other hand, financial inclu- sion can bring significant benefits for individuals, the financial sector, and the government. For individuals, it can provide access to credit, savings, and insurance products, which can help them manage risks and improve their financial well-being. It can also help them to build a credit history, which is essential for accessing a wide range of financial products and services. For the financial sector, it can lead to an increase in the num- ber of customers, as well as the ex- pansion of the types of products and services offered. This can result in in- creased revenues, reduced costs, and more stable financial systems SUCCESSFUL FINANCIAL INCLUSION INITIATIVES BY PUBLIC SECTOR IN THE ARAB WORLD 1. The Central Bank of Egypt's "Financial Inclusion Strategy": The Central Bank of Egypt has im- plemented a number of initiatives aimed at increasing financial in- clusion in the country, including setting targets for bank branch ex- pansion in underserved areas and working with mobile network op- erators to provide mobile banking services. The bank also intro- duced a national strategy for fi- nancial inclusion in 2016 to increase access to financial serv- ices, and has also launched a Na- tional Financial Literacy Program to improve financial literacy in the country. the BANKING EXECUTIVE 46 ISSUE 169 JANUARY 2023