Reaching the Excluded Responsibly: The MasterCard Foundation's Strategy for Financial Inclusion

innovations / volume 10, number 1-2 © 2015 Ann Miles Anyone working in international development knows that there is no magic solution for reducing poverty and improving the lives of people affected by it. The story of development is one of persistent and incremental change that enables people living in poverty to overcome barriers and inequities and empowers them to prosper. Financial inclusion is a critical element of such change. What drives that incremental change? While there are many factors, innovation is prime among them. Finding, fostering, and spreading the word about new initiatives that are shown to be effective, including financial inclusion initiatives, is essential. This usually involves putting end-users, the ultimate beneficiaries of financial inclusion programs, at the center of all planning. That is why we at The MasterCard Foundation have client-centered innovation at the heart of our programs, particularly those that promote financial inclusion. The challenges of financial inclusion are well known, as the most recent Global Findex report attests: some two billion people in the world, mostly in developing countries and emerging economies, have no access to the basic financial products and services that many of us take for granted. For people living in poverty, not having the ability to save, borrow, or move money reliably, easily, and inexpensively is a significant impediment to improving their lives1. The good news is that ever more people are finding themselves financially included. While the Findex report outlines the work that still needs to be done, the number of people around the globe who have access to financial products and services has increased by about 20 percent in the past three years—some 700 million adults—bringing the rate of the world’s banked from 51 percent to 62 percent. Why is that good news? Because access to basic financial services is a fundamental necessity that helps people achieve their economic and personal goals: opening a new