Why Partnerships are key to Achieving Financial Inclusion.
The pandemic has strengthened the need for partnerships in many industries, including the financial services industry. Although an unprecedented event, it has drastically changed the perception of perception among many individuals and businesses.
In layman’s terms, a partnership happens when two or more parties with mutual interests come together to achieve something. These parties, also known as partners could be individuals, businesses, government organizations among others. Involving in a partnership has proven beyond doubt many benefits to the parties involved if properly implemented.
Enabled by technology, the impact of a strategically planned partnership has repeatedly turned out to be monumental and is evident in the financial services industry. One of such successful partnerships is the joint efforts of the International Finance Corporation (IFC) and Mastercard under the ‘Partnership for Financial Inclusion’ to extend financial inclusion for millions in Africa. This has resulted in access to new digital financial services for more than seven million users on the continent over the past six years.
At Rural Inclusion, we engage in exceptional partnerships to reach our goals. We partner with financial service providers to empower rural communities with financial education. In Uganda, we have partnered with a number of financial institutions to address the financial needs of rural consumers who have often been given less attention.
How does partnership impact financial inclusion?
With many African countries still striving to reach their financial inclusion target (s), the onus is also on financial service providers, including fintechs to implement workable strategies that will yield impact. In such a time as this when technology is constantly evolving and changing the industry, it becomes quite stressful for one organization to pull their resources together alone to achieve great results.
When financial services providers (microfinance institutions, banks and mobile network operators) partner among themselves, they are well suited to develop and test innovative business models for financial inclusion. They are able to broaden their reach, access resources, overcome hurdles (such as regulations) and many other benefits.
Efficient partnership within the financial services industry creates opportunities for the expansion and advancement of digital financial services.