Have you heard of the term financial inclusion? Since 2016, the Financial Services Authority (OJK) together with financial services institutions and ministries have designated October as Financial Inclusion Month (BIK). Long before 2016, this term was often discussed in the world of finance.
What is Financial Inclusion?
Through a regulation issued by the OJK No. 76/POJK.07/2016 the year 2016, financial inclusion is the availability of access to various formal financial institutions, products, and services according to the needs and capabilities of the society to improve people’s welfare. It is supported by an increased public understanding of financial systems, products, and services, as well as the availability of formal financial services. Access to financial products, systems, and services according to the needs of society should consider several factors, namely affordability, effectiveness, efficiency, and quality.
Then, what are the indicators of financial inclusion? Referring to the Global Financial Inclusion Index, the indicators of financial inclusion are the number of account ownership per population, the number of accounts used for saving, and making transactions within the last year. Transactions include withdrawals, transfers, and loans.
What are the objectives of financial inclusion?
The financial inclusion program is initiated to close the gap in access to financial services between the unbanked society and those who have managed to access bank services. The improvement of an inclusive financial system is expected to close this gap. That way, more and more people will be able to enjoy access to formal financial services securely and affordably. Financial inclusion is not only related to formal savings ownership, but also includes access to other financial products and services, such as insurance, pension funds, and investment.
There are several reasons why people do not have access to formal financial services or products, namely:
- price barrier
- information barrier
- design product barrier (formal financial products, systems, or services that do not fit the needs)
- channel barrier
Inclusive finance does not only involve the government as the main regulator but also involves the private sector as well as the public who will be the consumers of these formal financial services and products. The expected benefits of financial inclusion include:
- create economic efficiency
- the establishment of financial system stability
- availability of new market potential for banks
- create sustainable local and national economic growth, and
- improving the welfare of the people targeted by the financial inclusion program, thereby reducing poverty.
What are some examples of financial inclusion programs?
In line with the financial inclusion program, some examples of programs that have been carried out by BCA include:
- BCA Simpanan Pelajar (SimPel) Savings
- Tahapan Berjangka SiMuda BCA
- BCA People’s Business Credit (KUR)
- Bangga Lokal
- And many more
BCA also supports easy access to banking services by providing online savings opening services and various e-banking facilities to facilitate transactions from anywhere and at any time. Did you already have BCA savings? Find the BCA savings products that suit your need by clicking the button below: