> Posted by Anita Gardeva

Traveling hours to reach the nearest bank branch is common and expensive for the poor

Word of the Week – Branchless Banking: Banking models and delivery channels that deliver financial services to clients through outlets other than full-service bank branches.

Branchless banking refers to mobile banking, correspondent and agent banking, electronic banking, and the use of ATMs.  The appeal of branchless banking in context of financial inclusion is its ability to close the location gap and increase affordability through automation.

Spotlight Fact: Studies estimate that branchless banking solutions, such as mobile banking, can drive down the cost of banking for clients by up to 5 to 10 times, just by eliminating the need to travel to the nearest branch. On the side of the providers, estimates show that mobile banking can reduce the cost of delivering financial services by more than 50 percent.

Suggested Resources:

For more financial inclusion terms, please visit the Financial Inclusion Glossary.

For more information, sign up for updates from the Financial Inclusion 2020 campaign.

Flickr credit: moyerphotos