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> Posted by Joshua Goldstein aka Mr. Provocative

#185088551 / gettyimages.com

Today, in 2070, with advanced robotization of jobs in all sectors, “work” has become a minority pursuit and financial inclusion is mostly understood to mean government cash transfers. Other financial products like loans are anachronisms of a bygone era. The government knows that such transfer programs like “unemployment benefits” are the only way to keep the anemic engine of demand alive for the goods and services that are now produced by a smaller and smaller sliver of the population who live in Byzantine splendor far removed from the humdrum circumstances of the vast majority. (Indeed in 2070, “unemployment” is a forgotten term from an era when “work” was a defining feature of life.) And the lack of work extends to what is today called “knowledge economy” occupations as well as almost every other category of white and blue collar work. Now, all humans enjoy a pension plan that goes into effect at birth and is more than enough to meet basic consumption needs. The benefit ends only with death by lethal injection at the mandatory termination age of 120.

Am I painting a scenario that seems wildly implausible? Perhaps.

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> Posted by Jeffrey Riecke, Communications Associate, CFI

A few days ago news broke that Facebook, the social media giant with over a billion users worldwide, is making preparations to begin offering international money transfer services. Although the development has been dismissed by Facebook as rumor, the prospect of this enormous network enabled for money transfer and the huge global need for this service makes this a story worth following.

The news, initially shared by the Financial Times and sourced from individuals involved in the proceedings, indicates that Facebook is weeks away from securing regulatory approval from Ireland’s central bank to allow its users to store money on the site and use it to pay others. Facebook’s headquarters for Europe, the Middle East, and Asia is in Dublin. If approved, Facebook would be permitted to issue units of stored monetary value represented as “claims” against the company. Regulation in this area pertaining to Europe would allow approval in Ireland to green light services throughout the entire continent. The Financial Times also mentions that Facebook has had discussions about potential partnerships with several start-ups that offer international money transfer services through both smartphone and online platforms.

Facebook’s reach is massive, 1.23 billion at the end of last year, and it’s becoming increasingly diverse. Last week, thanks to increases in internet access and mobile penetration, the company achieved a milestone in India: 100 million users. Some analysts say by the end of this year India will surpass the United States (with 180 million) as the country with the most Facebook users. The social media site is big elsewhere in Asia, too. It is the most popular social network service in all but six of the region’s countries. After the US and India, Facebook’s largest countries by-users include Brazil, Indonesia, Mexico, Turkey, the United Kingdom, and the Philippines. Facebook has a large presence in Africa, as well, with 13 million users in Egypt, 9.4 million in South Africa, 5.3 million in Nigeria, 1.8 million in Kenya, and 1.4 million in Ghana.

Like Facebook, remittances volumes are increasing on the whole around the world. In a new brief on remittances and migration released last week by the World Bank, it’s shown that remittances to developing countries reached about $404 billion in 2013, an increase of 3.5 percent over 2012. Annual growth is expected to increase to an annual average of 8.4 percent over the next three years. In 2013, India received the most international remittances with $70 billion, followed by China with $60 billion, and the Philippines with $25 billion.

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> Posted by Sonja E. Kelly, Fellow, CFI

There’s a lot of data out there. And some of us are brave enough to use it (including you, my friend).

Recently we released an interactive Data Explorer tool and individual Country Profiles, allowing users to visually explore financial inclusion data in comparison with other development indicators in one central location. You can see our analysis of some of the data, but more importantly, we would like to invite you to explore the data for yourself.

For those interested in financial inclusion figures in specific countries, regions, or income groups of interest, visit Country Profiles. There we display data from the Global Findex along with demographic data relevant to understanding financial inclusion across the lifecycle. As we continue our own analysis of global trends, we will add figures on income, urbanization, technology, and more for each country.

Click on the financial inclusion bars to see a breakdown of the data by client segment, and use the tool to understand why or how people use financial services in particular countries. At the bottom of the page, you can interact with the demographic data by scrolling through the years to see past and projected population trends from 1950 to 2100. (This is very cool.)

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> Posted by Ignacio Mas, Independent Consultant

Google Trends is a public web facility which shows how often particular search terms are entered in Google relative to the total search volume, globally or for individual countries, and for defined time periods (after 2004). This gives us a good perspective into how people are approaching our industry. I looked up some of the most prominent financial inclusion terms, and found some very interesting things.

Industry rebranding. The first graph below shows that the search term “microfinance” has been much more popular than “microcredit” over the last eight years. (In each graph, all data points are scaled relative to the highest value on that graph – see methodological note at the end of this post.) “Microcredit” surged in late 2006 with the granting of the Nobel Peace Prize to Muhammad Yunus. Since then, searches on “microcredit” have been decreasing in relative terms and, by contrast, the new term “financial inclusion” has been gaining ground and is now comparable in its use as a search term to “microcredit.” Still, despite strong attempts from many quarters to rebrand around the financial inclusion label, it has not yet taken off.

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> Posted by Sergio Guzmán

idea_icon13

Google just launched an initiative called Project 10^100. Out of 154,000 user submitted ideas to make the world a better place, Google narrowed down the list to 16 major ideas and you can vote for one of them!

I would like to call your attention to one idea in general, it is to “Build better banking tools for everyone” Read the rest of this entry »

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