Ajay Banga·TED@BCG
Financial inclusion, the digital divide and other thoughts on the future of money
Summary
No one thought about not only coronavirus spreading this year but also lockdown. We didn’t think that we couldn’t go out and even go to work. It shows the digital divide. It means that during COVID-19, some people could work, buy, study, and watch movies by using the internet, though, there are many people who couldn’t use the internet. They don’t have smartphones and it’s highly possible that they don’t have bank accounts thus they don’t have credit cards also. It means that they can do nothing during coronavirus spreading if they have even little money at home.
The speaker who is the CEO of Mastercard tells us that the number is two billion. Not educating them on how to use banks and credit cards is like giving inequalities and excluding them.
His explanation is that those people, public and private sectors have to cooperate to access banks, financial services, credit cards, insurance, and investment.
People who don’t have a bank account are not the people who don’t have money. They just don’t know how to use the internet, just don’t have a formal identity, or think that they don’t believe banks and credit cards. They just want to deal in cash like the speaker’s father. However, credit cards now have more credit than money. It’s also different from cashless and zero cash. Reducing cash in the economy is a good objective. Printing, securing, distributing, and using cash is a high cost. Reducing it efficiently works for our GDP and electronic forms of money are more transparent than money, though, many people don’t know, don’t believe it and they will be worked whether their data is deleted or not.
The speaker suggests that for saving poor people from coronavirus, it’s necessary to understand using credit cards. For increasing our economy, it’s necessary as well and the public and companies have to cooperate.
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