Technology plays a pivotal role in the process of inclusion. In Nepal, the potential of mobile banking has not been tapped to the extent desired. With deeper penetration of mobile technology, mobile banking has great prospects of increasing accessibility of financial services to the poor, particularly in remote areas where bank branches cannot be opened owing to infrastructure bottlenecks. Likewise, a promising technique to expand financial inclusion among the unbanked is to digitize payments by moving cash payments into accounts. It can improve the efficiency of making payments by increasing the speed of payments and by lowering the cost of disbursing and receiving them. Digital financial services can make life easier for customers by allowing them to transact locally in tiny amounts and better manage their uneven income and expenses. Digital channels reduce transaction costs, increase transparency, and raise access to formal financial services that help people break the cycle of poverty and drive inclusive economic growth.
In Nepal’s case, it is possible for digital financial inclusion to become a game changer for unserved and under-served low-income households as well as micro- and small enterprises in the country.
It’s help to Promotion of Financial Literacy Programs in Nepal. Financial literacy remains the key to beneficial and continuous linkage with formal financial system. It must be promoted for financial inclusion to be sustainable, with people saving, obtaining loans, investing and insuring themselves and their families against financial shocks. Financial education requires a multi-stakeholder approach to drive costs down for greater sustainability and to reach all pockets of society. Likewise, it deems crucial to educate the people, especially the rural population, on the significance of saving. For this, financial literacy camps could be organized regularly in collaboration with the district development committee or village development committee with the aim of familiarizing the various financial products and the advantages of having an account with a formal financial institution. Likewise, educating people about financial risks can prevent them from investing in dubious schemes. Similarly, financial literacy is essentially linked to consumer protection. With more knowledge people are less likely to fall victim to unscrupulous moneylenders, or financial service providers who might be offering inappropriate products, with exorbitant interest rates and no transparency. Still, more research and evaluation is required to further explore the relationship between financial literacy and financial inclusion, and to ascertain the impact of financial education initiatives on financial inclusion.
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