BUDAPEST: Chairman of the World Union of Arab Bankers Joseph Torbey said one way to combat poverty in the Arab countries is to provide low-cost financial services to low-income families.
“Financial inclusion can help individuals cope better with poverty, especially the challenges of irregular income and occasional large bills,” Torbey told participants in an international Arab Banking summit held in the Hungarian capital.
Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available nor affordable.
The World Bank estimates that there are more than 2 billion people in the world who do not have bank accounts or the ability to receive financial services due to the high cost offered by commercial banks.
“In the current geopolitical conjuncture, some Arab countries are undergoing painful moments, deeply rooted in problems such as unemployment, poverty, financial exclusion of large segments of the young and dynamic population,” he said.
“In these regions, fighting poverty should necessarily pass by education and financial inclusion, which are key elements to sustainable development and growth,” he added.
Torbey stressed that banks should also play a role in fighting poverty in the region.
“In this context, the banking sector is called upon to contribute to resolving the problems caused by poverty, unemployment, illiteracy and meager economic growth rates by ensuring financial inclusion and education, and giving consumers access to the financial systems.”
He also called for financial education at schools in the Middle East.
“Financial education could even start at schools to ensure the acquisition of financial skills by new generations, equally as mathematics and sciences.”
