For any society to thrive, there has to be financial inclusion on all levels. For context, the World Economic Forum quotes that “financial inclusion” is key to creating a fair, equitable society as well as a thriving economy.”
And according to the World Bank, “financial inclusion” means that individuals and businesses have access to useful and affordable financial products and services that meet their needs — transactions, payments, savings, credit, and insurance — delivered responsibly and sustainably”.
Around 1.7 billion adults worldwide do not have a bank account, making it difficult for them to save securely or access emergency credit. And 57% of Africans do not hold any kind of bank account, including mobile money accounts.
By making sure that financial inclusion becomes a reality in both developed and developing nations, a wide range of issues will be addressed, such as economic development, employment, poverty, and income equality.
The challenges of promoting financial inclusion in poorer countries, however, are even more acute because of the concerns and limitations that are present there.
There have been high growth rates in many African regions over the past decade, and many have aspired to structural reform, but this hasn’t translated into significant reductions in poverty and social inequality.
It has yet to provide adequate opportunities for low-income households and other vulnerable groups to enhance their living conditions.
Some regions in Africa have been performing well in terms of economic metrics, but the young, low-income earners and other vulnerable groups have notably been deprived of work opportunities and other methods of establishing livelihoods that would allow them to escape poverty.
Inaccessibility to financial services makes it more difficult to remain financially stable during adverse times.
It prohibits people from securing and maintaining their level of living, and from making efforts to enhance their financial health, such as through long-term financial planning, credit access, and insurance.
Sub-Saharan Africa has a population of over 1.1 billion people, accounting for a large portion of the worldwide population. It also has the world’s youngest total population, with a median age of under 19 years.
Inherently, extending financial inclusion to the younger generation is essential in ensuring that economic growth is inclusive and sustainable.
This is where establishments like MAX come in and play an invaluable role.
MAX and other financial institutions are beginning to use neoteric data to provide credit ratings to consumers. This allows them to qualify for loans and other lending products even without a prior formal relationship with a bank or a previous credit history.
Within MAX’s framework, this presents itself through assisting them in financing brand new high-performance low-emission vehicles that they would otherwise be unable to obtain due to a lack of credit.
In explaining MAX’s current operational blueprint, CEO, Adetayo Bamiduro, said, “We have an immediate goal to scale from our current 7,000 drivers to 100,000 by the end of 2023, and to grow our footprint to ten cities across Africa.” “We are also committed to adding to the services available on our technology platform — including more advanced financial services over the next year.”
MAX had already set up its systems to accept 100% of remittance payments from drivers digitally to promote its financial inclusion scheme. This was previously unheard of, with a huge majority of African commercial drivers being financially and digitally disenfranchised.
MAX provides drivers with access to all of these services through a single platform. And in keeping with our history of continual innovation, the digital portal will soon also allow the Champions to send and receive money, and will eventually allow them to do all of their financial transactions on it.
Using cutting-edge strategies, MAX has sought to assuage the social and economic inequities posed by the financial exclusion of young Africans while also availing them of opportunities that improve their standard of living as well as that of their families.
