But “compliance hurdles are just one of the barriers to improving overall financial inclusion rates. Financial institutions must also consider affordability and whether it is appropriate and ethical to offer certain services to certain individuals. It is heartening to see that financial inclusion is a priority for financial institutions around the world, and that despite some of the obvious challenges, there are tools available to improve outcomes for individuals and institutions alike.” the report said.
Part of the use of compiling better data on potential clients is to increase the ability to convert the unbanked to a banked customer. “Financial institutions need the ability to identify consumers and understand their risk profiles, both to maintain regulatory compliance and support extending financial services to consumers. The more institutions understand about consumers, the easier it is to offer appropriate financial services. However, 69% of respondents agree that the unbanked or underbanked are harder to onboard than other types of customers and businesses due to lack of data,” the report concluded.
“Financial institutions have clear responsibilities to verify customer identities and ensure compliance with national and international regulation,” Bailey said when the report was unveiled. “Rejecting potential customers due to inefficient or manual processes rather than regulatory reasons can be detrimental to genuine individuals trying to access financial services. With robust data and the right technology and processes in place, institutions can help improve global rates of financial inclusion without compromising on compliance.”