The unbanked: Financial crisis creates greater need for basic services

Rod Newing

Financial Times

14 June 2012

PA’s Graham Lloyd, financial services expert, is quoted in an article in a Financial Times special report on sustainable banking and finance. Graham talks about the challenge of banking for the financially disenfranchised as banks have moved to derisk.

The article discusses a recent report from the World Bank Development Research Group which found that the second most common reason for not having a bank account is that banks or accounts are too expensive. The article also claims that basic accounts are at risk from charges such as monthly account fees or charges for withdrawing cash at automated teller machines.

However, Graham finds that “withdrawing basic accounts is generally not happening. This is partly because banks do not want to be seen to be pulling out of such a needy sector when they are already on the defensive over their customer image and perceptions of greed.”

You can read the article in full here.

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