REVIEW
of
FINANCE -
Jan. 2018
23
Firstly,
developing new approaches
to financial services, innovation and
diversification of inclusive financial products
such as microfinance so as to meet the robust
needs of the beneficiaries be given priority in
society; improving access to microfinance for
individuals, farmer households, and creating
jobs through new products such as mobile
banking, integrated insurance and retirement
products of commercial banks, etc.
Secondly,
the diversifying of the network
of financial service providers to contribute
to enhancing access to capital, such as the
expansion of non-bank branch agents. Financial
infrastructure development via financial
technology renovation and utilization, financial
support for online supply chain, direct profit
transfer system, etc. so as to take advantage of
the rapid development of digital technology to
make financial services become achievable to a
majority of the economy.
Thirdly,
astablefinancialsystemwhichenhances
consumer protection measures and raises people’s
awareness through financial literacy, financial
management skills, and savings; disseminate
financial products, universalize financial security
solutions associated with digital transactions,
financial products and services identify.
Fourthly,
the development of the national
financial inclusion strategy towards a sustainable
and inclusive financial system through the
implementation of specific measures to help
achieve the objectives of social security and
increasemedium-termsustainability. The effective
national strategy should be defined on the basis
of the national characteristics that are shaped by
the beneficiaries using microfinance, the targeted
priorities to be implemented, and a balanced
legal framework. Bank account development
policies for the poor, adolescents and farmers
will be highly effective for economies, the World
Bank recommended. In addition, financial skills
and consumer financial protection are two of
the most important factors for the development
of comprehensive finance as said by Asian
Development Bank.
The national financial inclusion strategy, of
which finance for rural agriculture is a major
field, should be built on the specific needs of
Therefore, constraint in their access to banking
credit limits them from grasping the opportunities
to expand their business. It is still not improved
much in the ability to tackle income instability,
food safety, and targeted beneficiaries of social
assistance programs as well as services access.
Secondly,
the quality of financial services,
the financial system infrastructure constraints,
forecasting methods, analytic basis, consultancy
and monitoring are required to be upgraded to
refine the strategic instruments, and reform the
policy and monitoring tools. The application of
information technology need to be enhanced
to help reduce costs, increase access to the
data system, expand the range of access and
connectivity for suppliers and customers. The
challenge of coordination is laid accordingly to
improve access to qualified microfinance which
is characterized as a reasonable, accessible,
secure and fully integrated basic uses, bank
payment connectivity, and payment connection
between government, organizations, enterprises,
individuals, and households.
Thirdly,
the consumer protection and financial
skills of consumers are still limited. Therefore, a
sound financial system should remove barriers
to access to finance, strengthen confidence in
financial institutions, transparency in trade
transactions, etc.
Fourthly,
in the context of international
integration and global climate change, the
vulnerable people affected by external factors
are becoming more and more difficult for their
livelihoods and economic development. In order
to ensure social security and increase the resilience
of people affectedbypoverty andnatural disasters,
the inclusive finance development strategy is
needed to facilitate strong and synchronized credit
market development going along with financial
services comprised of high quality, accessible and
safe for everyone, especially for people living in
rural areas. Therebynational targets of sustainable,
inclusive social and economic development can
be achieved.
Moving towards financial inclusion
International experience has shown that
economies have a variety of modes of financial
development as follows:
