Building Stronger Communities: The Positive Social Impact of Banking
5 minute read
In today’s interconnected world, access to financial services is not just a convenience but a fundamental necessity for individuals and communities to thrive. Despite this, in many countries across the world, underbanked people – most of whom are women – face significant barriers in accessing these services, which limits their economic opportunities and overall well-being.
Recognizing the importance of this issue, Zenus Bank has joined forces with the United Nations Environment Programme (UNEP) to promote financial inclusion for the underbanked on a global scale. Through this collaboration, we aim to raise awareness about the ongoing need for continued efforts in fostering financial inclusion and building stronger communities, while showcasing our own contributions in this field.
Understanding Financial Inclusion and Its Importance
Financial inclusion refers to the accessibility and availability of financial services to all individuals and communities, especially those who have been historically underserved. Its significance lies in its potential to deliver economic growth and drive sustainable development. Unfortunately, the underbanked face numerous obstacles. These include limited access to financial institutions, a lack of affordable alternatives, poor banking infrastructure, and stifling regulation – all of which discourage people from taking charge of their financial future and inhibit entrepreneurship.
Zenus Bank’s Commitment to Social Impact
Zenus Bank’s origins are closely tied to the challenges experienced by the world’s underbanked. In fact, the prevalent lack of access to reliable financial services in so many regions inspired the inception of our bank. Our core belief was and remains that providing individuals with the right tools would unleash their untapped potential and drive positive change.
We envisioned that by granting them seamless access to a mature and well-regulated banking ecosystem, their entrepreneurial spirit and aspiration to better their lives would be unleashed, to the benefit of all. This is what our creed, Banking beyond borders, is all about: ensuring that no one’s potential is wasted due to a lack of access to banking services.
Reaching the Underbanked: Zenus Bank’s Novel Approach
The way we decided to carry out this vision was to – in a sense – onboard the world into the American banking system. Since very few people could afford to travel to the US and navigate the complex maze of paperwork required by traditional banks, we would bring US banking to them! We concluded that doing so would allow them to compete more fairly with individuals from the rest of the developed world.
So, equipped with a belief that everyone deserves equal opportunities to participate in the global economy, Zenus set out to make the security, freedom, and convenience of the American banking system available to everyone. From a very early stage, we realized that our goal required innovative solutions to overcome their unique challenges. One of these challenges was geography. Onboarding people from the other side of the world doesn’t sound easy, and it’s actually even more complicated than it sounds!
Still, our team persevered. We leveraged cutting-edge technologies, created a proprietary operating platform that powers our remote application process, and in the end found a way to reach people in developing economies and offer them a premium digital banking product. By enabling the marginalized to participate in the global marketplace, we believe we’re helping to spread prosperity across underserved societies and secure a better future for them.
Banking Builds Stronger Communities
Although it may not be immediately apparent, financial inclusion plays a crucial role in building stronger communities. When individuals have access to banking, they have the means to pursue a better life for themselves, which usually improves the quality of life for everyone in their community. This happens in a few ways.
First, access to quality banking encourages economic growth and entrepreneurship. That’s because individuals earn the ability to save money, pay less for banking services, access more distant markets, and make investments. This access to capital fosters entrepreneurship and the establishment of small businesses within communities. Down the line, these small business owners contribute to job creation, increased tax revenue, and improved living standards for community members. With successful local businesses reinforcing the neighborhood economically, the overall economic resilience of the area increases.
Furthermore, banking services inspire people to think about their life goals and be more thoughtful with how they manage their money. When individuals have access to modern banking they can make more informed decisions, budget more wisely, and make longer-term plans. This improves the quality of life in a community through financial stability, reduced debt, and superior economic prospects. Financially empowered individuals are simply better equipped to support themselves and contribute positively to their society’s growth.
Financial Inclusion – A Better Future for All
Ultimately, financial inclusion serves as a powerful driver of economic growth and a catalyst for positive societal change. It is crucial to ensure that financial services are readily accessible to every individual, regardless of their background, economic status, or geographic location. In a world where this remains a pressing challenge, Zenus is committed to playing our part by providing people with the necessary financial tools to create a brighter future for themselves.
Our partnership with UNEP is driven by a sincere interest in the social impact of banking and its potential to level the global playing field. We appreciate the important work carried out by UNEP, and we remain dedicated to pursuing our own mission. Moving forward, we expect to continue making a tangible difference in the lives of the underbanked. And we look forward to welcoming more individuals onto our platform, enabling them to pursue their aspirations and contributing to the progress of marginalized communities worldwide.