Commercial banks reject small deposits, citing high transaction costs. Poor customers complain it is too expensive to maintain an account, often live too far from a bank branch and lack collateral for loans. Many people don’t understand financial products.
Across Asia, governments are experimenting with novel ways to widen access to financial services, from using mobile technology for transfers to allowing retail stores to take deposits in remote areas. In August, India’s Prime Minister Narendra Modi ordered state banks to open 125 million new bank accounts for poor people.”