5 Reasons Why Financial Services is Important for Rural
Financial Services for Rural
Finance
Offering financial products for the rural populace.
Many financial institutions focus on urban areas. Their products are tailored to meet the urban worker. Often, these kind of products are not really suited for the rural for varying reasons. But it’s important to understand that the rural populace is just as important as those in the urban.
In this short piece, we look at why financial products to the rural is important and why companies like MiBank go out of their way to serve these people.
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- Access to Credit: Many of those in the rural in Papua New Guinea are subsistence farmers. They live in a cash economy. Providing them access to credit enables them to invest in equipment, seeds, and other inputs necessary for productivity and growth. You see, when you go to the market or even supermarkets, many, if not all of the fresh fruits and vegetables come from the rural. Enabling them access to credit to grow their business affects the quantity and quality of the fresh fruits and vegetables you see in the supermarket or at the local markets.
- Savings and Investment Opportunities: Building wealth is not limited to the urban. Offering financial products to the rural provides opportunities to save and investment. It can help individuals to build wealth, manage risks, and plan for the future.
- Insurance: Insurance is essential to all kinds of businesses whether they are big, small, in the urban or rural areas. Insurance products protect against risks such as crop failure, natural disasters, and health emergencies, which are particularly significant in rural areas.
- Economic Development: Access to financial services promotes overall economic development by facilitating entrepreneurship, creating jobs, and fostering economic diversification.
- Financial Inclusion: Financial products promote financial inclusion, ensuring that even the most marginalized populations can participate in the formal economy, improve their financial literacy, and enhance their economic well-being.
- Access to Credit: Many of those in the rural in Papua New Guinea are subsistence farmers. They live in a cash economy. Providing them access to credit enables them to invest in equipment, seeds, and other inputs necessary for productivity and growth. You see, when you go to the market or even supermarkets, many, if not all of the fresh fruits and vegetables come from the rural. Enabling them access to credit to grow their business affects the quantity and quality of the fresh fruits and vegetables you see in the supermarket or at the local markets.
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Feature
September 23, 2024
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