Financial Inclusion: Analysis of Banking Products through Correspondent Banking Agents in Guatemala

• Main Authors: Cid, Gabriela del, 石嘉德
• Other Authors: Tsai, Cheng Hsien
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/94805279501384536111

碩士 === 國立政治大學 === 國際經營管理英語碩士學位學程(IMBA) === 103 === This paper provides an analysis on Financial Inclusion and a set of indicators to understand how adults in Guatemala manage their finances. The data shows that only 22 percent of the adult population has an account at a legitimate financial institution. In addition, 25 percent of adults report having saving habits but only 10 percent do it at a legitimate financial institution. Physical distance is a key factor in achieving Financial Inclusion in the country as the most common barrier for the use of financial products is the lack of financial service branches in many regions, especially in the northern part of the country. The purpose of this research was to find a method that could be implemented in Guatemala in order to introduce underserved people into the legitimate financial system. Special analysis was made on the Correspondent Banking model and it was found to be one of the most successful methods employed to improve access and usage of financial services in many countries. This branchless banking strategy can play a significant role in ensuring universal access to financial services, and be a cost-effective strategy for financial institutions to increase their customer base. Guatemala can use this current opportunity to guide its economic strategy towards the reduction of poverty, economic improvement and mitigation of some of the worst effects of being financially excluded.