The conference was organized by USAID Nepal through its Nepal Economic, Agriculture and Trade (NEAT) program in order to “set the stage for an interactive dialogue on how Nepal can successfully develop its mobile financial services sector and encourage further innovation in mobile money and branchless banking.”
Nepal, with a population of 27 million and a per capita income of less than US$650, is one of the least developed countries in the world. The country has seen modest development progress over the past 15 years: poverty rates have declined steadily; child mortality and tuberculosis infections have been reduced by half; and 90 percent of children are now initially enrolled in school. This development has also been reflected in the growth of the Nepalese financial sector – aided by recent developments in banking technology which have expanded banking from the traditional brick-and-mortar infrastructure of staffed branches to a system supplemented by channels such as automated teller machines (ATM), credit/debit cards, internet banking and online money transfers.
However, despite significant improvements, access to basic financial services is still restricted only to certain segments of the society. For the financially excluded, opening and maintaining bank accounts in Nepal can be complex and time-consuming due to lack of awareness, geographic inaccessibility, and low availability of targeted products. Continue reading