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McMullan
A new strategy launched today will help poor people improve their way of life through increased access to crucial financial services, increasingly being seen as important to reducing poverty and achieving the Millennium Development Goals.
The Australian Government's Financial Services for the Poor: A strategy for the Australian aid program 2010-15 was launched today by Parliamentary Secretary for International Development Assistance, Mr Bob McMullan.
"As many as 2.7 billion adults in developing countries, or almost three-quarters of the adult population, still do not have access to financial services, such as savings, credit, payment services and insurance," Mr McMullan said.
"Their inability to borrow or save money safely makes finding a way out of poverty more difficult and makes them more vulnerable when adversity hits.
"Financial services give poor people, especially women, opportunities to set up small businesses, insure against crop losses and save in case of illness or disaster. This has the potential to transform their lives."
The Australian aid program has been spending an average of $10 million a year since 2004 to improve poor people's access to financial services and this will increase to up to $20 million a year by 2012-13.
Australia will assist formal and informal financial institutions to offer quality, affordable and fair financial services to the poor, including through microfinance and new technologies such as mobile phone banking.
Financial literacy programs will help clients understand the available services and make informed decisions so they can take advantage of financial opportunities and plan for the future.
Governments will be assisted to create a policy and regulatory environment that helps expand financial services while protecting consumers.