Essay About Financial Service System And Financial Services

Financial for the Poor
Financial for the PoorThankom Arun, David Hulme, Imran Matin and Stuart Rutherford who wrote an article named “ financial for the poor: the way forward?”in 2009. It analyses the contribution of the financing models need to be change and ensure that poor will benefit as well. Micro Finance is a financial service system, which is specifically aimed at the poor and low income population and micro enterprises. The development of micro financial services with the poor just started around by 1980s，financial services have been a big rise and based on savings，credits，insurance（p.8）.In mostly people’s popular thinking which is poor would not to save their money to the bank if they do have money. But this article found that was faulty understanding and explores the reasons of poor prefer to save than not save, and why poors capacity and willingness to save (p.8). Muhammad Yunus（28/06/1940）who is the founder of Grameen Bank，people called him“the banker to the poor”. The reason why the poor are getting poorer is not because of their own efforts，is their lack of capital. Poor require large sum of money for childbirth, education, marriage, home-building, old age, and accidents. So they are not have any opportunities to buy a house as an investment，to buy a land or real estate(p.9). The main purpose of micro financial is helping poor move out of poverty, poor or low income people are the main target customers. To help them carry out production activities or do business with a small capital.There is another way poor can make money by selling assets, and through pawn, poor people are able to covert assets to their own money, but it would not be always relasied. So the savings strategy is one way to help poor people protect against risk and make a development of assets. (p.9). in the results, it shows poor people use different ways with other people to store and retrieve money. It also shows the poor people cannot easier to get it. Some economic explores the better way of micro financial service to help poor to be more likely to achieve what they want and the goals.