Financial inclusion can play a key role in reducing informality, the Tunisian Institute for Strategic Studies (French: ITES) said. In a report entitled "Financial Inclusion and its Role in Reducing Informality in Tunisia, " the author, member of academia Sami Mouley, said "the financial inclusion of enterprises and individuals is a catalyst for social inclusion." It can also be a major mechanism to increase economic growth and offer a best future to the population, mainly low-income Tunisians. Reforms and measures to ensure a better access to sources of bank and non-bank financing would ease the inclusion of the informal sector in the formal economy, the report revealed. Yet, "in spite of efforts to ease access to financial services, the analysis of the profiles of financial and economic inclusion shows it is still below the averages of regional and national comparators." The World Bank's Global Findex, which contains updated indicators on access to and use of formal and informal financial services and digital payments, shows that only 37% of Tunisians are banked against 43% on average in the Middle East and North Africa region. Figures demonstrate that the poorest 40% of adults have the most difficulties to access formal financial services as onlt 21% on average have bank accounts in formal institutions against 35% on average in the MENA region. Financial inclusion involves individuals but also enterprises, particularly very small businesses which can have a potential for growth and be a source of jobs. The report sheds light on obstacles impeding financial inclusion, mainly a liquidity shortage of the banking system and financing constraints of the economy as well as regulatory obstacles and an untapped potential in digital finance. // Avenues for reform to address informality// To address informality, the report recommends to put in place a national policy to promote de-cashing. An increased coordination to support the implementation of the Central Bank of Tunisia's de-cashing strategy is required. "The Tunisian Post can likewise play a vital role in connection to financial inclusion, " the author said. The financial inclusion potential through the Tunisian Post is important: 700,000 Tunisians/day seek services in post offices which manage 3.6 million saving accounts and 1.8 million postal current accounts ( a total of 13 billion dinars) Progress made in digital transformation is a prerequiste for the development of the sector of financial services and digital finance, the report highlighted. FinTech is a real engine for digital transformation. The use of the blockchain can provide technological support to digital money. The launch of cryptocurrency:would contribute to financial inclusion. The developement of startups is a catalyst for a new sustainable approach to innovative business models. Additionally, there is need to rethink the microfinance development strategy in a bid to foster financial inclusion, the author of the reported further said.
Source: Agence Tunis Afrique Presse