Tag: bank accounts

Jun 1 2012

How bank accounts can help empower families in poverty

Did you know that about half of the world’s people ñ more than 2.5 billion adults ñ do not have a bank account?

Jayamma in India withdraws money from her bank account

Jayamma withdraws money from her sponsored child’s bank account in India in this 2011 photo. Her child’s name is Nagalakshmi.

The World Bank arrived at that estimate recently, according to this Bloomberg Businessweek article. Many of these people live in the communities CFCA serves.

Poverty and a lack of required documentation are some reasons why many of these families have never even set foot inside a bank.

“It’s very rare for sponsored friends and their families to have a bank account of their own,” said Jose Rodriguez, CFCA project director for Colombia and Bolivia.

Sponsored children, the aging and their families usually live and work within their countries’ informal economies.

Their income is often seasonal and comes from cash-based, small-scale sources.

Sponsorship and microfinancing

In some countries such as India and Kenya, sponsorship benefits in some projects are distributed through bank accounts to the mothers of sponsored children.

Because these children are under 18, their mothers manage these accounts under the supervision of CFCA staff until the children are of age.

“These bank accounts become tools for families to save and access sponsorship benefits,” Jose said. Read more