A global priority

Creating inclusive financial systems is also a priority for governments internationally because of the resulting benefits to wider social inclusion, economic development and growth. One of the most important ways to improve inclusion is through providing better access to basic accounts that enable simple payments and transactions.

Providing basic, low-cost banking services to lower-income and formerly unbanked people offer opportunities both to customers and Barclays. Across the world, around three billion people are seeking access to basic financial services essential to managing their lives. Developing efficient services is one of the best ways for a bank such as Barclays to extend its customer base while simultaneously promoting financial inclusion.

In the emerging markets where Barclays operates we offer accounts dedicated to low-income people. We strive to keep accessibility as high as possible. The average minimum opening balance required to open an account in the seven emerging economies mentioned above is approximately £4. At the end of 2008, we had around 590,000 accounts designed for low-income customers, representing an estimated 27% of our local customer base across these markets. The latest launch in this range was the ‘No frills’ account in India, which has attracted 4,000 customers.

In South Africa, Absa’s Sekulula services help government welfare beneficiaries gain inclusion into the financial system. Sekulula debit card account holders increased from 707,000 in September 2007 to over 742,000 by January 2009. Absa also had over 462,000 Mzansi (basic) bank accounts at the end of 2008.

In the UK, our basic bank account is used by over 730,000 customers, more than 38,000 of whom live in the most deprived areas of the UK.

Inclusion in action

Barclays commitment to financial inclusion is reflected by the strong take-up of our basic bank accounts and our continuing product innovation including:

• South Africa, Absa is a market leader in serving customers earning less than R3,000 (£200) a month, with a market share of 33%.
• Kenya, Barclays offers one of the most competitive interest rates on savings with the Mega Savings Account which features free withdrawals and deposits, no maintenance charges and free standing orders. Further covering the diverse needs of customers, Barclays also was one of the first to introduce Islamic banking in Kenya and has a “Pepea” current account with a low maintenance fee of KSh 100 (less than £1). 
• Katine, Uganda, Barclays is working with CARE Uganda and local partner UWESO (Uganda Women’s Effort to Save Orphans) to develop a commercially-viable banking model for rural communities that can be rolled out elsewhere in the world.