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Financial Apartheid

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Every year, millions of people around the world transition out of poverty with the help of tools that enable them to build more stable economic lives. At the same time, similar numbers continue to remain trapped in a cycle of poverty they are not able to escape.

Similarly, millions of people are pushed back into poverty as they are unable to cope with unexpected economic pressures. A significant driver of this cycle is financial exclusion. Banking is an essential building block to reach greater prosperity and help build a better system where financial services empower disadvantaged groups. Broader access to financial services can create a path out of poverty.

However, big traditional banks often exclude low-income populations by requiring credit score thresholds or minimum balance requirements or by using historically discriminatory practices that keep this low-income customer away from formal finance. Modern lifestyles are predicated on debt….

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