New Financial Services for the Poor

When Bill and I talk with people about the foundation's work in providing financial services to the poor, many are often surprised that poor people can save money at all. But the truth is, the poor do save, but without access to banking services, it's much more difficult for them.

I recently visited Mexico to learn more about a foundation partnership of community-owned stores that's helping Mexico's rural poor gain access to bank accounts and other financial services. Most of the poor do not have access to financial services, and they live far away from the banks. In the communities that I visited in rural Mexico, people would need to travel for five hours in order to visit a bank.

In Mexico, we're trying to deliver banking services to rural communities in a way that is affordable to poor people. The way we are doing that is by bringing banking outside the bank. By using what's called the agent banking model, where you offer banking at corner stores, and other existing networks, there's an incredible opportunity to expand financial access and positively impact the poor.

More to Explore

A recent book by one of our grantees, Portfolios of the Poor: How the World's Poor Live on Two Dollars a Day, offers insights into the financial lives of the world's poorest households. The author spent a year recording how villagers--slum dwellers in Bangladesh, India, and South Africa--manage their money. I recommend this book to anyone who has interest in improving the lives of the poor.

• See our Portfolios of the Poor photo gallery
• Visit the Portfolios of the Poor website
• Our Work in Financial Services for the Poor

 

Comments

[marcar72]

02:56 PM on 07/20/2010

Gates is a member of organizations that push one world government , one world business. This action tries to make all nations equal . So the U.S. has to be dragged down and third world nations raised up .

[itproinct]

08:59 PM on 07/18/2010

Melinda - Thanks to you and your Husband for doing humanitarian work, but at this point a little help here in America would be great too. Tell Bill one thing he could do is start re-investing in an American workforce / American citizens with jobs at Microsoft etc... I know the bottom line and profits at the top for MS is much better with third world labor, but our country and it's workforce is falling apart too. How much money and profits for MS is enough? Tell Bill to share the prosperity with some of his fellow Americans right here at home.

[cityprole]

07:18 PM on 07/18/2010

As for the Gates family, the Buffets of the world, etc...what you do is very commendable, but it seems to me that the country where you made your colossal profits is in dire need, as much as any 3rd World country right now, in need of financial assistance to the poor...why not Micro-Loan programs in the States? Bet Obama would even give you a big ol' tax deduction...who was it said charity begins at home?

[Vlad Tepes]

06:51 PM on 07/18/2010

You can find much of Mexico's rural communities here in the United States. Banks want to wiggle in between those who are here and those remaining in Mexico. Alot of money flows back and forth.

[Enroh Mot]

07:47 PM on 07/18/2010

We should arrest the bankers, all of them.

[Vlad Tepes]

07:55 PM on 07/18/2010

Wow, I'm actually agreeing with you.

[Mz Fang]

07:56 PM on 07/18/2010

I wish I could fan you again!!!!

[Steve1]

06:31 PM on 07/18/2010

I appreciate your work in Mexico, though can you folks also please do the same in this country as well.

Thank you.

[kelley33]

05:25 PM on 07/18/2010

Um Hum. I trust Bill and Melinda Gates about as far as I can throw them. Just last month, Bill was recorded saying that "vaccinations are how we will end overpopulation." They have an agenda, alright. Helping poor people is not one of them. But that's what they want you to believe. Trust at your own peril.

[Christian Schultz]

05:34 PM on 07/18/2010

I have not heard that quote. Do you have a source I would be interested in reading more.

I think they get a bum rap that's not always deserved. They have transferred billions into their charities to assist those less fortunate as we are.
Seems like if they had not done so people would be vilifying them. No win for them I guess.

[Scout97]

07:08 PM on 07/18/2010

I think it needs to be realized that people in the poorest nations often have multiple children because many of them do not even live to be teenagers. They want to be able to have at least one child that can live to help care for them when they are elderly. That is what Mr. Gates was referring to with the comment "vaccinations are how we will end overpopulation".

[BunnyFooFoo]

05:06 PM on 07/18/2010

Thank you, Melinda, for keeping us informed.

[Benmyoho]

04:57 PM on 07/18/2010

Wow, what a revolutionary and laudable program! A thinking-out-of-the-box approach to helping rural communities!

Much kudos to Bill and Melinda Gates!

Would that you could replicate this in the Philippines!

http://www.facebook.com/#!/pages/GUINARONA/132160116812820?ref=mf

[Nuyorican21]

03:57 PM on 07/18/2010

This is not a Bill Gates idea. This is based on the Grameen Bank in India. It is not a new idea, just more relevant because US citizens can now relate to a lack of access to credit.

[tobyzip]

02:43 PM on 07/18/2010

I think the moral of this story is that we all should get used to living on two dollars a day!

[pedernales]

02:24 PM on 07/18/2010

The U.S. has the worst dispartity of income among all the nations in the western industrial democracies with falling wages and, for 30 years, no increase in disposable income during the largest stock market boom and productivity increases in U.S. history. In the U.S., we're experiencing - mostly on our ass waiting for the next ball game to start - one of the worst betrayals of a civilization in modern history. Mexico is an overpopulated, fascistic, macho fertility culture, now the biggest and most violent national failure in our hemisphere. So what do we all need? Better banking for the poor! That's right, we don't need a virlulent, peaceful revolution to restore our institutions back into our own hands to save our nations. No,we need better banking.

[MissPreciousPerfect]

02:21 PM on 07/18/2010

Call me naïve, but I truly can't understand where all the Gates-loathing expressed in this thread comes from. The Gates are two of the very few rich I DON'T want to eat. I mean, what's so despicable about wanting to use one's vast personal wealth to help improve the lives of others—others who probably never bought, nor ever will buy, a Microsoft product of any description I dare say?

Even though I've been an Apple girl from Day 1, I would like to thank you for your service to humanity, Bill and Melissa. Steve Jobs? Not so much.

[Christian Schultz]

05:26 PM on 07/18/2010

Very well said.

[FWDpost]

02:06 PM on 07/18/2010

The richest man in the world is a Mexican capitalist. Why don't they raise taxes on the rich and maybe some money will be left for the people?

[Libertyfan]

08:47 PM on 07/18/2010

You want to raise taxes on the drug lords? Who's going to collect it?

[goot4u22]

01:29 PM on 07/18/2010

Not if this is supplemented with whatever can be found locally. The point is that human beings should not be starving to death in this day and age.

[TXfemmom]

01:25 PM on 07/18/2010

Mexico did well with the first microlending plan which went into effect. People were able to improve their lives and start businesses with as little as $50 to $100 and they repaid at something like 99%. Then, the greedy, big guys got involved and it is no longer effective in helping people and just keeps them indebted. Were enough money applied via this and the original plans and low costs once again established, then this could help Mexico's poor. Just having a checking account or savings account in Mexico is a complicated thing.