World Bank: 1.7 billion people around the world don't have bank accounts

It comes as a surprise that according to data recently released by the World Bank, 1.7 billion (yes, billion, not million) people from all over the world don’t have access to bank accounts. In this day and age of modern technology where people can create online transactions without regard for regular banking hours, it’s truly shocking that 1.7 billion people still don’t have bank accounts simply because they don’t have access to banks or ATMs. And to think that this number has improved a lot as more than half a billion people finally had access to proper banks in the last three years. 

Why a Bank Account is Necessary

So, why is it important to have a bank account? For one, storing cash in the house poses a high risk of the money getting stolen or lost. What if the house burns down, gets flooded, or gets destroyed by a hurricane or tsunami? All cash would be lost and you won’t have anything left. Having a bank account also allows you to monitor how much savings you have. 

And probably the most important benefit of having a bank account is being able to connect to other financial services that makes daily expenses easier to handle. For instance, without a bank account, you won’t get approved for a credit card or the many different kinds of loans that allow you to get ahead in life.

Access to Financial Security

The World Bank data begs the question, if 1.7 people in the world do not have bank accounts, does it also mean that this many people—or even more—don’t have access to the digital financial services that are available today? You all know how important these digital financial services are, especially during this time of pandemic where person-to-person contact is avoided as much as possible. 

Imagine not being able to pay your utility bills online and having to go to the bank or the mall to pay for them in cash? Aside from being a hassle that takes up time and effort, you’re also at high risk of getting coronavirus as you expose yourself to more people. It is simply not that practical anymore.

Tokenized Assets and Securities

“It really comes down to this notion of tokenized real-world assets and tokenized securities. The ability for the industry to move to a place where almost every asset on the planet is associated or linked to digital circuitry, or a digital token or component. Because as soon as you do that, the fungibility, the transferability, the movement of all of those assets becomes completely seamless and you can do some pretty amazing things,” Roy Bernhard, CEO and chief visionary of digital asset marketplace Fabriik. 

Being financially capable—knowing how to use the various features of the financial system—provides you with access to a lot more than just making online payments. You can also trade digital assets and earn extra income at the safety of your homes. It is like the stock exchange, but you don’t need to go through brokers and other third party intermediaries to buy stocks. You can just go online, find a digital asset marketplace that you can trust, and you can already trade digital currencies and other types of digital assets. 

Become Financially Capable

Going cashless is the future. And the sooner more people become financially capable, the sooner the global economy can recover from the negative effects of the pandemic.