Anjar Priandoyo

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Banking is expensive

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Banking is expensive

Banking is expensive. It costs a bank $250 — $400 to open and maintain a bank account for a person 1. Therefore financial inclusion is the opposite idea of banking -to some degree is banking charity. And to be noted, the problem with financial exclusion: more expensive in transactional, more expensive from non-bank institution, no saving. Consumer think banking is expensive, banks thinks is not profitable.

It is interesting that every jargon (buzzword) is fairly old. Financial Inclusion PP 82/2016. Interesting story about pegadaian: As the only state own pawnbroker in the world, est 1746 as Bank Van Leening (VOC), 1811 British, 1901 Sukabumi. 26% revenue is from gold trading?. Interesting story of BCA: BCA has 63% operating-expense ratio (BOPO/OER) the lowest in Indonesia.

Every government initiative is questionnable, the same like every bubble. Most of the analysis I read is only based on the interest.

Gold: Why Do Financial Inclusion Policies Fail in Mobilizing Savings from the Poor? Lessons from Rural South India (Goedecke 2018)

The market power of IBs has significantly declined over time: Islamic Banking, Costly Religiosity and Competition (Azmat 2020)

ref, ref, ref, ref, ref

Wiki: Dick Whittington and His Cat, London streets are paved with gold, Dot-com bubble, Unicorn bubble,

Written by Anjar Priandoyo

Juni 15, 2020 pada 4:26 pm

Ditulis dalam Business

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