Used as a form of identification and access control. Technology for recognizing individuals based on physical traits, such as fingerprints. Biometric cards can be combined with smart cards to prevent use of the card in financial transactions by individuals who are not the card owner, making transactions more secure. Biometric cards serve as effective identification cards for individuals who lack other forms of formal identification, or are illiterate. Generally biometric cards use fingerprints to validate that the cardholder is the card owner. Biometric CardĪ card that uses biometric technology to identify and authenticate the card user. The following can all be considered banking outlets: a bank branch, an ATM, a banking agent (such as gas station or post office that provides financial services), a retail store with in-store banking, a mobile phone, a website (in the case of e-banking), or a point of sale (POS) device (these are portable devices with antennas or connected to tellers that function as quasi ATMs). Banking OutletĪ physical place where clients can access a financial service. Avoidance of Over-indebtednessĪ Client Protection Principle that states that providers will take reasonable steps to ensure that credit will be extended only if borrowers have demonstrated an adequate ability to repay and loans will not put the borrowers at significant risk of over-indebtedness. ATM CardĪ plastic card that can be used with an ATM for deposits or withdrawal of funds in a bank account.ĪTM cards can use magnetic strips or smart card technology. Quotation of rates in APR terms facilitates price comparison. APRĪn acronym for Annual Percentage Rate a form of stating an interest rate in which the interest rate is annualized and all fees are incorporated.ĪPR does not include compounding interest unlike the effective interest rate (EIR), which does include compounding. Appropriate Collections PracticesĪ Client Protection Principle that states that the debt collection practices of providers will be neither abusive nor coercive.Īppropriate collections practices, while they may be firm, treat clients with dignity even when they fail to fulfill their obligation and do not deprive them of the ability to earn their livelihood. These regulations, while important, can sometimes create barriers to financial inclusion. While each country can choose how to adapt these international standards, in most countries financial institutions are required to apply certain know your customer (KYC) regulations to all customers, strengthen internal controls, and watch for suspicious transactions. The term usually refers to the international standards on AML/CFT set up by the Financial Action Task Force (FATF), an inter-governmental body. AML/CFTĪn acronym for Anti-Money Laundering/Combating the Financing of Terrorism policies to detect and reduce money laundering and terrorism financing. Agent banking is a delivery channel that holds high potential for closing the location gap. Agent B ankingĪlso known as correspondent banking, this is a model for delivering financial services whereby a bank partners with a retail agent (or correspondent) in order to extend financial services in locations for which bank branches would be uneconomical.Īgents can be both banking (small banks) and non-banking correspondents (post offices, gas stations, and mom-and-pop shops). AffordabilityĪ characteristic of quality financial services describes products for which the price is in line with the client’s ability to pay for them.Īffordability is considered one of the greatest barriers to access. Usage is often used as a proxy, although it can underestimate the number of households that have access because it fails to capture those who currently have access to a financial service but are not using it. The availability to a given person of affordable and appropriate financial services.Īccess is often seen as the goal of financial inclusion however access is difficult to measure. We welcome your recommendations for or submissions of additional terms. The purpose of the Financial Inclusion Glossary is to develop shared language about financial inclusion. The Glossary defines terms essential for extending financial services to all who can use them.
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