> Posted by Center Staff
Featured in The Economist, CNN, Forbes, Fast Company, and Smart Money, FAB (Financial Access at Birth) is a social and economic innovation that seeks inclusion. The Center for Financial Inclusion (CFI) at Accion proudly hosts the FAB concept as it deepens its model and prepares for pilot.
Why FAB? Half the world’s population (more than 3 billion people) does not have access to a wide range of safe and quality financial products and services. FAB proposes that one approach to connect these unbanked is to open savings accounts at birth that are linked to a unique, universal ID and to make an initial deposit via a cash transfer. Once the account is created and financial identity secured, other social service providers will have the opportunity to employ this delivery channel for dissemination of information, health, education, and emergency aid. This could include and not be limited to vaccines, tuition grants, and cash transfers for food and shelter.
Who’s Behind FAB? This model of achieving inclusive financial citizenship was developed by UCLA Anderson Professor of Finance and CFI Faculty Council Member Bhagwan Chowdhry. Other FAB co-founders include leaders in finance, innovators in poverty alleviation, and social entrepreneurs: Naren Bansal, Markus Brunnermeier, Joshua Coval, Francisco Gil-Diaz, Michael Green, Paul Hudnut, Vijay Mahajan, Michael Sherraden, Peter Singer, and Raghuram Rajan. FAB is also supported by the UCLA Center for International Business Education and Research (CIBER).
FAB and the Center for Financial Inclusion: A “New Horizon” initiative at the Center for Financial Inclusion, FAB also supports the CFI’s goal and key pillars of its strategy, Financial Inclusion 2020. The CFI is preparing a concept note for the purpose of fostering dialogue and serving as a foundation for a series of global consultations with key stakeholder groups to be launched soon. Learning from the concept note and global consultations will be integrated into a business plan and design for a pilot of the FAB model. With the leadership of Program Manager Rosita Najmi, the CFI is also supporting the development of strategies for communications, partnerships, and fundraising for the FAB model.
For more information, sign up for updates from the Financial Inclusion 2020 campaign.