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The article reports that the United Nations (UN) is focusing its attention on finance for the poor. In the next 12 months the spotlight falls on microfinance, the business of lending small amounts of money to the poor, taking deposits from them, transmitting money on their behalf and insuring them. No good data exist on how many people have access to financial institutions, the breadth and penetration of banks in poor countries, the real cost of a loan and the time it takes to get one, the ease of making a deposit and so forth. There is not even convincing information, beyond lots of anecdotes illustrated by photographs of women in rural villages, about whether microfinance makes any significant contribution to economic growth or is merely another philanthropic fad. The UN would do well to address the common complaint that banks ignore the poor out of class bias. If they do, the UN's interest may hasten change: some financial institutions are already making efforts to work with the poor, either directly or by providing wholesale services to smaller financial institutions.

This article looks at banking in South Africa and the effort to incorporate more South Africans into the country's banking system. According to the FinMark Trust, an independent body promoting broader access to financial services, over half of South Africans over the age of sixteen, close to 16 million people, do not have a bank account. The main reason is the lack of regular income, a common affliction in a country where over 40% of people are unemployed. Without a salary slip, it is difficult to gain access to banking services, and fees are hard to bear. Without much money, many see no point in having an account anyway. And it is little help that banks and automatic teller machines (ATMs) are rare in poor areas. South African banks, however, have signed a charter committing themselves to do their bit to redress the inequalities inherited from apartheid.