The Digital Divide, Financial Exclusion and Mobile Phone Technology: Two Problems, One Solution

The recent growth in the use of electronic communications throughout the world has not included everyone. The vast majority of the world‟s population is still unable to gain access to digital technology, especially the Internet, hence the „digital divide‟. However, this divide is not restricted to the developing world; with the divide also prevalent within the UK, again particularly in terms of internet access. A result of this situation is that while the UK and many of its citizens reap the benefits that the Internet brings, areas are left even deeper in a state of financial exclusion from mainstream banking facilities. As more people take advantage of the convenience the Internet can bring to managing financial affairs, the banking industry has identified a need for less branches and staff. From their understandable perspective it makes more sense to close unprofitable, high risk branches. These are ultimately in rural or poor inner city areas; the areas that are less likely to have Internet access. Advances in mobile phone technology could prove a solution to both.