"Helping poor people to open their own bank accounts is important if we are to reduce global poverty. Having a bank account or being able to take out a loan allows the benefits of economic growth to be shared more widely. People have the funds they need to pay for their children's schooling, cope with emergencies, such as family illnesses, or set up small businesses."
Gareth Thomas, international development minister, June 2007
At present two billion people globally, many of them living on less than $1 a day, do not have access to basic financial services taken for granted in rich countries, such as bank accounts, insurance, pension schemes or loans. That means it is harder, if not impossible, for them to save for the future or invest in their own businesses and leaves them vulnerable to losing their savings in a fire, or through flooding or theft.
Generating income and wealth within a community and reducing poverty require the ability for people to save money; to build assets; to borrow to invest in projects that will have a positive return and therefore increase income; to be able to take insurance against situations that make communities vulnerable; and to acquire the financial skills and knowledge to make the right financial decisions.
Providing financial services to poor and remote communities is about giving them access to relevant and accessible products and information so they can make the most of their opportunities - achieve their dreams and change their lives.
In Uganda, fewer than 20% of people in the population have access to a bank account. In Katine, it is estimated, the figure is much lower. Barclays' involvement in the Katine project will strengthen the local economy by increasing agricultural production, diversifying the economic base and improving market access. Barclays' participation is built around three key pillars of poverty reduction.
First, Barclays will impart skills in financial literacy, helping people to save, plan and establish businesses. Working in groups (for example, of farmers or women) people should become able to manage their finances better and thus transcend the current, short-term approach to finance.
Second, Barclays will help people in Katine to open bank accounts and to save, as well as to obtain financial products including loans. Critically, these products will be designed specifically for the context - in Katine, for example, working in synchrony with the local harvest cycle. Such support should help people in the village to become more financially secure, so that they can invest in businesses and in the education of their children.
Third, Barclays will improve the capacity of local institutions, groups and financial intermediaries to provide relevant financial services to Katine. This should lead to the provision of financial services beyond the lifespan of this project.
Barclays' role in the Guardian/Amref partnership is fully integrated with its commercial operations in Uganda, which aim to contribute African development and to provide financial products to poor people. For example, Barclays Uganda has pioneered Sanyuka ("be happy") savings and transactional accounts, which introduce people without access to banking to the advantages of formal financial systems. These accounts are available to customers with monthly incomes of less than £27.