Frequently Asked Questions:
1. How many people in the world do not have access to basic financial services?
According to a report by CGAP click here, currently, half the
world has no access to financial services. Similar estimates are
reported in another report by FAI Click here.
2. How many children are born each year?
Currently, 134 million children are born each year all over the world.
3. How much money will be needed each year to provide US$100 FAB
accounts for all children born each year?
We estimate that parents of about 25% of children born would
voluntarily forgo the initial $100 and thus $10 billion will be needed
each year to fund FAB accounts for 100 million children.
4. Where would $10 billion a year come from?
We propose that each country contribute one-fiftieth of one percent of
their GDP towards FAB accounts. The United States, for example, would
contribute less than $3 billion, India would contribute about $200
million and Rwanda would contribute less than $1 million.
5. How would we guard against fraud?
No withdrawal of the initial $100 deposit will be allowed until the
child becomes 16 years of age. The opening of FAB accounts will be
integrated with the official birth registration process. Use of new
technology, such as biometric identity systems, could further minimize
the possibility of fraud and manipulation.
6. What will be the benefits of FAB accounts?
Relatives, private donors, other social organizations could design
plans in which regular payments are made to FAB accounts to provide
for education, training, immunizations and health-care.
7. How much of the initial $100 and any subsequent deposits will
actually reach the children after bank and administrative fees are
deducted?
We would need to ensure that funds are transferred in their entirety
to the recipients, which means that institutions involved must agree
to bear additional administrative and transactions costs as acts of
corporate social responsibility.
8. What will be the benefits of integrating the FAB accounts with
electronic and mobile banking?
Emergency funds donated by private citizens or aid agencies, or direct
payments to FAB accounts from catastrophe insurance, could be
withdrawn almost immediately, in time of need, to buy food, medicines
or clothing and without any slippage or loss that is often associated
with traditional aid.
9. What is the time-framework for FAB Campaign?
We propose that we start opening FAB accounts on November 11, 2011
(11/11/11).By 2030, all children and young adults in the world will have access to financial services.
10. I would like to help, what can I do?