:00:00. > :00:00.come together to help those who are suffering. Now, World Business
:00:00. > :00:23.Report. Banking for those who need it most.
:00:24. > :00:29.We find out how the World Bank hopes to give all working age adults
:00:30. > :00:32.across the world access to bank accounts and credit. As the world
:00:33. > :00:38.waits for answers on China's economic future, we highlight how
:00:39. > :00:50.rapid urbanisation could create a housing bubble in the world's
:00:51. > :00:53.second`largest economy. Preparing for a cyber attack. The city of
:00:54. > :01:01.London finds out just how vulnerable it is. First, 2.5 billion adults do
:01:02. > :01:05.not have access to the financial system. That means they have no bank
:01:06. > :01:10.accounts, no credit and no insurance, and effectively, no
:01:11. > :01:16.financial security. The World Bank wants to change that. It says it
:01:17. > :01:23.wants to provide financial access to all working age adults by 2020. As
:01:24. > :01:32.you can imagine, there are various challenges ahead. Innovation in
:01:33. > :01:38.microcredit and mobile technology is managing to change lives around the
:01:39. > :01:41.world. In Kenya, an idea that was born five years ago is changing the
:01:42. > :01:50.way people send money around the world. It is based on the mobile
:01:51. > :01:55.phone. There are more than 1700 registered users. Bank accounts are
:01:56. > :01:58.being integrated into the system so that users can deposit and withdraw
:01:59. > :02:03.money and even take out loans and make interest on their money. Users
:02:04. > :02:07.can pay for goods and services like rent, electricity, water bills or
:02:08. > :02:17.even just buying lunch. In Bangladesh, microcredit lending has
:02:18. > :02:23.led the way in getting poorer people access to finance. Nearly 30 years
:02:24. > :02:29.later, a long list of providers lent billions of dollars to as many as 20
:02:30. > :02:37.million small borrowers. While debate remains ever however
:02:38. > :02:41.effective microcredit has been, it has definitely given people in
:02:42. > :02:44.Bangladesh access to finance. Recently, Bangladeshis have been
:02:45. > :02:54.interested in mobile financial services as well, such as mobile
:02:55. > :02:59.wallets. Colombia still has a lot to do to improve access to financial
:03:00. > :03:03.services but last year, 3.8 million people benefited from microcredit
:03:04. > :03:08.loans. That is more than one out of every ten adults in Colombia. I
:03:09. > :03:15.recently met somebody who embodies what micro` financing can do and is
:03:16. > :03:18.doing for poor people in Colombia. He has been selling avocados on the
:03:19. > :03:24.streets of Bogota for more than 20 years. 80 years ago, he got his
:03:25. > :03:33.first micro` loan. It was just $300 `` eight years ago. It paved the way
:03:34. > :03:40.for the mortgage that allowed him to buy his first home. Thank you for
:03:41. > :03:48.joining us. You are the senior economist from the World Bank. We
:03:49. > :03:53.have just received a sense of where some countries in the world are on
:03:54. > :03:57.this issue and also how important innovation is when it comes to
:03:58. > :04:01.achieving this goal. How are you planning to make this happen?
:04:02. > :04:08.Connecting 2.5 billion people financially by 2020 is no mean feat.
:04:09. > :04:13.That is correct. There are many driving forces behind financial
:04:14. > :04:18.inclusion. And those were three great examples in Kenya, Bangladesh
:04:19. > :04:24.and Colombia. There is a lot of innovation. There is the potential
:04:25. > :04:27.for using the almost 7 billion mobile phone subscriptions around
:04:28. > :04:32.the world. It is almost in parity with the world's population.
:04:33. > :04:36.However, that is only one of many ways we can work towards achieving
:04:37. > :04:41.that. It will definitely take partnerships between public and
:04:42. > :04:47.credit. The legal and regular trade frameworks will have to be
:04:48. > :04:50.strengthened. And also taking advantage of different kinds of
:04:51. > :04:55.programmes that exist out there like government to pass on payments in
:04:56. > :04:58.many developing countries. They don't necessarily make use of
:04:59. > :05:06.payment mechanisms that would enable people to get to the bank. There are
:05:07. > :05:10.many different policy, innovation, product, design, technology aspects
:05:11. > :05:16.that we are looking forward to moving on aggressively over the next
:05:17. > :05:24.few years. As far as you are concerned, what are the obstacles to
:05:25. > :05:27.achieving that goal? We have looked at countries that are seeing
:05:28. > :05:30.innovation but there are many places in the world where it is extremely
:05:31. > :05:39.difficult to get a financial connection. That is correct. As we
:05:40. > :05:42.move forward, one of the challenges is definitely the enabling
:05:43. > :05:47.environment. Some countries have strong institutional frameworks and
:05:48. > :05:52.legal and regulatory systems. Too often as countries are in the
:05:53. > :05:56.process of developing, those institutions are not where they need
:05:57. > :06:01.to be. Something you mentioned in the context of Colombia that I
:06:02. > :06:05.worked on quite a bit for a number of years is a credit reporting and
:06:06. > :06:11.good information infrastructure so that you can determine are in the
:06:12. > :06:16.system. Another thing that I would like to highlight is that much of
:06:17. > :06:20.the report in the beginning was about microcredit. We want to go
:06:21. > :06:25.beyond the credit side of microcredit to a more expansive
:06:26. > :06:29.definition of financial inclusion that includes payments and savings
:06:30. > :06:35.and insurance policies and other risk mitigation services as well as
:06:36. > :06:42.credit. Thank you. We appreciate your time.
:06:43. > :06:46.A very interesting subject that we will of course return to as it
:06:47. > :06:50.develops. Now, let's talk about China. The meeting of leaders which
:06:51. > :06:58.will set the course of the country's economic future is drawing
:06:59. > :07:02.to a close today. And the world will be watching, which is not surprising
:07:03. > :07:07.when you consider how much of the world's growth is driven by this
:07:08. > :07:10.giant economy. The outcome is of extreme interest to the local
:07:11. > :07:14.population in China as well, especially when it comes to issues
:07:15. > :07:19.of rapid urbanisation and investment opportunities. There are fears a
:07:20. > :07:25.housing bubble could develop, leaving many Chinese people exposed.
:07:26. > :07:32.Real estate is the saviour and the curse of the Chinese economy.
:07:33. > :07:36.Apartment blocks like these are coming up across the country. This
:07:37. > :07:41.year alone, construction began on 1.5 Union Square metres of new
:07:42. > :07:50.housing. Perfect for the new affluent population of China. Home
:07:51. > :07:54.ownership rates here are 90%. But looking inside some of those
:07:55. > :08:00.gleaming high`rise buildings, the surprise is that there is no one
:08:01. > :08:05.there. Families are buying up second, third, even fourth home is
:08:06. > :08:08.purely as investments. Property is one of the few places Chinese people
:08:09. > :08:19.can put their money and get an amazing return. This is a new type
:08:20. > :08:24.of asset in which, actually, use is a negative thing. You are not
:08:25. > :08:28.supposed to live in these apartments because that would depreciate the
:08:29. > :08:38.value of them. They collect them the way one would collect a wristwatch
:08:39. > :08:41.or gold coins in ages past. Chinese cities are still growing and not
:08:42. > :08:45.everyone can afford the rising prices. The government has promised
:08:46. > :08:50.to build new affordable housing but it also needs the property industry
:08:51. > :08:59.to sustain the economy. If this bubble burst, ordinary families
:09:00. > :09:02.could lose everything. London's financial community will undertake a
:09:03. > :09:07.simulated cyber attack today to gauge how vulnerable the city is to
:09:08. > :09:12.an assault on computer systems. Ranks, financial institutions, the
:09:13. > :09:16.Bank of England, the Treasury and the Financial Conduct Authority are
:09:17. > :09:26.all taking part in this inhalation. The exercise, which is being called
:09:27. > :09:31.Waking Shark, follows a similar exercise which was held in New York
:09:32. > :09:34.earlier this year. The Venezuelan government has occupied a chain of
:09:35. > :09:39.electronic stores, forcing them to cut their prices. President Nicolas
:09:40. > :09:44.Maduro drafted in the Army to make sure the train of stores brings
:09:45. > :09:49.their prices down to what he calls fare levels and also to keep crowds
:09:50. > :09:52.of bargain hunters at bay. He occupied the stores in a bid to
:09:53. > :09:59.tackle high inflation which he blames on price`fixing. A number of
:10:00. > :10:09.store managers have been arrested. Financial markets. Japan is proving
:10:10. > :10:14.to be very strong indeed. Industrial and Commercial Bank of China has
:10:15. > :10:18.been added to a list of global banks that need more capital. That is an
:10:19. > :10:30.interesting story, the talk of the markets today.
:10:31. > :10:35.Young people in care are not getting the support they are legally
:10:36. > :10:44.entitled to, according to a group of MPs. A report found that many who
:10:45. > :10:45.leave care are missing out on financial support from their