To include more people in the financial universe, technology has had to adapt to the needs of users, bridging existing gaps in digital literacy and making finance accessible to all.
Beyond the ethical responsibility of technology, financial inclusion has the potential to support development in countries and is positively associated with increased GDP, especially in developing economies.
This is how technology can and is shaping a more inclusive financial sector. Access to secure and better payment services
The Cryptocurrency Trap: “Cuts Into Basic Guarantees and Freedoms,” According to the Bar Association
In Latin America, many countries rely heavily on cash transactions. However, paying with physical money can be dangerous.
Interestingly, internet penetration is high in this region, as is the number of smartphones per capita. In this context, mobile financial technology allows people to create digital accounts to pay for goods, transfer money and save. This type of technology not only reduces the number of cash transactions, but also allows more communities to manage their money safely and quickly.
A springboard for the growth of companies
Small businesses are often not eligible for loans from traditional financial institutions because they are considered high risk. In response, fintechs are creating alternative credit routes for SMEs. Peer-to-peer (P2P) lending platforms allow lenders to make offers on the loan requirements of borrowers. In this scenario, the P2P platform acts as a connector and coordinator of loan agreements that small businesses would otherwise not be able to access.
Overcoming the Financial Trap, Together
Technology is advancing by leaps and bounds towards greater global financial inclusion, however, there is still a way to go.
There should be three main areas of focus:
- Cyber security,
- inclusive design and
- generation of faith.
The main target of cyber attacks is the financial sector. Many unbanked communities also live in countries that have weak digital security, thus lacking the technical infrastructure to ensure secure transactions facilitated by new technology.
To overcome these threats, governments must work with fintechs to enforce regulations governing how (and by whom) the technology is implemented and maintained.
Supermarket chain joins the world of fintech
When it comes to fintech UX, to ensure that everyone can easily understand and navigate the technology, the user interface should be simple: apply clear language and intuitive design.
You should also have personalized support, where chatbots and customer service channels are available to guide users.
Trust in financial services, both online and offline, is fragile, and mistakes can be costly, as people with bad experiences will quickly leave.
As technology powers financial services at scale, the industry must prioritize user testing and optimization. Especially for those making the big leap from being unbanked, technology solutions must align with their expectations and preferences, to be seen as credible and of long-term value.
Technology-driven financial inclusion is a strategy to engage people in safe and smart money management forever.
Research tells us that financially literate people are more likely to invest and make solid risk assessments around their finances, and fintech can provide such insight and make day-to-day transactions easier. Beyond facilitating payments, technology seeks to make financial inclusion an inherent feature of the modern world.