UNDERBANKED
driving innovation and economic growth . African fintech startups are taking advantage by giving their customers a level of access that traditional banks did not offer . This has increased financial inclusion , as building this digital infrastructure for less wealthy populations is paramount .
“ However , it is worth noting that such infrastructure must be stable and available throughout developing economies in order to achieve true financial inclusion .”
WHAT MORE NEEDS TO BE DONE TO BOOST FINANCIAL INCLUSION ? Despite the fact that fintech has accelerated progress towards greater financial inclusion in emerging markets , there is still more that needs to be done to close the gap . Indeed , even in advanced economies , the situation is critical . Two-thirds of Americans live paycheck-to-paycheck with little room to save money towards their life goals , for example .
In order to meet the needs of consumers in developing countries , service providers must first understand what those needs are . Taking Africa as an example , a portion of the diaspora has moved away in search of work or have been displaced – as is the case with volatile regions like Ethiopia , Eritrea and Sudan . This means low-cost remittances are a top priority right now , allowing African emigrants the opportunity to send money back home for family or friends .
Fintech still has the opportunity to address “ financial exclusion , financial illiteracy and unequal access to education ,” Shanker Ramamurthy says . “ Blockchain , mobile banking and digital identity verification can help address financial exclusion by providing simple and accessible financial services to those who are currently excluded .
“ INFRASTRUCTURE MUST BE STABLE AND AVAILABLE THROUGHOUT DEVELOPING ECONOMIES IN ORDER TO ACHIEVE TRUE FINANCIAL INCLUSION ”
BABS OGUNDEYI FOUNDER AND CEO , KUDA
132 August 2023