HOW DO CULTURAL FACTORS AFFECT PROGRESS TOWARDS FINANCIAL INCLUSION ?
By Shanker Ramamurthy , Global Managing Partner for Banking at IBM
Overall , fintech adoption in emerging markets has been growing rapidly , driven by factors such as increasing access to mobile phones and the internet , a large unbanked population , and a growing middle class . Some regions have been particularly active in fintech adoption .
Cultural factors such as the extent of smartphone usage and cultural norms can significantly affect the needs of countries and the fintech technologies that are suitable . For example , in countries where the majority of the population has access to smartphones , fintech companies can leverage mobile apps and online platforms to provide financial services . In contrast , countries where the majority of the population does not have access to smartphones or the internet may need fintech companies to focus on providing services through traditional channels , such as brick-and-mortar branches or SMS-based systems .
Moreover , cultural norms can also affect the adoption and use of fintech services . For instance , in countries where cash is king and people prefer to use physical money , fintech companies may need to focus on developing solutions that allow users to deposit and withdraw cash .
“ Vulnerability isn ’ t about a minority ,” explains Junaid Mujaver , Partner at Newton , writing in the company ’ s latest Vulnerability Void report . Newton surveyed over 3,000 UK consumers – including those with specific vulnerabilities such as poor vision or hearing , learning difficulties or Alzheimer ’ s disease – to find out how those consumers interact with financial services .
“ Our research has found that the majority of people in the UK have a characteristic of vulnerability and all of us will have moments of vulnerability in our lifetime ,” Mujaver says . The research shows there is a “ rising tide ” of vulnerability , with neurodivergent diagnoses
134 August 2023