FINANCIAL INCLUSION
Access to a smartphone is not just about the services that are available to those consumers on the ground – like digital payments or current accounts . It opens emerging economies up to new opportunities for inward investment : access to new marketplaces , fresh ways to connect with development aid , and , importantly , remittances from loved ones abroad . WorldRemit surveyed 3,000 international money senders and found that the main reason for their use was to help recipients cover the cost of education , healthcare , and utility payments back home .
Karen Jordaan says there are still challenges with fintech adoption – including inconsistent regulation , mistrust in technology , the high cost of internet access , and the challenge of connecting large , rural communities . But people are still coming online regardless : “ Last year , the World Bank recorded a 30 % rise in the number of adults using financial accounts to 71 % of the global population , something it attributes to fintech developments such as mobile money ,” Jordaan says .
What financial inequities still need to be addressed ? There are two stories to most statistics , of course , and the World Bank reporting that 71 % now use financial accounts is no exception . On the one hand , it demonstrates a remarkable rise in financial participation – spurred on by the pandemic and the way in which governments around the world chose to deliver relief and support digitally . However , it still shows that nearly 30 % are disconnected from the financial system – more , no doubt , in emerging markets , with developed economies likely dragging that statistic upwards . fintechmagazine . com 119