REMITTANCES
Is the developing world geared up for remittances ? Shanker Ramamurthy , BIAN Board Member and Global Managing Partner for Banking and Financial Markets at IBM Consulting , claims developing countries still face a host of challenges when it comes to banking , transacting and personal finances .
“ A lack of financial inclusion leaves them vulnerable to exploitation , limited opportunities for savings and investments , and , importantly , a lack of access to credit ,” Ramamurthy says .
“ Low levels of financial literacy hinder people ’ s ability to make informed financial decisions , which can perpetuate poverty and economic inequality ; while the cost of completing financial transactions in developing countries can be high , making it difficult for people to access financial services and for small businesses to operate profitably .
“ Many developing countries lack the infrastructure necessary to support modern financial services , including reliable telecommunications networks , banking infrastructure , and secure payment systems . Some developing countries have weak regulatory frameworks , which can lead to a lack of consumer protection and low levels of trust in financial institutions .
“ And gender inequality is prevalent in many developing countries , which can limit women ’ s access to financial services and economic opportunities . These challenges can make it difficult for people in developing countries to access financial services and participate fully in the economy .
“ Addressing these challenges requires a multi-faceted approach that involves building financial infrastructure , promoting financial literacy , improving regulation , and addressing social and economic inequalities .”
Ramamurthy suggests that “ financial institutions who want to be part of the solution to improving financial inclusion around the world should consider adopting the architecture standards put forth by the Banking Industry Architecture Network ( BIAN )”. They should be “ embracing a hybrid cloud approach to their technology infrastructure and leveraging the power of a robust , regulatory compliant ecosystem of fintech partners ,” he adds .
122 September 2023