With the purpose of including more people in the financial universe, the technology it has had to adapt to the needs of users, reducing existing gaps in digital literacy and making finance accessible to all.
beyond the ethical responsibility of technologythe Financial inclusion has the potential to support growth in countries and is positively associated with increases in GDP in developing economies in particular.
That is how technology can, and is shaping to a more inclusive financial sphere. Access to safer and smarter payment services
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In Latin America, many countries are highly dependent on cash transactions. However, paying with physical money can be dangerous.
Curiously, Internet penetration is high in the region, as well as 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 it also allows more communities to manage their money safely and quickly.
A springboard for companies to grow
Small businesses are often not eligible for credit from traditional financial institutions, because they are perceived as higher risk. In response, Fintech are creating alternative credit channels for SMEs. Peer-to-peer (P2P) lending platforms allow lenders to make an offer on a borrower’s loan requirements. In this scenario, the P2P platform acts as a connector and coordinator of loan agreements that small businesses would otherwise not have been able to access.
Overcoming financial traps, together
Technology is advancing by leaps and bounds towards greater global financial inclusion, however, there is still a way to go.
trIt’s main focus areas should be:
- cybersecurity,
- inclusive design and
- the generation of trust.
The financial sector is the main target of cyber attacks. Many unbanked communities also live in countries that have weak digital protections, thus lacking the technical infrastructure to ensure secure transactions facilitated by new technology.
To overcome these threats, governments must work together with Fintechs to implement regulations. that define how (and by whom) the technology is applied and maintained.
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When it comes to Fintech UX, to ensure everyone can easily understand and navigate the technology, the user interface should be simple: apply clear language and intuitive design.
youmust also have custom supportwhere chatbots and customer service channels are available to guide users.
Confidence in financial services, both online and offline, It’s fragile, and mistakes can be costly, as people who have a bad experience will leave immediately.
As technology powers mass financial services, the industry should prioritize user testing and optimization. Especially for those people who are taking a big leap from being unbanked, technology solutions must align with their expectations and preferences, so they are seen as reliable 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 thatFinancially literate people are more likely to invest and make sound risk assessments around their finances, and Fintech can provide such knowledge and facilitate day-to-day transactions. Beyond facilitating payments, technology strives to make financial inclusion an inherent feature of the modern world.
* VP Delivery Fintech Americas
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