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Briana Marbury , CEO at the Interledger Foundation , the nonprofit grantmaking foundation, explores how in 2025, this challenge will continue to be tackled with banks making new partnerships with paytechs. By automating traditionally manual processes, banks can lend to more borrowers, especially small businesses and underserved communities.
Unlike traditional banks and financial service providers, which are often constrained by legacy systems and processes, fintechs are often more flexible – enabling them to quickly build solutions that better support underserved communities. Its an industry of collaboration and partnership between fintechs and traditional banks.
It designs solutions that enhance lives, like providing underserved communities with credit or promoting financialliteracy. Venture-backed fintechs chase rapid growth and profitability, sidelining underserved communities as they focus on high-revenue markets. “A fintech for good embeds purpose into its core.
Many fintechs and financial institutions often make big claims that they can enhance support to the previously underserved, positively impact the environment, or improve peoples lives in many other ways. It requires measurable goals and a clear path towards continual improvement. But often, firms fall short of these claims.
In recent years, fintech apps have become pivotal in shaping financialliteracy among Millennials and Gen Z. These innovative platforms, often mobile-first and user-friendly, simplify complex financial topics. Traditional methods of financial education often failed to engage younger audiences effectively.
As BaaS evolves, it is helping fintech innovation reach new markets and underserved communities; which has the potential to greatly improve financial inclusion across the globe. Continuing our BaaS focus at the beginning of April, we asked industry leaders about how they’re seeing BaaS driving financial inclusion worldwide. .
Similarly, in Southeast Asia, mobile money platforms like GCash in the Philippines are transforming the financial landscape. These platforms provide a lifeline for people in remote and underserved areas. Investment in digital infrastructure is crucial for the continued growth of fintech in these regions.
. – FEBRUARY 21, 2023 – The Electronic Transactions Association (ETA), the trade association for the payments technology industry, today released its annual white paper outlining a variety of financial technology products and services that have broadened access to the payments and financial services ecosystems.
Yet, despite these challenges, the fintech industry continues to innovate and adapt, seeking new avenues for growth and development. In Asia Pacific, the lack of a skilled workforce and poor digital and financialliteracy were also factors, however this trend can also be observed globally.
April is FinancialLiteracy Month, when the nation is focused on spreading financialliteracy education to help consumers understand how to better manage money. With 106 million financially vulnerable Americans and many weakened small businesses as result of COVID-19, attendees felt the full weight of the statement.
This regulatory flexibility allowed non-banking institutions to offer financial services. Consequently, Kenya witnessed a surge in mobile payment adoption, improving financial access for underserved populations. The governments continuous support has ensured sustained growth.
Financialliteracy However, a significant challenge persists – financialliteracy, particularly regarding concepts like savings. Despite prevailing uncertainties, opportunities abound in wealthtech, especially as the sector continues its digitalisation efforts.
With a focus on community and connectivity, Kixy will launch its app soon, helping bridge the financial understanding gap for those who traditional financial services have underserved. Designed to enhance financialliteracy and foster a genuine sense of community, Kixy introduces a fresh approach to financial empowerment.
. “SteelWave Digital can further bridge the financial accessibility gap by expanding its strategic partnerships with global liquidity providers to enhance capital flows into underserved markets. Following this, they must then tailor education towards them. “In the world of finance, technology should and can serve people.
This five-year initiative aims to advance digital financial inclusion for 20 million individuals, including women, small holder farmers (SHF), and nano, micro and small enterprise (NMSE) owners across low- and middle-income countries in Africa, Asia and Latin America.
Yabx has been on this journey to build this credit infrastructure ground up and enable financial access for the underserved. Our platform leverages alternate data sources, enhanced digital journeys, and real-time decisioning to drive responsible growth in the financial sector. million consumers and MSMEs through the platform.
For example, they posted this activity for FinancialLiteracy Month: “The road to financialliteracy begins with the basics: money recognition! Why not buy from a company that’s going to help you continue to use that same toy instead of just pushing another one on you? What kinds of toys are you buying?
Separately, MAS is collaborating with the International Finance Corporation (IFC) and the World Economic Forum on initiatives to advance digital inclusion through financial services, with the aim of reducing inequalities for people and smaller businesses in emerging and developing economies.
Certainly, a paper check is better than nothing at all, Sohn continued. The mobile phone allows workers to manage their funds in a digital platform, set up online bill pay, and access resources to improve their financialliteracy. As Sohn explained, there are plenty of reasons. A professional may be coming to the U.S.
Founded in 2016, Akulaku provides digital banking, financing, investment and insurance brokerage services, targeting financialunderserved demographics. Further, the company continued its dynamic growth by increasing sales 10% month-over-month since its inception. billion to US$15 billion.
This includes promoting literacy, eliminating poverty and promoting vibrant financial institutional operations in Papua New Guinea. In 2014, the government set up the National Financial Inclusion and FinancialLiteracy Strategy. CEFI is also funded by the Bank of Papua New Guinea (the country’s central bank).
Our expertise also extends to developing innovative solutions that enhance access to credit and banking services for consumers and small businesses, especially in areas traditionally underserved by conventional financial institutions. What are some payment trends we’re seeing in Peru?
Open banking could drive significant advancements in financial inclusion across underserved markets. Branches Reinvented The debate surrounding the relevance of physical branches in the digital era continues. All of this can be made possible by lowering barriers to entry for new players and promoting interoperability.
This is an ongoing task requiring continual reviews, updates and improvements to utilise the latest insights and technology available.” This will continue to be true, especially as we look forward to what might be significant changes to our economy. For instance, clear communication and fair pricing are a must.
Another significant challenge is implementing sustainable practices and commitment to financial inclusion. “While the potential of financial inclusion is significant, expanding into underserved areas presents barriers such as financial illiteracy and limited access to technology.
With the rise of digital banking and mobile payment platforms tailored to the needs of Muslim consumers, financial services are now reaching communities that were previously underserved. These tools are designed not just to help Muslims invest, but also to empower them to understand and take control of their financial journeys.
The company plans to establish an internship programme for Emirati talent, launch financialliteracy initiatives for students and educators and introduce an international exposure programme for UAE Nationals. Alongside investment in technology and infrastructure, Alpheya is also committed to nurturing local talent.
Based in Cairo, the company’s approach centres on using its proprietary API First Core Banking platform to provide accessible financial services to underserved communities. Now the seventh-largest financial institution in Egypt, MNT-Halan holds over 25 per cent of the country’s microfinance market.
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