May 18, 2018
Digital financial technology, and particularly the accelerated adoption of mobile phones around the world, has facilitated expanding access to financial services to hard-to-reach populations and small businesses at low cost and risk, according to the World Bank:
Digital IDs make it easier than ever before to open an account
Digitization of cash-payments is introducing more people to transaction accounts
Mobile-based financial services bring convenient access to remote areas
Greater availability of customer data allows providers to design digital financial products that better fit the needs of unbanked individuals
Massive lack of financial access in certain fast-developing countries has its hidden advantage in the long term for the economic and innovative potential of those nations. Having no long-established infrastructure and no traditional path of usage of financial services in a large part of a country, non-urban in particular, developing nations get to learn from the history of others and jump through stages of development, building the next generation of banking infrastructure and all associated niches from the grou ...