In the next year we will likely feel the full effects of the coronavirus-driven recession. It will fall to fintechs and the broader financial services ecosystem to build on the shining examples of financial inclusion and ensure the least fortunate in our society do not get left behind.
The coronavirus pandemic has thrown the inequalities of our society into sharp relief. It is a crisis that, according to the U.N., disproportionately affects the poor and vulnerable, illustrating how the inability of some groups to access financial services requires a meaningful solution.
During the past year we’ve seen some ingenious, innovative solutions addressing financial inclusion: Starling’s Connected Card allows people to make purchases on someone else’s behalf (for example, self-isolating vulnerable relatives); Soldo Care enables governments and charities to distribute money quickly and safely while maintaining budgetary controls; and B4B Payments’ partnership with Migrant Help has provided specially designed prepaid cards to individuals without the ability to access a typical bank account.
And these innovations aren’t just limited to Europe. In Brazil’s Marica neighborhood, a basic income distributed through the Mumbuca digital currency has provided support to people out of work as a result of the coronavirus. In the Asia Pacific region, there has been greater acceleration towards financial inclusion with the imminent issuing of digital banking licences in Singapore and Malaysia, through which we are seeing the emergence of exciting propositions like the Razer Card by Razer Fintech, which is targeting the banking needs of the underserved millennial and Generation Z segments through its Razer Youth Bank arm.
More than anything, the past year has shown how our industry can respond to massive upheaval with agility and innovative thinking. These qualities will be more important than ever as we seek to deliver hyper-personalized and inclusive experiences and products that customers demand in these constantly changing times.
Source : From the Web