Why we should talk about Diversity, Inclusion, and FinTech?
Financial technology, popularly known as FinTech, refers to the new technology that aims to enhance and automate the delivery of financial services. Today, it ranges from
sectors like retail banking, investment management, and fundraising, to more complex financial streams like cryptocurrencies. Fintech innovations are revolutionizing the financial sector and have the potential to significantly improve the living conditions of disadvantaged groups of people through mediums like e-wallets, alternative credit scoring, crowdfunding, etc.
With an emphasis on bridging the gender gap, managing climate change risks, improving the inclusion of those who have been forcibly displaced, and bridging the financing gap for small enterprises, it seeks to accelerate access to and utilization of financial services. Hence the conversations on the intersection of Diversity, Inclusion, and Fintech is crucial.
Since there is more access to the internet than ever before, fintech companies have a significant advantage in locations where physical banks cannot be established. They can give unbanked and financially less-educated people access to fundamental goods and services and assist them in saving and growing their money by providing simple onboarding.
It is a well-known reality that people fall into the poverty trap because they lack the necessary papers, resources, and background to take advantage of the opportunities in the formal economy. Groups who are socially excluded are a typical example of the same. Due to the limited human interface that allows for exclusion, fintech companies, with their innovations and delivery mechanisms, make access to the financial landscape discrimination-free.
Most traditional banks require a huge amount of documentation. On the other hand, fintech businesses just need a minimal amount of paperwork. For the purpose of capital investment and microfinancing, this is very beneficial for small local enterprises. Fintech businesses also employ a variety of techniques to instruct their audiences. The way to move forward is through financial literacy. Fintech benefits from users’ knowledge of loan eligibility and credit standards.
A huge number of fintech companies that have arisen in the past five years have addressed the challenges of accessing the financial environment for borrowing, lending, seeking protection, or investing. Because of this, small firms have progressively been able to join forces with giant aggregators to offer services on websites like Amazon, Flipkart, and others. Additionally, it has made it possible for small and medium-sized businesses to look for and capture new markets online.
Finally, innovative financial technology businesses ensure safe online payments. They have had success using AI to develop instant digital payments that enable cashless buying, verification, transfers, selling, etc. They’re all about comfort and adaptability and are simple to use as well.
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