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Q&A: Top four FinTech trends driving financial inclusion (Includes interview)

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Financial inclusion is on the rise globally as 69 percent of adults – 3.8 billion people – now have a bank account or mobile…
Financial inclusion is on the rise globally as 69 percent of adults – 3.8 billion people – now have a bank account or mobile money provider. Key to achieving this have been fintechs, according to Steve Smith of Finicity
Many people would not have adequate access to bank accounts without fintech innovations. Recent developments have increased inclusivity for the financially disadvantaged.
Speaking with Digital Journal, Steve Smith, CEO of Finicity, shares with us the top four trends he’s seeing drive the most financial inclusion. These are: alternative data, open APIs, mobile banking, and blockchain.
Digital Journal: What is the current state of the financial sector?
Steve Smith: It’s clear the digital disruption that we’ve seen in other industries has fully taken hold in financial services. One of the key outcomes of this digital era is that consumers now have high expectations on speed, simplicity and depth of control with their interactions. This is true in financial services, and as a result we’re seeing greater innovation and competition.
DJ: What challenges do FinTechs present to established finance companies?
Smith: Again, what we’ve seen in other industries has a parallel here, as the FinTech companies — or more appropriately the digital disruptors — are pushing the industry forward. The challenge for more established organizations is to keep pace. The rate of change is exponential, and it will only accelerate over the next few years. This is a good thing for everyone involved, but more so for the consumers of these services. We’re going to see individuals, families and organizations who are more in tune with their financial situations and are better prepared to make smart financial decisions. All of this has tremendous potential to improve the financial health of everyone.
DJ: How are established businesses responding to FinTech disruptors?
Smith: It really depends on the business.

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