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Fintech for Financial Inclusion

Fintech for Financial Inclusion

by Fintech TimesJune 13, 2016

With the right digital partner, banks can boost financial inclusion using financial literacy tools, innovative credit scoring and biometrics

Even today, millions of UK citizens cannot access mainstream financial services. Meanwhile, financial institutions are missing out on a corresponding number of opportunities to rebuild trust and confidence in the market, refresh and grow their customer base, create prolific new markets, and develop sustainable demand for a new generation of products and services. Digital technologies are playing a fundamental role in addressing financial inclusion. They improve the accessibility, affordability and attractiveness of financial products and services. For traditional financial organisations collaboration is key. They should look to partner with new entrants and fintech companies to unlock the opportunities offered by digital.

Major areas for bank/fintech collaboration are mobile, data, blockchain and artificial intelligence. 

Here are some examples of fintech solutions banks could adopt to boost financial inclusion.

Online financial literacy tools

Cost-effective, efficient and easy to use tools that manage money.

EXAMPLE: Meniga’s personal financial management tools, allow users to see detailed breakdown of their spending across a range of categories, set spending targets per category, and compare their cash flow to similar customer groups.

‘Thin-file’ credit scoring

Credit decisioning for the unbanked or those with ‘thin’ credit files, through the use of innovative data, such as mobile phone payment history and social media.

EXAMPLE: AdviceRobo’s artificial intelligence platform combines data from structured and social sources with behavioural analytics, reporting and gamification elements.

Biometrics

Alternative methods of user identification and authentication, such as finger printing, retina imprints and selfies, bypassing the need for multiple passwords and traditional forms of ID.

EXAMPLE: BehavioSec, a behavioural biometrics provider, uses machine learning to authenticate users based on how they naturally interact with their device, i.e. the way they type or touch their phone screen.

Through successful collaboration banks will be able to deliver differentiated and engaging customer-led experiences, at speed and at scale.

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By Olivia Belletty, Senior Consultant at Capco Digital

 

 

 


 

This article was first published on The Fintech Times.

About The Author
Fintech Times
Fintech Times
The Fintech Times is the world’s first and only newspaper dedicated to fintech. Published monthly, The Fintech Times explores the explosive world of financial technology, blending first hand insight, opinion and expertise with observational journalism to provide a balanced and comprehensive perspective of this rapidly evolving industry.