With 1.7 billion, i.e. 31 percent of the global adult population unbanked or underbanked, i.e. they don’t have access to banking facilities like a loan, savings account, or capital or mutual fund investments, one may have a false notion that these 31 are poor or underprivileged, but that’s not true. It’s just that they’re not at par with global standards and requirements to open a bank account, i.e. they lack a credit history and assets to exchange in support for a loan or borrowing money.
In 2019 FinTech solutions are expected to offer a complete software-as-a-service (SAAS)-based financial ecosystem that will bring virtual financial (i.e. bank like) services to these individuals, which either have nil or very low access to banks, i.e. unbanked and underbanked population, eliminating the need of a bank account. With mobile and desktop FinTech solutions like digital wallets, these people can easily transfer funds, make purchases, pay utility bills, as well as deposit money, with much ease. The important feature here is the elimination of the need of a traditional bank account or a credit check, allowing these under-privileged population even do retail shopping online.
With mobile communications and technology, the unbanked and underbanked population can easily empower themselves to economically uplift themselves. As per financial data and media reports, a roughly 66 percent of the global unbanked and underbanked adult population has access to a mobile device. This crucial keypoint ensures that financial tools, technology, and services, can easily be provided to these populations, with future expansion of financial services.