The author emphasizes the need for network effects for the success of fintech firms, suggesting the use of local influencers to promote adoption of these services. He also discusses the persistent divides in access and usage of digital financial services among different populations, particularly women in developing countries. To improve digital financial inclusion, the author recommends investing in digital infrastructure, simplifying banking procedures and regulations, and promoting financial education.
Key takeaways:
- Fintech 3.0 is about inclusion, with the goal of bridging the gap between underserved populations and financial solutions.
- Artificial intelligence (AI) and machine learning are the main drivers of this fintech renaissance, with companies like ZestFinance and Pentaip utilizing AI to help source loans equitably.
- Achieving network effects is crucial for the success of any fintech firm seeking to promote financial inclusion, and this can be achieved by leveraging local influencers.
- New technologies offer immense potential to overcome the barriers to financial inclusion in developing countries, but addressing the gender divide, improving digital infrastructure, simplifying banking procedures and promoting financial education are crucial steps in realizing the full benefits of digital financial services for all populations.