Fintech for small businesses will be key to tackling the world’s growing inequality
New tech tools could fill the widening gap
Going digital is powerful, but not perfect
While the digital horizon is expanding, many still lack access. Financial service providers, ecommerce companies, and others on the front lines of the digital economy should focus on reaching and including groups with limited tools and skills, like cash-reliant businesses, women, and those in rural areas.
But access is only part of the solution. While more people are using digital tools, it’s not guaranteed they are using them effectively.Researchby the Center for Financial Inclusion shows that many small businesses have been slow to go digital, or they are trying out digital tools only to stop using them. Companies can applya tech-touch balanceto support those who are using digital tools for the first time.
We must also think beyond access when expanding the reach of financial services to underserved groups. Financial service providers should build products that arespecifically gearedto improve clients’ financial health, as well as their understanding and awareness of their own financial situation. This is a win-win for both providers and clients.
In Latin America, with support from MetLife Foundation, wepartneredwith fintechs and financial service providers to develop new digital financial products specifically geared to improve clients’ financial literacy and health. Oneclientin Chile used a new digital revolving credit line to successfully grow and strengthen her wholesale avocado distribution businesses.
During this time of recovery, we can build new opportunities for everyone, but only if we focus on uplifting and empowering the people who are being left out today.
Story byMichael Schlein
President and CEO at AccionPresident and CEO at Accion
Get the TNW newsletter
Get the most important tech news in your inbox each week.
