Financial inclusion platform powered by Fintech innovations reach the unbanked, poor and remote populations who have been excluded from traditional financial networks.Making Access to financial services possible by enabling to penetrate deeper into the unbanked in a profitable manner. Fintech providers are using a technology platform to provide new financial services or to improve the delivery of existing financial services with inclusive benefit potentials.
The concept of fintech platforms providers
The term ‘Fintech’ denotes ‘financial technology’ and is defined as the delivery of financial and banking services through modern technological innovation led by computer programs and algorithms. A Fintech provider uses a technology platform to provide new financial services or to improve the delivery of existing financial services such that the number of hurdles between requesting for a financial service and receiving the financial service is significantly reduced for users of financial services. Fintech providers are emerging in the financial services sector to complement the functions of banks to their customers.
Fintech platforms possibilities for the financial services:
- Fintech providers can provide quicker financial services with a seamless process, making it easier for low income individuals to manage their financial obligations on a day to day basis.
- Fintech platforms and applications do not handle deposits like banks which implies that Fintech providers will face fewer regulations (or will be unregulated in some countries) and the low regulatory burden they face makes it easier for Fintech providers to focus on improving their financial technology and intermediation function while reducing cost, where possible, to serve customers better.
- Fintech platforms providers can partner with traditional lending institutions which can help them reduce operational costs and improve the quality of their intermediation activities. Partnering with traditional lending institutions can help Fintech providers become sustainable over time, and the financial technology of Fintech providers can add value to the activities of the traditional lending institutions they partner with, particularly in ‘process improvement’ for their online lending business.
- Superior ability to provide instant emergency funds or loans in small amounts to individuals with low and poor incomes compared to banks and other lending institutions. This is because conventional banks and other lending institutions are not obliged to provide emergency funds to anyone, and any request for emergency funding at a conventional bank or lending institution must go through the usual credit risk assessment process which may be too lengthy for individuals that need instant emergency funds. This puts some Fintech providers in a better position to provide emergency funds in small amounts at higher interest rates to individuals with middle and low incomes.
- Fintech providers that operate via online platforms can electronically provide increased convenience to users by providing access to such services and making it available always from any location where the user or consumer can access the Internet. This enables Fintech providers to help customers to avoid having to travel to a banking hall to undertake financial transactions.
NanoBNK is the reference as a financial platforms provider, which uses the latest technology to make financial transactions accessible, cheaper, safer and faster. To deploy the benefits of financial platforms and get to know more about it myriad applications contact us here.