There is an expectation that everyone is keeping a bank account today. Yet, according to the World Bank Report, that isn’t always the case; as 1.7billion adults are unbanked worldwide. As stated by James Booth, VP, Head of Payment Partnerships EMEA at PPRO, this represents approximately one-fourth of the global population.
The report shows that most of the adults who do not have a bank account are from the developing areas of the world, such as China, India, Mexico, Nigeria, Bangladesh and Pakistan. According to Caren Robb, VP & COO, FINCA Impact Finance, claims that the Covid-19 pandemic has a disruptive force, depending on how we go about life and conduct business. However, its effect will undoubtedly be felt even more for the 1.7billion low income people worldwide who remain unbanked.
The Covid-19 pandemic has given rise to an unprecedented public fears about viral transmission via cash. Fintech can be a powerful resource to reach these communities and mitigate their exposure. Micro-entrepreneurs can secure themselves by doing business without visiting a bank branch through the use of fintech to transact and interact with banks. It is a fact that technology is taking a big part in our lives hence touch based business models leverage digital technology to serve customers while maintaining relationship through human interaction. This type of business model uses branchless delivery channel, including mobile banking, agency banking, e-wallets, cash-in-terminals and internet banking.
Covid-19 is already reinforcing existing trends towards increased digitalisation of payments. The coronavirus event has already accelerated the use and need of digital financial solutions among the world’s poorest populations. With the need to enforce the practice of social distancing, digital access points have been considered as the smartest way, and in some cases, the only way to access accounts and perform the day-to-day transactions. For instance, in Africa, Ghana is using digital finance as a monetary policy lever to reduce the spread of the coronavirus. The monetary authority of Ghana also eased KYC requirements on mobile-money, hence allowing the citizens to use existing mobile phone registrations to open accounts with major digital payment providers. The trajectory of the coronavirus in Africa is encouraging more countries and technology firms to include mobile finance as part of a broader response.
Promoting the use of fintech during the COVID-19 crisis has the potential to bring long-term modifications in how people access their money and can assert to be a driving force for change in financial inclusion, rendering digital financial services a new default practice for customers at the bottom of the pyramid.
Partnering with NanoBNK
NanoBNK, our fintech company is offering its services and solutions to help during this Covid-19 Pandemic in delivering Digital Transformation and omnichannel presence through its Digital Banking solutions: Internet Banking, Mobile Banking, Bill Payment, Agency Banking, Kiosk Banking and Micro Finance solutions.