Stakeholder collaboration-led innovation is vital in achieving financial inclusivity

In this modern era, we assume every individual would have access to something as basic as banking services and facilities; however, there are still over two billion unbanked adults in the world. Technology and the rise of financial technology (FinTech) firms have largely disrupted the traditional banking industry but have also created new ways in which the financially excluded can gain access to banking services. Two-thirds of the unbanked own a mobile phone and could potentially access mobile banking. In order to increase accessibility, however, much support is required from governments and operators to ensure the right connectivity and infrastructures are in place. Governments that aim to reduce financial exclusion need to approach the creation of business and regulatory environments holistically and understand the various existing technologies and innovations that can help facilitate access to financial products and services. Financial inclusion comes with inherent barriers that hinder the success of governments and financial institutions. These can vary according to a country’s literacy rate and gender inequalities. Addressing each barrier effectively will ensure that schemes are implemented to their full potential. It has now become evident that only collaboration-led innovation with various stakeholders will help reduce the number of unbanked individuals, which in turn will result in reducing poverty and promoting the economic growth of a country.