Center for Financial Inclusion (CFI)’s Post

So excited to share this report that examines the different strategies being used by Egyptian fintechs as they seek to address the scarcity and dormancy of data trails from marginalized groups that can enable expanded access to financial services. We discuss the benefits and concerns of each strategy, identify key barriers and challenges in the ecosystem, and provider recommendations on how different stakeholders can play a role in developing a more effective and inclusive data economy. And a big shoutout and thanks to Edoardo Totolo, Dr. Nouri Sakr, Ayman Ismail, and Alexandra Rizzi for all of their assistance and input! Center for Financial Inclusion (CFI), FMO - Dutch entrepreneurial development bank

The Fintech Frontier: Redefining Financial Inclusion in Africa 📱🤖 Fintech missed the marginalized, but AI-finance solutions and institution-fintech collaboration can drive financial inclusion in Africa. 🌍 https://rb.gy/volqxm

Promise (Un)kept? Fintech and Financial Inclusion Check out my new working paper: https://lnkd.in/eQKgXJcH The emergence of financial technologies—fintech—has become an engine of change, promising to expand access to financial services and give a boost to financial inclusion. The ownership of accounts in formal financial institutions increased from 51 percent of the world’s adult population in 2011 to 76 percent in 2021, but there is still significant variation across countries. So has the rapid growth of fintech delivered the promise of broadening financial services to the under-served populations? In this paper, I use a comprehensive dataset to investigate the relationship between fintech and financial inclusion in a panel of 84 countries over the period 2012–2020 and obtain interesting empirical insights. First, the magnitude and statistical significance of fintech on financial inclusion varies according to the type of instrument. While digital lending has a significant negative effect on financial inclusion, digital capital raising is statistically insignificant. Second, the overall impact of fintech is also statistically insignificant for the full sample, but becomes positive and statistically highly significant in developing countries. Policymakers need to develop an adequate regulatory framework that balances fostering innovation and ensuring equitable treatment of individuals and groups. This requires better financial education, strong regulatory institutions, and well-calibrated prudential regulations for a level playing field and effective supervision. #fintech #financialservices #banks #financialinnovation #financialinclusion #finance #technology #innovation #startups #economics #macroeconomics #publicpolicy #centralbanks #imf #crypto #cbdc #digital #digitalmoney #digitalcurrency

Worldwide, ownership of accounts in formal financial institutions increased from 51% in 2011 to 76% in 2021 🎉 Does that mean #fintech has delivered on the promise of broadening financial services to underserved populations? A new paper from the International Monetary Fund shows mixed results: 💰 Fintech is revolutionizing financial services, making systems more efficient and expanding financial inclusion 🌍 Having a positive and significant impact in developing countries much more than advanced economies 🧩 Smart regulation may be the key to unlocking true potential for inclusion #FinancialInclusion #FinancialWellness #TechForGood

The emergence of financial technologies — #fintech — has become an engine of change, promising to expand access to #financialservices and give a boost to #financialinclusion. The ownership of accounts in formal financial institutions increased from 51 percent of the world’s adult population in 2011 to 76 percent in 2021, but there is still significant variation across countries. So has the rapid growth of fintech delivered the promise of broadening financial services to the under-served populations? In this International Monetary Fund Working Paper, the author uses a comprehensive dataset to investigate the relationship between fintech and financial inclusion in a panel of 84 countries over the period 2012–2020 and obtain interesting empirical insights. First, the magnitude and statistical significance of fintech on financial inclusion varies according to the type of instrument. While digital lending has a significant negative effect on financial inclusion, digital capital raising is statistically insignificant. Second, the overall impact of fintech is also statistically insignificant for the full sample, but becomes positive and statistically highly significant in developing countries. Policymakers need to develop an adequate regulatory framework that balances fostering innovation and ensuring equitable treatment of individuals and groups. This requires better financial education, strong regulatory institutions, and well-calibrated prudential regulations for a level playing field and effective supervision.

In the ever-evolving landscape of finance, data science emerges as a powerful catalyst for democratizing access to financial services. Unlocking the transformative potential of data-driven insights, financial institutions are paving the way for greater accessibility and inclusivity in the global economy. Through advanced analytics and machine learning algorithms, they're tailoring solutions to meet the diverse needs of individuals across geographies and socioeconomic backgrounds. From personalized lending solutions to investment advice tailored to individual risk profiles, data science is revolutionizing traditional banking models. By harnessing the power of data, financial institutions are fostering trust, loyalty, and empowerment among customers. Beyond traditional banking services, data-driven innovations are opening up new avenues for capital formation and investment. Peer-to-peer lending platforms, crowdfunding initiatives, and decentralized finance protocols are empowering individuals to participate in the financial markets like never before. However, as we embrace the opportunities afforded by data science, it's crucial to address potential challenges around privacy, security, and algorithmic biases. By prioritizing ethical and transparent practices, we can ensure that data-driven financial solutions are truly inclusive and equitable. In conclusion, the convergence of data science and finance represents a pivotal moment in our journey towards a more inclusive global economy. By leveraging the power of data, we can break down barriers, foster innovation, and create opportunities for prosperity for all. Let's continue to push the boundaries of possibility and build a future where financial access is not just a privilege but a fundamental human right. #DataScience #FinancialInclusion #Fintech #Innovation #Personalization #CustomerExperience #DeFi #AlternativeFinance #Ethics #Transparency #FinancialEmpowerment #InclusiveFinance #DataDrivenFuture

The Kalifa Review into the future of FinTech in the UK is now over 3 years old. The review has led to a number of significant outcomes for the industry, but the biggest gap continues to be data. One of the original recommendations from the review was to establish “….a data-led approach and maintain a national fintech database, which would provide open access data and ensure an evidence-based approach….” This is such an important foundation for national coordination on a number of levels - diversity, talent, international investment and sector development. An industry owner needs to be appointed to lead the development of this. If delivered well, this would be game-changing for the industry. #fintech #ukfintech #financialservices #kalifareview #data #innovation #founders

Discover how the Democratic Republic of Congo's new Congolese Fintech Network is revolutionizing financial inclusion and fostering industry collaboration, featuring key players like @Ecobank and @Deloitte. #Fintech #Innovation #FinancialInclusion #bankingindustry #money #finance #fintech https://lnkd.in/eHB2bYsa

𝙏𝙝𝙚 𝙁𝙪𝙩𝙪𝙧𝙚 𝙤𝙛 𝙂𝙡𝙤𝙗𝙖𝙡 𝙁𝙞𝙣𝙩𝙚𝙘𝙝: 𝙏𝙤𝙬𝙖𝙧𝙙𝙨 𝙍𝙚𝙨𝙞𝙡𝙞𝙚𝙣𝙩 𝙖𝙣𝙙 𝙄𝙣𝙘𝙡𝙪𝙨𝙞𝙫𝙚 𝙂𝙧𝙤𝙬𝙩𝙝 The #fintech industry continues to display #resilience and solid #growth, however many long-term uncertainties remain. 𝙁𝙞𝙣𝙩𝙚𝙘𝙝 𝙋𝙚𝙧𝙛𝙤𝙧𝙢𝙖𝙣𝙘𝙚 🆙 Fintech industry continues to grow in terms of number of #customers, highlighting sustained interest in fintech services. #Consumerdemand is driving the #fintechgrowth. 𝙃𝙚𝙖𝙙𝙬𝙞𝙣𝙙𝙨 🌪 Nevertheless, #macroeconomic factors are a concerning headwind, such as the #funding environment, lack of #digital and #financialliteracy of users, #interoperability between financial service providers, state of #digitalfinance #infrastructure, lack of #skilledworkforce. Despite the headwinds, fintechs have an overall positive perception of the #regulatory environment, but a significant percentage find certain aspects challenging due to the fintech #licensing and registration process, limited #coordination of financial authorities overseeing fintech, limited fintech knowledge and capacity of financial authority staff and clarity of financial authority approach. 𝙏𝙖𝙞𝙡𝙬𝙞𝙣𝙙𝙨 🛫 On a very positive note, fintechs are a vehicle to widen access to finance for traditionally underserved populations irrespective of the region with financially #inclusive products & features, green & #crowdlending, digital #ESG #data & #analytics. Furthermore, Fintechs view #artificialintelligence as being the most relevant topic for fintech industry development over the next five years. World Economic Forum University of Cambridge

🚀 Be a Part of the Future of FinTech! 🚀 We’re excited to collaborate with Cambridge Centre for Alternative Finance, Cambridge Judge Business School for Alternative Finance and World Economic Forum Forum on pivotal research to uncover the key trends and challenges shaping the global FinTech landscape. The 2nd Edition of the Future of Global Fintech Report will explore the topics: 💡 The role of Artificial Intelligence in FinTech  🤝 Partnerships between FinTechs and financial institutions  🌍 The role of fintech on financial access to underserved customer segments  📊 Performance and growth indicators across the sector We need your insights to help create a comprehensive dataset that will provide evidence-based insights to support decision-making for firms, regulators, policymakers, investors, and other stakeholders. Taking around 30 minutes to complete this survey (👉 https://lnkd.in/gPBEQK2z) will contribute to shaping the future of the Fintech industry. 📢 The findings will be freely accessible to everyone! Join us in driving FinTech forward—complete the survey today and make an impact! #FinTechResearch #AITrends #FinancialInclusion #DataInsights #Innovation #FutureOfFinance