Innovations and Technology
With 1.7 billion unbanked people around the world, there is still a tremendous need for financial inclusion. Fintech is part of the solution, as digital innovations promise to make finance more convenient and less costly. FINCA Impact Finance stands at the vanguard of fintech innovation and financial inclusion, testing, developing and providing innovative financial products and services to low-income entrepreneurs in the communities we serve.
Fintech innovation and the rapid growth of mobile networks is allowing FIF to integrate digital technologies into new and existing services. This means more people can access impactful financial services without ever setting foot in a bank branch. As of the first quarter of 2019:
55% of transactions are processed through branchless channels
51% of transactions in Africa are processed by banking agents
9 subsidiaries offer mobile banking solutions
2 subsidiaries offer online banking
Fintech Innovation and Financial Inclusion
In Sub-Saharan Africa and Latin America, respectively, 27% of unbanked people report they don’t have a bank account because they live too far away from the nearest bank. In South Asia that number is 21%. Fintech innovations such as mobile and agency banking help by putting services closer to the people who need them most, right in their hands or just around the corner.
Fintech innovation can also reduce costs for users. In Pakistan, for example, FIF is providing more than 300,000 people with a free-to-use mobile wallet they can use to make payments and money transfers. That makes finance more convenient and less costly in a country where only 21% of adults have a bank account.
FIF recognizes that access alone can’t achieve financial inclusion. Empowering people means giving them the tools necessary to benefit from the products and services available. In Zambia, FIF is equipping its banking agents to provide clients with information about information on financial literacy, consumer protection and the financial products best suited to their specific needs.