As the world becomes increasingly interconnected, fintech services have become an integral part of the global financial ecosystem. Fintech services offer consumers and businesses a range of financial products and services that are convenient, efficient and secure. However, the benefits of fintech are less widespread in the global picture. Many parts of the world still need access to important financial services. In some areas, the lack of traditional banking infrastructure has created an opportunity for fintech companies to step in and offer financial services that were previously unavailable.
Therefore, it is important to globalize fintech services to ensure a secure future, and the following are some compelling reasons why it is imperative to do so.
Access to financial services
Access to financial services is crucial for individuals and companies to be able to participate fully in the economy. However, many countries still need access to important financial services such as banking, credit and insurance. According to the World Bank, approximately 1.4 billion adults worldwide are unbanked, meaning they do not have access to formal financial services. This lack of access can have significant consequences, such as limited economic opportunities and increased vulnerability to economic shocks.
Fintech services have the potential to solve this problem by providing affordable, accessible and convenient financial services. For example, mobile money platforms, such as M-Pesa, have revolutionized access to financial services in Kenya, where over 80% of adults now use mobile money services. Globalization of fintech services can help ensure that individuals and businesses around the world can access the financial assistance they need to thrive.
Financial inclusion
Financial inclusion refers to the availability of affordable and reliable financial services to individuals and businesses, regardless of their socio-economic background. Globalization of fintech services can help promote financial inclusion by expanding access to financial services, especially in regions with insufficient traditional financial infrastructure.
India’s Digital India program is a good example of this, as it aims to increase financial inclusion by providing access to digital financial services such as mobile wallets and payments banks, which are particularly useful in areas with limited physical bank branches. By utilizing fintech, authorities and financial institutions can create more inclusive financial systems that benefit everyone.
Cyber security
Cyber security is a critical concern for the financial services industry, with cyber attacks and data breaches becoming increasingly common. Globalization of fintech services can help improve cyber security by promoting the adoption of best practices and standards across the industry. For example, the International Organization for Standardization (ISO) has developed a set of standards for information security management that have been widely adopted by the financial sector.
Fintech services can also leverage new technologies, such as blockchain, to improve cyber security by providing a secure and transparent way to record financial transactions. In conclusion, globalization of fintech services is essential for a secure future. Fintech services can help expand access to financial services, promote financial inclusion, improve cyber security and enable international transactions. However, it is crucial to address the challenges associated with the globalization of fintech, such as regulatory barriers and cultural differences, in order to achieve these benefits. We can build a safer, more secure and inclusive financial system for all by working together to overcome these challenges.
(This article was written by Praveen Paulose, MD & CEO of Celusion Technologies and the views expressed in this article are his own)
