What Works for Financial Inclusion: Data, Low-Tech Fixes…and Maybe Not Blockchain

January 19, 2023Softwarejoshua

The world�s elite are pondering how to expand access to banking and other financial services. Here are some takeaways from a Davos panel Thursday on financial inclusion:

Without a phone�often a smartphone�access to banking is difficult. Add the need for cellphone signal and identity documents, and financial inclusion can vary widely by country and region, said Queen M�xima of the Netherlands.
Understanding who needs financial services is key, said Shivani Siroya, founder of Tala, a smartphone-lending app. That insight comes from data gleaned by interacting with locals.
Such data can show, for example, when mothers are saving for school fees, or crops are being harvested, so companies can create financial products accordingly, Queen M�xima said.
Remittances, an important part of finance, show why making payments needs to be easy and digital, said Visa Chief Executive Alfred Kelly Jr.
Blockchain could help expand the reach of some financial services, but the panelists were skeptical it could be an immediate solution. Networks can be electricity-intensive, and volatility in digital assets makes it difficult to build trust.
Mr. Kelly of Visa argued for helping small businesses with low-tech solutions like point-of-sale devices that can allow payments even when the power is down.

Source:

https://www.wsj.com/livecoverage/davos2023/card/what-works-for-financial-inclusion-data-low-tech-fixes-and-maybe-not-blockchain-DuQL3hZ8VmPVhZJg5cqC?page=1