The worlds 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 phoneoften a smartphoneaccess 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 Mxima 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 Mxima 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

 

 

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