The key issue of financial inclusion was addressed by Innovate Finance’s Global Summit and industry experts explored how financial technology can have a social impact by placing those that are unbanked onto applications that can help them to manage money. An estimated 2 million people in the UK are financially excluded and this is where alternative financing can benefit the unbanked or underbanked.
Banking the Unbanked
Financial exclusion affects those that have low or unstable incomes or those who have experienced a significant change in circumstances, but this does not mean that just because 50% of people with a basic bank account choose to manage their money in cash, they do not have complex financial lives. Worldwide, there are 2 billion people that are unbanked and fintech could offer these people innovative payments capabilities