How can payment services professionals improve financial inclusion?

In my experience as a payment services professional, the payment landscape is ever-changing. Our goal is to make transactions seamless and convenient for people worldwide. One glaring issue is the exclusion of the unbanked from the financial spectrum. We are committed to building products that provide comprehensive financial access and seamlessly integrate with diverse lifestyles. This involves understanding unique challenges, engaging with different sectors, and crafting solutions that go beyond traditional boundaries. As professionals, we have a responsibility to contribute to a more inclusive financial future for everyone.

Facilitate microfinance initiatives and small loans for entrepreneurs and small businesses in underserved areas and Providing access to credit empowers individuals to grow their businesses and generate income.

Os profissionais de servi?os de pagamento podem aprimorar a inclus?o financeira adotando diversas estratégias. Primeiramente, a melhoria na infraestrutura de pagamentos, conforme discutido no relatório PAFI, da Banco Mundial, desempenha um papel crucial. Isso envolve identificar os elementos essenciais dos pagamentos de varejo e aprimorar a infraestrutura de servi?os. Além disso, a diversifica??o e a eficiência dos sistemas de pagamento, conforme destacado pelo FMI, s?o fundamentais para promover a inclus?o financeira. Os profissionais devem buscar solu??es tecnológicas, como fintechs, para tornar os sistemas de pagamento mais acessíveis e eficazes, beneficiando especialmente aqueles em regi?es desfavorecidas.

An essential insight I've gained is the profound impact of poverty on financial inclusion in Africa. Many, grappling with low and irregular incomes, live hand-to-mouth, making it challenging for a significant portion of the population to access formal financial services. This underscores the necessity for tailored solutions to address these economic realities. Additionally, the dominance of the informal economy presents another barrier. A substantial portion of economic activities in Africa occurs in the informal sector, hindering the penetration of formal institutions into these markets.

Utilize data analytics to understand the financial behavior of underserved populations, as this information can guide the development of targeted solutions that effectively address their needs.

Tailoring financial products to local needs is vital for effective solutions that resonate with diverse communities. In areas like rural Nigeria, where 40 million lack a Bank Verification Number (BVN), alternative identification methods are crucial. Using the National Identification Number (NIN) for small transactions can provide easier access to basic financial services. At Tingtel, we address this challenge by leveraging mobile phones. Recognizing that many lack a BVN or direct access to banks, we use airtime for financial services. Given the widespread use of mobile phones in various forms, from feature phones to smartphones, this approach ensures inclusivity by tapping into a commonly available resource in these communities.

Financial inclusion is like a key to a better life. I've seen how it directly helps with healthcare and education. It makes healthcare more affordable by offering cheap insurance, so people can get the treatments they need. In education, it helps families pay for their kids' schooling, opening up growth opportunities. Plus, it gives individuals and small businesses access to credit and capital, enabling them to invest in education, healthcare, and ways to make money, which helps everyone in the community. From what I've seen, financial inclusion is like a real force pushing for a better and more inclusive life for everyone.

In my experience developing products for financial inclusion, I have realized that it's imperative to have a "boots on the ground" approach.While many companies aim to foster financial inclusion through their solutions,there's a risk of merely enhancing existing banking experiences rather than providing excluded communities with genuine access to financial services.To build impactful solutions, one must step outside their reality and immerse themselves in the communities they serve. This immersion fosters a deep understanding of unique needs, steering clear of assumptions that may not align with the reality on the ground.Only by embracing this approach can we ensure that our solutions address the challenges faced by underserved populations

Recognizing the pivotal role of regulation in shaping our industry, I believe in the power of collaboration between the private sector and government to build a robust regulatory framework. As payment professionals, we can actively engage with regulatory authorities to share insights, contribute industry expertise, and collectively develop policies that foster innovation while ensuring consumer protection. Let's proactively seek opportunities for dialogue, collaboration, and co-creation to build a regulatory environment that supports sustainable growth and inclusivity.