Embracing Diversity for Inclusive DeFi: Targeting the Unbanked populous through culturally informed and representative teams.

This article is an exploration of why diverse teams are the missing part of the success and mainstream adoption of Web3 and onboarding the Unbanked into a financial system that they trust and can truly be part of.

Introduction

The unbanked was a buzzword for many Web3 conferences, podcasts and think tanks in 2022. How do we as marketers and leaders engage, reach and capitalise on the unbanked populations? The unbanked in my opinion will be the missing element of mainstream adoption for DeFi instruments at large - and is critical for the success of emerging technology beyond.?

In the fast-evolving realm of decentralised finance (DeFi), the principles of inclusivity and accessibility are pivotal for driving global financial empowerment. The promise of Blockchain was to provide a new way to not only radically transform the foundations of technology, but to create a more sustainable and inclusive financial method, replacing the broken, outdated and centralised financial systems we are dependent upon today.?

As a seasoned CMO and organisational consultant for web3 companies, I have made a conscious decision to prioritise diversity within my team, (and teams I help build) by recognising the value that individuals from different regions and varied experiences bring to our understanding and output.?

What and who are unbanked??

Staying true to being a buzzword, the term ‘Unbanked’ has been thrown around flippantly often conflating it with poor financial ethics that render consumers in financially stable markets.?

One keynote I heard at a conference recently really drilled home this truth for me. The speaker expanded upon his reflections of the Unbanked. Captivated the audience listened on as he explained that the speaker himself could also full under this debate as he ran into debt and his bank automatically removed funds without his consent, (the conflation of custodial with the unbanked was humorous especially as he was a citizen of arguably one of the largest financial hubs of the world). The problem with this presentation is that it further perpetuates that the unbanked are the black market traders or those that abuse the current financial apparatus. This could not be further from the truth.

The term "unbanked" refers to individuals or communities who do not have access to traditional banking services such as savings accounts, loans, or credit cards. This lack of access can be due to various reasons, including geographical limitations, economic barriers, or a lack of official identification documents. The unbanked population is significant globally, particularly in developing countries or what we refer to in Development Economics as the Global South.?

However, most importantly - the unbanked are not just a subset of economies without banking. Arguably most of the Global South economies have banking services both state and private offered to them. Yet what underlies these economies to be unbanked is down to the mistrust and corruption that can ensue from those that are in charge of the centralised ledgers, the lack of understanding on where the money goes and more importantly the misused funds - what the bank was imagined as was a store and what it currently operates for many both in reality or in perception, is the profiting and sustainability for the rich.

My first-hand experience with 'the Unbanked'?

Pakistan

Born in the UK, to parents from South Asia - I spent my time split between both regions. I saw how money was stored in Pakistan in house safes (in wardrobes), under mattresses and very rarely used in banks, especially in the rural areas where my ancestral home was. Contrary to this, money in the UK was merely a transaction or a swipe of plastic.

Whilst Pakistan moves towards banking more of its population it still like many developing nations has a huge issue with gaining trust of the populus to store its significant funds into a financial system. Many in rural parts and cities, would rather invest into assets such as land, gold or business and be in charge of their own wealth and broker the whole process from start to finish. Majority of the people I spoke to in Pakistan, felt the banking system was inaccessible and difficult to navigate in setting up an account. Those who were banked only did so for their salaries to be paid (a prerequisite for many established companies in the country) withdrawing as soon as their salaries had hit their account.? I must note that there are native solutions being built which are trying to tackle this problem such as SadaPay , however, mainstream usage is still a dream for many.

Iraq

Similarly, in Iraq where I lived for over 18 months working within the tech startup space - the unbanked problem served as a huge issue especially for startups trying to get their feet off the ground in the digital economy. There are novel quick fix solutions using mobile phone credit as a means to pay for services, but whilst these are ways to solve for now - they are merely adding a piece of tape onto a colander trying to contain water. They are not scalable for future economies and not the basis for how trade needs to run smoothly. Large conglomerates such as Careem can offer in card payments but this infrastructure relies on the payment solution sitting elsewhere in the region and does not create ways for a system which can be autonomous and non reliant on other state or financial actors. Not to mention that startups and emerging economies do not have the dedicated resources? to supply such solutions efficiently.?

Uganda

I recall when I was asked to advise for an international marketing and data campaign, a group of strategists wondered how on earth could they deep dive and collect data for content dissemination and reporting in East Africa. It took two phone calls and one ‘field trip’ to Uganda to realise there were already local innovations that were using the radio and mobile phone call-ins to target rural communities in the country. This methodology meant opening up a huge market of data where it was merely impossible for the group of senior strategists sitting in London to ideate let alone conceive. By leaning in on the local ecosystem in the respective community, the project could expand its reach beyond.?

I could write a whole essay on the anthropological observations of these economies but to better understand the issue at hand, the simple part of my argument is not to preach to the unbanked but to empower those that represent the unbanked to be part of the building not just consumers that innovation from the global north attempt to down talk and force into their conversion strategy.

In this article, I delve into the significance of embracing diversity and explore how hiring talent from regions with diverse banking and financial sector experiences can enhance our ability to serve the unbanked, even in politically volatile environments.

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So the TLDR; Why your project and innovation needs more diversity? The simple answer that whilst the unbanked population is a global challenge but a tremendous opportunity.?

The unbanked population, those lacking access to traditional financial services, represents a substantial global challenge. Their exclusion from the financial system restricts their opportunities for economic growth and financial security. However, in the decentralized world of DeFi, there lies a tremendous potential to bridge this gap and empower the unbanked by providing inclusive financial solutions.

The Value of Diverse Workforces in DeFi

As a CMO, I understand that diversity within my team is crucial to comprehending the unique challenges and aspirations of the unbanked. By consciously seeking talent from different regions, we gain insights into diverse economies and financial sectors, both stable and politically 'volatile'. This diversity enhances our ability to design effective communication strategies and develop tailored DeFi solutions that cater to the unbanked's specific needs. Whilst I focus on marketing and communication, diversity in product is a necessary consideration.?

I recall one product I advised on which was creating a financial instrument for use. Without going into too much detail, I recall seeing the user interface completely worded in English - ie I want to do x via y and I will get z. My question was simple, how does this design work in localisation with countries that do not read or write in English, at which point no one in the robust team of experts had considered creating a localised and accessible product? I’m certain that this wasn’t done purposefully as it would be detrimental for the business reach, nevertheless - someone with a deeper cultural empathy could bring this forward to the scoping session rather than the day before a release or demo.?

Cultural Insights and Localisation

A diverse workforce with members hailing from regions with varied banking experiences fosters cultural competence. This allows us to navigate the nuances of different markets, understand local contexts, and build trust within unbanked communities. By recognizing the impact of cultural factors on financial decision-making, we can develop localised strategies that resonate with and empower the unbanked.

For example, articles and content, insights which can directly relate to different regionalities. Why is it that there is a surge of crypto usage and world-class thinking and building from emerging economies such as parts of Latin America, Nigeria and Turkey to name but a few. Circumstances that compel populations to use the technology create more loyal and committed communities. Therefore, circumstantial and experiential examples in copy which the unbanked can directly relate to create greater attachment to your product and ethos overall.

Linguistic Diversity and Accessibility

Hiring talent from different regions also brings linguistic diversity to our team, enabling effective communication with unbanked individuals across languages. This naturally prioritises user-friendly interfaces that cater to diverse language preferences and literacy levels. By breaking down language barriers, a project can ensure that DeFi solutions are accessible to a broader range of individuals, regardless of their linguistic background or literacy levels.

Web3 culture boomed during the pandemic when hiring in the mainstream turned towards the remote-working culture. Some of my friends who could not comprehend how I work remotely prior to the pandemic, were converted when they experienced it. After embracing remote work due to the organisational changes within their companies, noted how productive this arrangement was. Web2 companies and TradFi setups still will require certain locations and work VPNs to be used to deal with sensitive information.?

However, the autonomy of remote working has been celebrated as a luxury for the global North, but it becomes a means of necessity for cutting-edge talent and hires in the Global South. By leaning into less office culture and more productivity, Web3 is perfectly positioned to onboard unbanked economies and their talent to utilise and build protocols and products. What is required is a more fairer and accessible way to deal with these individuals, in an equitable way. I’ve heard hiring managers argue that an employee from New York deserves more than someone from Lagos due to their expense, however - if work is being achieved by both parties with the same end, this should be costed equitably not contextually.

Designing User-Centric DeFi Solutions

A diverse team offers the advantage of multiple perspectives when designing user-centric DeFi solutions. Talent from regions with diverse banking experiences can draw upon their insights to create customised products and services that address the unbanked specific needs and preferences. The successful startups with a diverse roster of employees recognize that there is no one-size-fits-all solution and strive to design offerings that are inclusive and adaptable to different economic contexts.

Think of it, if you are only familiar with fintech solutions in London but cannot see why this would be a challenge for someone living in Baghdad - your product cannot live up to the promise of being globally accessible.

Collaboration and Partnership

Engaging local organisations and community leaders is instrumental in reaching the unbanked. By partnering with stakeholders from regions with diverse financial landscapes, companies not only gain invaluable insights into their needs and challenges, but build lasting relationships which can comprehend the nuances that are there within the said context. Collaborating with individuals who possess diverse expertise helps us drive innovation and overcome barriers in serving the unbanked effectively.

A simple example is one individual who claimed they knew the Middle East and how religion works in the various states,? as they lived in Dubai. 4 hours drive to Muscat and the whole feel of society and context changes. Those that are informed are curious to explore the needs and understanding of how these contexts playout. For example, if you claim to understand the financial landscape of Muslim majority society but have never heard of Riba (interest which is deemed impermissible) your product will probably be isolating a lot of the Middle-East market that could be a sizable chunk of your user base.

Advocacy and Education

A diverse team plays a vital role in advocating for the importance of financial inclusion and raising awareness about DeFi among the unbanked. The best teams I have seen believe that education is a powerful tool for empowerment. Through initiatives that promote financial literacy and educate the unbanked about DeFi opportunities, they can empower individuals to take control of their financial futures.

Show up for those that aren’t currently represented in your meetings, and if you are not capable of doing that or believe they are not worthy - the problem is not with the unbanked but the choir that is preaching to them.

Challenges that are often imagined rarely exist. It’s not an expedition into the undiscovered, rather unlearning the biases we have designed our systems to support. I have hired from ‘unbanked’ economies, and done so very easily via LinkedIn and social media. Yes talent may take time to adjust, but the potential and opportunity is unfathomable.

Yes the unbanked population can suffer from a shortage of internet, but your employee program can easily be tailored to look at purchasing a UPS or a generator for the individual home which can cost less than $300 dollars. The Internet is a commodity but in this day and age, has become readily available. 4G has been faster for me in developing regions than some parts of the UK. Sometimes the consideration is not about the reality, but our perceived biases of how that economy or society actually operates.

We must look beyond the comfortability of traditional workforces and the heavy handed weight that the developed economies have muddied the way that new business will be conducted. If companies wish to survive in this new era, its about expanding and being truly inclusive of those they wished to not only engage with but solve for.

Conclusion:

As a CMO committed to fostering inclusivity, I recognize the immense value of diversity within a team in understanding and serving the unbanked population. By consciously hiring talent from regions with different experiences of banking and financial sectors, we gain cultural insights and expand our ability to design user-centric DeFi solutions. Through collaboration, advocacy, and education, we strive to empower the unbanked and bridge the gap between traditional finance and decentralised opportunities.