Financial technology — or FinTech — is changing the financial sector on a global scale. It is also enabling the expansion of financial services to low-income families who have been unable to afford or access them. The possibilities and impact are vast, as is the potential to improve lives in developing countries.
The financial sector is beginning to operate differently; there are new ways to collect, process, and use information, which is the main currency in this sector. A completely new set of players is entering the business. All areas of finance — including payments and infrastructure, consumer and SME credit, and insurance — are thus changing.
The transformation allowed by digital finance can come from increased competition and efficiency gains in the financial services industry with the potential of huge benefits to customers. The significant likely difference to the lives of the 2 billion adults globally who are still financially excluded does not come, however, without risks. These risks should be addressed so that FinTech’s benefits can be fully developed.
For more on this story visit the following link: Well-regulated financial technology boosts inclusion, fights cyber crime
Source: The World Bank