How Fintech Companies Expand Financial Access

In 2021, I became the first woman to head a unicorn in Israel, AKA Startup Nation. In many parts of the world, women are excluded from even the most basic financial services, so leading a fintech company is far from their reality. United Nations data estimates that 3.8 billion women live in the world, 50% of which are adults. According to the World Bank’s Global Findex Database, 1.4 billion of those 1.9 billion adult women, are unbanked. That’s 73.65%. Visit that statistic again. It represents a disturbing gender gap in financial access, with women being far less likely than men to have bank accounts or access formal financial services. This financial exclusion has personal impact. It diminishes women’s economic empowerment by restricting access to education and limiting their potential for personal growth and independence. It makes women more financially dependent, and therefore, more vulnerable. There's economic impact, too. Research by McKinsey highlights the economic loss due to financial exclusion of women, noting that closing the gender gap in labor force participation could add trillions to global GDP. Financial inclusion isn’t just a matter of equality – ensuring the same opportunities for all. It’s a matter of equity - ensuring women have the tools and access they need to fully participate in the global economy. That’s where technology enters the picture to level the field. The rise of mobile banking is a great example of innovation enhancing financial inclusion. According to a report by the International Finance Corporation, mobile money accounts are more popular among women in regions like Sub-Saharan Africa, where access to traditional banking is limited. Various fintechs provide financial literacy resources, helping women understand financial products, budgeting, and saving strategies. Other solutions include AI-driven platforms that offer personalized recommendations and advice, empowering women to make informed financial decisions. Aside from personal apps and solutions, fintechs can facilitate community-based lending and saving initiatives, allowing women to support each other through group savings or microfinance schemes, fostering a sense of solidarity and shared purpose. This International Women’s Day’s theme is "accelerate action". In my mind, nothing accelerates action like innovation. As we mark International Women's Day, let’s advocate and innovate to enhance financial inclusion for women worldwide. #IWD2025 #financialInclusion Papaya Global

40% of adults in Latin America still lack access to basic banking services. That's nearly 200 million people locked out of formal financial systems, unable to save securely, access credit, or build economic resilience. Building alfred taught me something: financial inclusion is both a moral imperative and a trillion-dollar opportunity. Demand exists. Accessibility doesn't. Traditional banks struggled to reach rural communities, informal workers, and small businesses. Fintechs are building apps that onboard users with a selfie and a smartphone. They're offering microloans via WhatsApp. They're turning street vendors into QR-code-powered entrepreneurs. This is happening because fintechs prioritize access over bureaucracy. The 40% represents the future of Latin America's economy. Build for them and you're unlocking growth that lifts entire communities.

Fintech on the African continent is not only about financial inclusion and payments. So an assumption that fintechs are competing with traditional banks for the same market may not tell the full story. Fintech has impacted the African continent, affecting the lives of millions of people, businesses, and the broader economy. Without mentioning financial inclusion, here are some ways fintech is making an impact: 1. 𝐌𝐢𝐜𝐫𝐨𝐥𝐨𝐚𝐧𝐬 𝐚𝐧𝐝 𝐌𝐢𝐜𝐫𝐨𝐟𝐢𝐧𝐚𝐧𝐜𝐞: Digital platforms have made it possible to offer small loans to individuals and businesses that are traditionally overlooked by banks. With mobile lending apps and peer-to-peer lending platforms, users can apply for loans and receive decisions within a short period. These enable small businesses to grow and generate income. It has a direct impact on SMEs which are the backbone of many African economies. 2. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐋𝐢𝐭𝐞𝐫𝐚𝐜𝐲: Many fintech apps incorporate features that help users budget, save, and invest. By empowering individuals with financial knowledge, fintech is promoting responsible financial behaviour and contributing to economic stability. 3. 𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐞: Fintech solutions are modernising Africa's agric sector, which is a major source of employment across the continent. For instance, digital platforms provide smallholder farmers with access to finance, crop insurance, and market information, improving productivity and income stability. 4. 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬: Fintech has led to a wave of innovation from pay-as-you-go solar energy to digital-only banks. For example, fintechs like Flutterwave are simplifying processes by providing a unified payment solution that connects Africa to the global economy. 5. 𝐒𝐭𝐢𝐦𝐮𝐥𝐚𝐭𝐢𝐧𝐠 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐆𝐫𝐨𝐰𝐭𝐡: By facilitating payments, access to credit, and savings, Fintech is playing a role in stimulating economic activity. In addition, fintechs are creating jobs and helping to develop the digital economy, which contributes to GDP growth. 6. 𝐂𝐫𝐨𝐬𝐬-𝐁𝐨𝐫𝐝𝐞𝐫 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: Fintechs have simplified the process of sending money across borders. This is beneficial for Africa, which has a large diaspora population, and remittances are a vital source of income for many households. By reducing the cost and time taken for such transactions, fintech makes remittances cheaper, quicker, and more efficient than traditional banking systems. 9. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐡𝐚𝐧𝐠𝐞𝐬: The rise of fintech has prompted regulatory changes, with governments and central banks developing regulatory frameworks to guide the growth of fintech. This is leading to a more defined and robust financial environment.   There are challenges associated with the rise of fintech in Africa. However, the potential benefits of fintech are enormous, and with appropriate regulation and oversight, it can continue to transform the continent's financial landscape. #fintech #Africarising #investments

Did you know that nearly 2 billion adults worldwide lack access to basic financial services? This startling fact highlights a major problem in emerging markets. Many potential borrowers in these markets lack formal credit histories, making it difficult for lenders to assess creditworthiness. Without access to loans, people in emerging markets struggle to grow businesses, afford education, and purchase homes. The lack of financial inclusion prevents economic mobility. Fortunately, AI and alternative data are transforming credit scoring in emerging markets. By analyzing mobile phone usage, e-commerce transactions, and other digital footprints, AI algorithms can effectively evaluate credit risk without traditional credit reports. For example, the company Cignifi is using AI to score borrowers in markets like Mexico, Brazil, and Indonesia. They've helped expand access to credit while keeping default rates low. The implications are profound. AI credit scoring unlocks loans for unbanked populations, fueling growth and opportunity. The tech can promote financial inclusion and economic development worldwide. AI is reshaping finance in emerging markets and creating new opportunities for lenders and borrowers alike. Learn more: https://lnkd.in/efzrpeCe #banking #partnerships #ai #fintech

At Katha VC all we do is invest in emerging markets fintech. And fintech is truly transforming emerging markets in several fascinating ways. Here are 5 definitive examples: 1. AI-Driven Credit Scoring: Tala, led by Shivani Siroya, operating in Kenya, Mexico, Philippines, and India, uses alternative data and machine learning to provide credit scores and microloans to individuals with no formal credit history. Their AI algorithms analyze over 250 data points from a user's smartphone to assess creditworthiness. Tala has also expanded its services to include financial education tools and savings products, further enhancing financial inclusion in these emerging markets. 2. Mobile Money: M-PESA Africa, led by Sitoyo Lopokoiyit MBS, in Kenya has revolutionized financial services by allowing users to store, send, and receive money using their mobile phones, significantly increasing financial inclusion for millions of previously unbanked individuals. 3. Digital Banking: Nubank, led by David Vélez, in Brazil has disrupted traditional banking with its user-friendly, fee-free digital banking services. It has grown to serve over 100 million customers across Latin America, offering services such as credit cards, digital accounts, and more. 4. Payment Processing: Flutterwave, led by Olubenga Agboola, in Nigeria has made significant strides in providing seamless and secure payment solutions for businesses across Africa, integrating various payment methods and catering to both local and international markets. 5. Digital Payments: Paytm, led by Vijay Shekhar Sharma, in India has evolved from a mobile recharge platform to a comprehensive digital wallet and financial services provider, offering a range of services including bill payments and online shopping. These are just a few of the incredible companies that are building financial services for emerging markets! #fintech #emergingmarkets #venturecapital

Closing the Gap: FinTech's Role in Financial Inclusion in the U.S. Financial inclusion isn’t just a buzzword, it’s a pressing need affecting millions. According to the FDIC, 4.5% of U.S. households (around 5.9 million) were unbanked in 2023, meaning no one in the household had a checking or savings account. Additionally, 14.1% of households (approximately 18.7 million) were underbanked, relying on alternative financial services like payday loans or check-cashing services. This is where FinTech startups are stepping in with innovative solutions to bridge these gaps. Here are a few companies making an impact: Bankuish (Filance AI) Targeting gig workers and freelancers in the U.S., Bankuish’s Filance AI leverages non-traditional data, such as cash flow and work history, to help underbanked individuals build financial credibility. By enabling access to credit and financial tools that traditional institutions often overlook, Bankuish empowers the growing gig economy workforce. TomoCredit TomoCredit provides credit to thin and no-credit borrowers using a proprietary algorithm that assesses cash flow rather than traditional credit scores, expanding financial access to underserved populations. Payactiv Payactiv addresses paycheck-to-paycheck living by offering earned wage access, enabling employees to access their earned but unpaid wages. This reduces reliance on payday loans and improves financial stability. LoanWell LoanWell partners with community lenders to automate the financing process for small and medium-sized businesses, reducing loan processing times and boosting access to capital. Stratyfy Stratyfy uses AI to help lenders assess consumers without extensive U.S. credit histories. By incorporating alternative data, they enable fairer and more inclusive underwriting, helping more people gain access to credit. These startups exemplify the transformative potential of FinTech, creating opportunities for those excluded from the traditional financial system, and it's one of the reasons I love FinTech. Any other players making an impact that you've been impressed by? #FinTech #FinancialInclusion #Innovation #Startups

Driving Financial Inclusion: The Next Steps Financial Inclusion ensures individuals and businesses can access financial services, fostering economic growth. While India has progressed through digital advancements, innovative credit models, and supportive policies, more efforts are needed—especially in rural areas and among women. Expanding Digital Access Reliable and affordable internet is crucial for financial inclusion. BharatNet, India’s largest rural telecom initiative, will connect 2.5 lakh Gram Panchayats with broadband, while TRAI’s proposal to cap broadband costs will enhance affordability. These initiatives will bring financial services closer to rural communities, ensuring accessibility. Empowering Women Through Credit Enhancing financial access for rural women is essential. Over 54.5 crore Jan Dhan accounts have been opened, with 57% belonging to women. However, women hold only 20.8% of total bank deposits, with rural women accounting for 30%. The number of women borrowers has grown at a CAGR of 22% since 2019, with 60% from semi-urban and rural areas. Traditional credit evaluation methods often exclude women engaged in informal work. Fintech innovations, mobile banking, and AI-driven credit models are bridging this gap by offering a more inclusive assessment of creditworthiness. Alternative credit models focused on ability and intent to repay will enable more women entrepreneurs to access financial support, driving economic participation. YES BANK's Commitment A truly inclusive financial ecosystem requires innovation, partnerships, and financial literacy. At YES BANK, we are committed to financial empowerment by leveraging digital solutions and community outreach. YES BANK is driving financial inclusion through #DigitalBankingUnits (DBUs), which provide seamless financial access in remote areas, and #YESMoney along with our #BusinessCorrespondent (BC) network, which bring essential banking services closer to underserved communities. Additionally, our AI-driven credit assessments for MSMEs enable faster loan approvals, while financial literacy initiatives equip individuals with the knowledge to make informed financial decisions. A Collective Effort for Financial Inclusion Achieving financial inclusion requires collaboration across industries, policymakers, and financial institutions. By leveraging technology, financial literacy, and innovative credit models, we can build a system that empowers individuals and businesses to participate actively in the economy. An inclusive financial system doesn’t just enable growth—it fosters resilience, opportunity, and long-term prosperity for all. #FinancialInclusion #DigitalBanking #WomenEmpowerment #RuralBanking #FintechInnovation #MSMEs #BankingForAll #EconomicGrowth #CreditAccess #FinancialLiteracy

The Current Embedded Finance Landscape 💡 Financial services companies have a unique opportunity to address societal issues by serving new markets. They are in a position to impact almost every corner of the economy and proactively rebuild trust with those who have been historically underserved. Embedded finance is a significant and growing market opportunity, and it’s opening new avenues for firms to increase their footprint and expand into underrepresented markets. Embedded finance capabilities and solutions include: 💳 Embedded payments: Embedded payments provide convenient experiences that enable customers to pay for services during the checkout process. 🛡 Embedded insurance: Embedded insurance allows customers to add insurance coverage to products or services at the point of sale. 💰 Embedded lending: Embedded lending provides customers with flexible financing offers to borrow and delay payments at the point of sale. 📈 Embedded investing: Embedded investing enables customers to grow their assets in a simple process, with low barriers to entry. 🎯 Embedded banking: Embedded banking provides customers and users with the capabilities of a bank within the distributor platform, so they can receive income and access funds faster. 📊 Embedded financial health: Embedded financial health allows customers to advance their financial literacy, financial access, or financial health by building credit and receiving feedback on spending habits. Below are three principles financial services firms can embrace to win underserved customers. 🙋♂️ Elevate financial access Underserved and underrepresented populations have likely faced rejection or exclusion from financial services in the past, and hope for access to services that are better designed, welcoming, and take into account their circumstances. Examples of features that can resonate include low to no fees, flexibility with non-traditional employment situations, and not requiring unnecessarily lengthy applications. 🔎 Embed education and support Services that help enable long-term goals, stability, and financial wellness are differentiating for underrepresented groups. These services include extended hours, comprehensive digital services, relevant financial education, personalized up-scaling of products, and support to help them balance their long- and short-term needs. 📱 Design intentional experiences Underserved groups are looking to be met where they are. New solutions that clearly communicate how and when fees are charged, balance flexibility with mutual accountability, and reward good financial habits can go a long way in establishing trust. Financial services organizations can also establish an easily navigable marketplace to improve connection and announce new services. Source: Deloitte - https://t.ly/Y6Cto #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #API #FinancialServices #Payments #Insurance #Lending 

India's financial sector is becoming a reference point for emerging markets. This Dun & Bradstreet report looks at how India's banks, fintechs, and insurers are improving profitability and making financial services easier to access. Here are my key takeaways: 🔶 Banks are reporting record profits, with stronger balance sheets and non-performing loans at their lowest levels in over a decade. 🔶 UPI's expansion into new markets is showing how low-cost, instant payments can work beyond traditional card systems. 🔶 Fintechs are moving deeper into the system, supporting areas like embedded finance, alternative credit scoring, and real-time lending models. 🔶 AI is being deployed across underwriting, fraud detection, claims processing, and customer engagement. This helps institutions serve more people at lower costs. 🔶 Alternative data sources like GST filings and e-commerce patterns are expanding credit access to small businesses and new-to-credit consumers. 🔶 Instant loans, micro-investments, and app-native banking are becoming minimum standards for younger generations. 🔶 Supply chain finance is picking up pace, with blockchain, embedded lending, and data-driven credit models offering new ways to fund working capital. 🔶 Cybersecurity is getting greater attention, with AI tools and tighter compliance frameworks helping financial institutions protect customer trust. 🔶 Insurance remains under-penetrated compared to global averages. But digital distribution and microinsurance models are driving steady expansion. 🔶 Collaboration between traditional banks, fintechs, and regulators is helping strengthen the sector without forcing zero-sum competition. India's financial system offers some interesting lessons that other markets will likely follow. #BFSI #Fintech #FinancialInnovation #couchonomics #payments #fintech #embeddedfinance #digitalassets #futureofmoney #futureoffinance NORBr Onalytica Favikon ⁠Global Finance & Technology Network Thinkers360 - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - - 👍 Hit like ♻️ Share it with your network 📢 Drop a comment 🎙️ Check out my podcast Couchonomics with Arjun on YouTube 📖 Get my weekly newsletter on LinkedIn: Couchonomics Crunch 🕺💃 In the MENA region? Join our Fintech Tuesdays community! 🤝 Let's connect! - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - -

Considering the amount of research dedicated to understanding consumer behaviour, it's surprising that the financial industry has been slow to explore innovative marketing strategies beyond traditional advertising. In contrast, sectors like FMCG have embraced tactics like 'sachetisation' to boost accessibility and brand loyalty among consumers. Sachetisation, an effective marketing strategy in emerging economies, involves offering products in small, affordable packs. From shampoo to cold cream to coffee, this approach has enabled FMCG brands to -penetrate under-served markets -introduce new products, and -reach rural and remote areas It harnesses the art and science of pricing consumer goods to attract a broader customer base. Recently, Phone Pe (mobile fintech company), launched health insurance that uses tech & consumer behaviour(link in comments). Monthly premiums via app makes it affordable & convenient, driving wider adoption. By tapping into consumer behavior and leveraging tech, #phonepe gains a competitive advantage/moat, that sets them apart in the market for now. In a country where the health insurance market is underpenetrated (currently at 35%), the incorporation of 'chota' (small) pricing within the mobile wallet may be the boost that the sector needs. This move could potentially bridge the gap, making health insurance more accessible to a broader range of people. It's good to see how Fintechs are evolving, challenging the incumbents and solving for inclusion. #fintechs #indianmarket #pricing #consumerbehaviour