Among the key trends that emerged in the recent Money20/20 Asia 2024 event in Bangkok, Thailand include dispelling the myth that financial inclusion lacks sustainable business models.
According to Christiane Zhao, accessibility champion at SecurityTech company Giesecke+Devrient and technical advisor at Harvard University, financial inclusion has emerged as an attractive proposition for banks and fintech companies when leveraged effectively.
Zhao says financial inclusion targets two key groups: the unbanked, who are entirely outside the financial system, and the underbanked, who are underserved by traditional financial institutions.
She notes that different countries prioritise one group over the other, and one of the main challenges in achieving financial inclusion is improving access to finance through enhanced credit scoring and digital identities.
"Robust electronic know-your-customer (e-KYC) certification, spanning banking, finance, e-commerce, and gaming, is vital for seamless customer onboarding," Zhao says. "Notably, a significant portion of Asia's population is deeply engaged in online gaming and live e-commerce, necessitating accurate KYC processes for these accounts."
Open banking, facilitated through Banking-as-a-Service or Banking-as-a-Platform, offers promising avenues for fostering financial inclusion, according to Zhao.
Such avenues include financial management tools, diverse payment options, credit provision based on data from various sources, enabling instant micro-loan approvals, transparent banking and financial product comparison in competitive marketplaces, and remote onboarding and KYC certifications.
