The global financial inclusion gap is huge and growing. According to a World Bank report, more than 2 billion adults worldwide remain unbanked and they are at risk of being financially excluded from the digital economy. While there are many reasons why people remain unbanked, lack of access to digital technology is one of the major contributors to this problem. In this article, we will explore how digital technology can help close the gap between those who have access to financial services and those who don’t by answering three key questions: What is Financial Inclusion? How Can Digital Technology Help Fight Financial Inclusion Issues? Lastly, How Cryptocurrency Can Contribute To The Financial Inclusion And Is It A Solution For The Unbanked Population?
Financial Inclusion and the Importance of Digital Technology
Financial inclusion is a global issue. It’s estimated that there are 2 billion adults without access to financial services, the majority of whom live in developing countries. In many cases, these individuals lack access because they live in areas that are too remote or rural for traditional banks to operate in.
The importance of digital technology in achieving financial empowerment cannot be understated–it has helped millions of people gain access to basic banking services (like savings accounts) while also increasing their ability to manage their finances effectively and efficiently.
What is Digital Finance?
Digital finance is the use of digital technologies to provide financial services. Digital finance aims to make banking more accessible, reduce costs and increase efficiency for customers by leveraging technology. The benefits of digital finance include:
- Increased access to financial services for all people
- Reduced costs for consumers and businesses alike
- Increased speed in transactions, making it easier for people who need money quickly (i.e., small businesses)
How Digital Technology Can Help Fight Financial Inclusion Issues
The digital technology that is revolutionizing our world can also help fight financial inclusion issues by providing innovative solutions to unmet financial needs. Digital lending platforms, mobile payments and other fintech-driven innovations are helping connect people with the capital they need to start or grow their businesses, expand their horizons, buy homes and build better futures for themselves and their families.
Cryptocurrency and Its Role in Fighting Financial Inclusion Issues
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros–they’re produced by people, and increasingly businesses, running computers all around the world. It’s the first example of a growing category of money known as cryptocurrency.
Bitcoin transactions are secured by military grade cryptography to make it impossible for anyone to spend bitcoin that they don’t own or corrupt the blockchain (the secure digital ledger that records every transaction). It’s also used in some cases to avoid third party seizures such as lawsuits against you or an account freezing order by your bank on behalf of another person or entity who has filed a claim against you
Digital technology can help fight financial inclusion issues by providing innovative solutions to unmet financial needs.
Digital technology can help fight financial inclusion issues by providing innovative solutions to unmet financial needs. By leveraging the power of the internet and mobile phones, digital financial services can be delivered more efficiently than ever before, allowing for greater access to those who need it most.
This is especially true in developing countries where many people are unbanked or underbanked – meaning they don’t have access to formal banking services such as savings accounts and credit cards. This can create significant barriers for those seeking out loans or other forms of credit in order to start businesses or get through difficult times like illness or unemployment (1).
The world is becoming more and more digital, which means that it’s time for us to start thinking about how technology can help fight financial inclusion issues. There are many innovative solutions available that can help people who have been left out of the financial system due to lack of access or education. These include cryptocurrency-based platforms like BitPesa and Stellar Lumens that provide access to digital assets like Bitcoin or Ether while also supporting local currencies like Kenyan Shillings or Ghanaian Cedi through mobile money wallets such as M-Pesa or Azimo