The developing world and the developed world operate differently when it comes to many things, including Fintech. When looking at the more than 2 billion unbanked people across the world, the global economy had initially aspired for financial inclusion, or how to provide the unbanked with a seat at the table. However, for many of these people, living in third world countries means being excluded from the global economy.
Over time I came to realize that inclusion, or getting that coveted seat at the economic table, requires a different approach that is focused on accessibility.
The route to inclusion is based on services that are easily accessible. Many developing countries, having faced multiple constraints in joining the global economy such as electricity or internet infrastructure have circumvented these obstacles by creating their own Teleco Banking (Mobile Money) solutions that are easily accessible in their region, for example, Kenya’s M-Pesa.
Mobile Money has become so popular in vast parts of Africa and Asia that a real battle arose between brick-and-mortar banking institutions and Teleco Banking.
But the definition of banking is not confined to a bank account but rather to having access to financial services even without having a bank account.
Other technologies have popped up in Fintech. These Neo Banks include digital financial services such as Wise formerly Known As Transferwise, blockchain and crypto currencies. People no longer need to have a bank account to be part of the conversation in the global economy.
Despite the traditional banking institutions’ power and heavy regulation, they have come to realize that Neo Banking cannot be overlooked and have therefore adopted an “if you can’t beat them, join them” mentality, with the current trend indicating banks have embraced open-source technologies.
Banks are setting up finlabs where they can further investigate how they can replace traditional services with open-source solutions. The acceleration of open-source collaborations and extensions is beginning to drive the financial sector. The fintech industry is a fast-paced industry and banks are retrofitting accordingly to stay relevant and ensure continued growth.
“Open-source es el puente hacia la accesibilidad”
Accessibility has overridden inclusivity. Social media is another avenue where many pilots are currently being conducted to provide accessibility to financial services because people are already in the medium and it is easy for them to make financial transactions within the app. Grocery stores are becoming fintechs as well due to that same accessibility and ease of use.
The Fineract and Apache communities are driving this movement because this movement is being driven and instigated by people for people.
In many parts of the developing world, banks and Telecos have realized they can co-exist without being competitors. Banks are leveraging Telecos as extensions to reach additional clients, thereby forming Agency Banking Services. This breaks down large financial institutions into small service units, returning the power to the people. Open banking is something from which everyone can benefit.
When everyone works together despite their differences, everyone wins. The community becomes the main focus because services are easily accessible through different avenues, mediums, and platforms.
Fiter is building the necessary bridges and pathways to allow the different worlds of traditional banking and Neo Banking to integrate and communicate to support the change that is already in motion and gaining momentum every day. Open-source software belongs to the community for the community, with accessibility being the key to it all.
