With FinTech being a prominent topic not just in the financial sector but also within society, it has become evident that it has had such a positive impact on creating new opportunities for communities globally. In this week’s blog post we explore the correlation between fintech innovations and the possible impact it’s had on making communities safer.
One of the key ways FinTech contributes to ‘safer communities’ is the way it provides endless accessibility to funds at a global scale. Given that all digital payment/transfer platforms are free of use and only require a phone that has internet connection, therefore meaning they are able to reach remote areas where there might not be access to any physical banking institutions. This is a huge help for communities in remote locations as it gives them the means to be able to be more financially included and be equipped to face any situation that could occur.
Targeting vulnerable communities
Over the recent years especially after the catalyst there has been more campaigns to tackle financial issues within vulnerable communities for instance in 2021 there were some initiatives which saw banks teaming up with local communities to give them digital access to banking in a way that would directly aid them. This was particularly seen when ‘FinTech for international development’ was set up by Barclays and a child rights organisation in which they set up digital voucher platforms that connected families in need to a wide range of networks.
Global economic growth
From the time of the FinTech revolution until now, digital payment systems and platforms have effectively managed to connect communities together from all over the world. This is mainly through these platforms providing them with the opportunity to take charge of their own financial affairs without facing barriers such as discrimination which is possible in physical banking institutions. Overall having unlimited access to ones and provides them with a sense of security and safety and for the most part, that is what FinTechs are trying to achieve.
Potential for the future
After looking into the various contributing factors of how FinTech plays a part in creating safer communities, it is clear that a lot of advances within the sector have been made with supporting communities in mind. The way digital banking is becoming more accessible and financially inclusive this has opened the door to people from all walks of life becoming even more financially literate and be in charge of their financial well being which in some ways can also ensure safety.