Most of us take our daily access to financial services for granted.Imagine living without access to a bank account, a loan or an investment product. That’s the reality for 1.7 billion people throughout the world. According to a study by the British research platform Merchant Machine, Morocco, Vietnam, Egypt, Philippines and Mexico are the top 5 countries where the unbanked population is the largest.
Why Are There Still So Many Unbanked People?
The main reason why people remain unbanked is due to the lack of funds. Many people simply don’t earn enough money to justify opening a bank account with exorbitant fees. A lack of documentation also plays a large role as many people in underdeveloped countries do not have access to any formal identification documents. Furthermore, physical bank branches are also not always conveniently located which often brings about increased travel costs and long waiting times.
Traderoot has been active in the fintech industry for over two decades and understands that these factors, combined with the exorbitant fees associated with traditional financial services, have paved the way for fintech and crypto to revolutionise the financial services industry throughout the world.
The Rise of Mobile Money and Cryptocurrency
Mobile money has been thriving in underdeveloped countries like Africa, the continent boasting some of the highest levels of mobile money usage in the world. According to a recent report by The World Bank, mobile money services, which allow users to store and transfer funds through a mobile phone, can help improve people’s earning potential, therefore, reducing poverty.
“Fintech innovation is the driving force behind financial inclusion, not only in Africa, but throughout the world,” says Francois Roode, Traderoot Africa Head of Business Development. “Traderoot is excited to play its part in driving this financial revolution.”
Cryptocurrencies like Bitcoin and Ethereum have grown in popularity over the past few years. Cryptocurrencies provide a faster, cheaper and more efficient way to transact. Cross border payments can be made in a matter of seconds, unlike with traditional financial services.
El Salvador recently adopted Bitcoin as legal tender, making the digital asset an accepted means of exchange for goods and services. Your digital crypto wallet could soon become the equivalent of a bank account and a payment card all in one.
There is no doubt that the fintech industry is set to disrupt traditional finance in a significant way, and Traderoot is excited to use our knowledge and experience in the industry to be part of this disruption. If you would like to learn more about innovation like this, speak with one of our consultants and let’s set up a strategic overview of how we can assist your operation.