Fintech: the Not So Little Engine That Can
by: Susan Joseph
Twitter: @susanjoseph1786
Back in 1930 when the financial world was in a precarious state, Platt & Munk wrote those famous words in The Little Engine That Could, “I think I can, I think I can.” Well, we are smack in the middle of a new financial revolution powered by technology and those words are directly relevant.
To those who are adopting financial technology to solve social problems, I say “I hope you can, I hope you can” and am inspired to see some of the developments that are occurring. We haven’t hit the ground running. There is a lot more to do. But let’s take a stroll through one of the most imaginative ideas around that can transform peoples’ lives for better, for real.
Imagine a country, Rwanda, where the nonbanked gain access to credit for their growing businesses because that credit is essentially guaranteed. It can happen. How? Through the creation of a credit insurance product enabled by fintech that helps banks feel secure in lending to borrowers who may not otherwise have access to credit.
Fintech allows the creation of this product and accessibility to it on a grand scale. It does more than that, though. It enables the emerging markets in this economy to grow and the standard of living to grow alongside. Plus, it provides a vehicle for financial education. So, fintech creates real and measureable improvements in peoples’ lives.
Because of mobile technology, the reach of fintech in emerging markets is unparalled. Mobile banking provides a solution to reach people in the nooks and crannies of the countryside. It also allows for easy and real time comprehensive data collection which can be used to develop on site analytics to evaluate and connect entrepreneurs with the dollars they so desperately need. A win-win for all.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.
The FINTECH Book is due to be released in April 2016 and is available for Pre-Order on Amazon.
