Partnerships are the key to addressing financial and digital exclusion
by: Marc Lien
The UK’s prominent technology sector contributes enormously to GDP, the internet industry alone accounting for roughly 8.4% GDP and is expected to grow to £225bn of the overall UK economy by 2016. It is important, though, that our focus is not solely on those that are already part of the digital revolution, but also on helping those that are currently excluded, by addressing challenges of financial and digital exclusion, and financial literacy. It is here that the true power of the FinTech community can and must be pointed. We are seeing some innovative and meaningful progress, but more must be done.
Day to day interactions with money have evolved through for example NFC, digital wallets, online payment, and customers’ expectations of banking services are rising rapidly. However, many people and businesses are being left behind. We have found that the problem of financial and digital exclusion is not solely the domain of emerging economies. In the UK, for instance, there are still 2 million people without a bank account, and the Lloyds Bank 2015 UK Digital Index highlighted that 25% of SME businesses and charities see digital as ‘irrelevant’ to them.
Whilst we are on a mission to help address the challenge by for example committing to deploy 20,000 ‘digital champions’ and by working with GoOn UK, we believe that the collective power of banks and the FinTech community can significantly help people and businesses maximise the potential of digital.
FinTech is the innovation beacon of the way our society will work tomorrow. It creates the path for our future and we should be nurturing this creative power through partnerships and sponsoring. Lloyds Banking Group has partnered with Startupbootcamp, Innovate UK, Innovate Finance and many more organisations to support the collective genius of the Fintech community.
We firmly believe that for the FinTech arena to make a lasting societal impact, large and small companies must combine their strengths to make a positive difference to the well-being of individuals and communities.
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.