IRVINE, CA / ACCESSWIRE / February 7, 2023 / Poverty and discrimination remain significant tasks for leaders from countries around the world. All this is in spite of the progress registered both technologically and socially, in the recent century. Nowadays, we have many digital solutions that enhanced the pace of financial inclusion. The World Bank calls this phenomenon 'a cornerstone of development'. Financial inclusion is very important and it is also highlighted by the fact that this is a prominent element in eight of the 17 Sustainable Development Goals that the United Nations aims to achieve by 2030. 'Worldwide, around 1.4 billion people remain unbanked, the majority of them in developing countries,' notes Nick Kohlschreiber, founder of debt resolution platform AcuFi. 'With the advent of financial technology (fintech) in the 21st century, there is great hope that emerging economies will benefit from improved access to financial services and reap all the benefits associated with it.'
Fintech is a disruptive force that carries the promise of dramatic change across developing regions, according to AcuFi philosophy. The global pandemic provided a tremendous boost to the adoption of digital services, creating powerful ecosystems that have supported financial inclusion. Due to the rise of fintech, the proportion of account holders in developing countries has risen to 71% compared to 42% a decade ago, as per the World Bank's Global Findex 2021. As a result of this expansion, the people of these nations have benefited from new economic opportunities and improved household resilience to financial shocks. Moreover, fintech has helped narrow the gender gap when it comes to account ownership.
'While certain barriers to adoption remain, there is no doubt that developing countries stand to make tremendous gains by embracing fintech,' Nick Kohlschreiber says. 'The key issues now are reaching populations in rural areas, educating people about the advantages of alternative financial services, implementing effective regulatory frameworks, and guaranteeing consumer and data protection. Strong fintech adoption carries profound implications for the economic and social well-being of people in developing regions. Financial inclusion plays a central role in reducing poverty, creating jobs, driving economic growth, improving health, promoting gender equality, fostering innovation, and advancing sustainability.'
A study by the McKinsey Global Institute supports the case for widespread fintech adoption and its resulting impact on financial inclusion in the developing world. As the report notes, 'Digital finance has the potential to provide access to financial services for 1.6 billion people in emerging economies, more than half of them women. It could increase the volume of loans extended to individuals and businesses by $2.1 trillion and allow governments to save $110 billion per year by reducing leakage in spending and tax revenue. Financial services providers would benefit too, saving $400 billion annually in direct costs while sustainably increasing their balance sheets by as much as $4.2 trillion. Overall, we calculate that widespread use of digital finance could boost the annual GDP of all emerging economies by $3.7 trillion by 2025, a 6% increase versus a business-as-usual scenario.'
AcuFi is a debt resolution company dedicated to advocating for consumers burdened with unsecured debt to help them develop viable repayment plans and strategies. It provides debt resolution services to those looking for an alternative to bankruptcy, making it possible to reduce the amounts owed and settle the debts faster. AcuFi representatives work on behalf of the consumer with experts to create personalized debt relief plans.
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