Financial technology adoption has been incredibly fast in the most advanced economies, but it’s a totally different story for what concerns emerging countries, where the penetration of digital finance services is still very low. The good news for those economies, and for those looking to do business there, is that the potential growth is now extraordinary, thanks to the level of smartphone penetration.
A new report called Digital Finance For All: Powering Inclusive Growth in Emerging Economies, by McKinsey Global Institute, estimates that with the adoption of digital finance, it is possible to create an additional 95 million jobs and $3.7 trillion in developing economies by 2025.
Currently there are approximately 2 billion people and 200 million businesses in the world that have no access to credit or savings. While only 55% of the adults in emerging countries have a financial account, there are about 80% of those that have a mobile phone, making the provision of financial services now viable which seemed out of reach not so far ago.
McKinney identifies, “a mobile and digital infrastructure, a dynamic business environment for financial services, and digital finance products that meet the needs of individuals and small businesses in ways that are superior to the informal financial tools they use today”, the key points for businesses and governments have to achieve in order to secure the benefits that financial technology could bring, as well to support the substantial transformation happening in finance in the emerging economies.
Finance pioneers are advised, the opportunity with digital finance is remarkable.
Read the whole article on Crowd Valley News.
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