Financial Exclusion Reasons and Solutions
By Rafi Ullah (@rafiafridi19)
Financial Exclusion is unawareness of financial of products / services. Unawareness can be under banking or unbanking. Under banking means people have bank accounts but having very limited use of services. They are not prepared, used to or need of fintech solutions. Unbanked refers to not using bank products and services at all.
There are several reasons to under banking and unbanking such as difficult to access branches, migration to other locations require same process again, low income, no savings, difficult to decide among different financial services, poor credit history, information provided is not understood by them, feeling insecure about using online banking services etc.
There are several mechanisms used to solve all these problems such as remote identification and KYC (Know your customer), Global identification, e Learning system, chat-bots (Natural Language Processing) for their help, recommendation systems, saving schemes etc.
Digital Transformation is to provide a complete platform that helps the user in every step of their journey. Blockchain and Artificial Intelligence solutions are the ultimate digital transformation solution.