Financial technology is not a figment of our imagination, but the fruition of innovation. As the world continues to transition from brick and mortar to click and order, the digitization and digitalization (because these are two different things) of financial tools are impacting communities around the world.
Let’s take for instance, online banking and how it’s transforming. Financial transactions can be handled from the comfort of your own home. From setting up an online account with your bank to paying bills, much of what required us to walk into a brick and mortar bank location in the past, can be completed from your fingertips (Ciber, 2020).
Another terminology for online banking is internet banking or web banking. This is because in order to bank online, the use of devices with connectivity is required to access the internet. When we speak about the internet, it’s important to also understand the impact of the infrastructure in which is needed to get good connectivity and access to online banking services.
Online banking can easily become mobile banking when access to the internet via your mobile.
A mobile device includes cell phone and tablets, etc. Mobile banking can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad (Estevez, 2020).
Mobile banking differs from online banking. Mobile banking is performed on an app using a portable device or using USSD. Online banking is carried out on any device with an internet connection (e.g, smart phone, desktop or laptop computer, tablet), and does not require a downloading of an application.
In fact, financial applications have continued to transformaton the financial landscape. In the United States, there is Cash App and Venmo – to name a few. In Africa, financial applications include Tigo, MTN, MPESA, and Flutterwave. Even more exciting is the capability for such applications to be integrated into eCommerce websites to support the facilitation of global sales.
Due to the continued innovation of financial technologies, barriers to entry for underseverd populations and communities, especially women and youth entrepreneurs, can more easily engage in the global marketplace. This angle requires its own write up because there are challenges but it’s important to notate the positive impacts globally.
In summary, financial inclusion is key to experience true impact globally. Innovation is transformation the landscape; it’s important to ensure nobody is left behind.
