Finance and Accounting

Leveraging Digital Tools to Reach the Unbanked Population

While most of us take the availability of banking services for granted, globally, around 1.7 billion adults lack access to basic financial amenities such as bank accounts. In addition to these unbanked individuals, a significantly larger number of people the world over is underbanked, with access only to the most basic banking services due to an inability or unwillingness to avail the other services offered by mainstream financial institutions. This blog will explore how a digital transformation in financial services can overcome the challenge of making a wide range of financial services available to the unbanked and underbanked population, thereby promoting financial inclusion.

The rapid proliferation of smartphones and the internet is providing financial institutions with the means to expand relevant services to previously underserved regions and communities. By harnessing modern digital technologies, it becomes possible to overcome barriers such as economic instability, financial illiteracy, and the lack of traditional banking infrastructure to promote financial inclusion in areas that were previously marginalised.

Promoting financial inclusion through digital influence

Digital influence is the process of using the internet and other digital channels to mould people’s opinions, sentiments, and behaviours. Financial institutions can use digital influence to enhance awareness and build trust in financial services among previously unreachable sections of society. By incorporating tools such as social media, digital marketing campaigns, and influencers, banks and other financial institutions can expand their reach to underbanked and marginalised populations, thus driving financial inclusion in banking. Let’s take a closer look at some of the strategies that financial institutions can employ to make financial services more accessible to all.

Ease of access

A simple, easy-to-comprehend onboarding process combined with a streamlined user interface is an excellent way to connect with individuals who have limited experience with modern digital technology. The adoption of mobile-based services and strategies, as well as the use of local languages, can boost accessibility and inclusivity in new markets.

Relevant products and services

Understanding the needs of underserved markets helps financial institutions offer tailored services. Low transaction fees, flexible repayment terms, and microfinance options can meet customer demands and attract business in unbanked and underbanked areas.

Influencer collaborations

One way for financial institutions to connect with and build trust with underserved communities is to partner with influencers from within these communities to boost financial literacy within the population. These influencers can help financial institutions gain insights into local customs and cultural nuances, which can go a long way towards the creation of relevant services and targeted marketing activities.

Financial education

Initiatives that focus on financial education are another excellent way for financial institutions to promote sustained financial inclusion in previously underserved regions and communities. Digital platforms can be designated learning hubs to offer tutorials, resources, and various online tools to equip unbanked and underbanked individuals with up-to-date and relevant financial knowledge. By boosting the financial literacy of a region or community, financial institutions can open up fantastic business opportunities for themselves in unbanked and underbanked markets.

By using modern digital tools, financial institutions can engage with diverse communities and promote financial inclusion among underserved communities across the globe. Digitised processes make it easier to spread awareness, overcome geographical limitations, and create tailor-made products and services to suit the specific needs of marginalised groups. Strategic collaborations, modern solutions, and spreading financial education are just some of the ways to boost financial inclusion in new markets.

How can Infosys BPM help?

Unbanked and underbanked markets offer sizeable business opportunities to financial institutions, and Infosys BPM digital transformation financial services can help financial institutions make the most of these opportunities in a streamlined, systematic, and efficient manner. Incorporating AI, blockchain technology, and automation, the Infosys BPM Digital Finance Solutions offers financial institutions access to cutting-edge digital technology to help them expand their reach to unbanked and underbanked sections of society. Reach out to know more.

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