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FinTech For The Underbanked

Blockchain is the biggest game-changer for the underbanked, providing easier, cheaper ways to transfer money. FinTech companies are already jumping onto it to produce products aimed specifically at the underbanked.

The FinTech industry has been focused on monetizing high income customers, and exploiting low income customers. When FinTech becomes a lowest cost system for the underbanked, underbanking will cease to exist.

Cheaper, nearly universally accessible tech is changing consumer behavior and how Financial Institutions reach customers. Fintech drives down infrastructure needs/costs as already in place mobile networks provide the rails to underbanked consumers.

The near future for the underbanked lies in cryptocurrencies. There are a number of lending platforms that are being built that would allow these underbanked individuals to be serviced by their peers on crypto lending platforms such as EthLend and Bitbond.

Fintech for the underbanked is poised for explosive growth. Ubiquitous cell phones and entrepreneurial ingenuity will converge to provide banking services in remote places in Africa and India.

FinTech products are being created for large developed economies, but not enough is being done for countries with smaller GDPs.

Online lenders are fiercely competing for the business of the estimated 64 million thin-file customers that want or need capital. One-third will choose the originator with the fastest funding times.

First, rising smartphone penetration creates unprecedented access to underbanked customers. Second, low yield and fierce competition in traditional credit markets are causing investors to look upstream towards the underbanked.