{"id":10939,"date":"2018-09-24T10:08:39","date_gmt":"2018-09-24T10:08:39","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=10939"},"modified":"2018-09-24T10:08:39","modified_gmt":"2018-09-24T10:08:39","slug":"fintech-for-the-financially-excluded","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/fintech-for-the-financially-excluded\/","title":{"rendered":"FinTech for the financially excluded"},"content":{"rendered":"<p>The potential of FinTech to help financially excluded populations of the world is well-documented, with FinTech helping to reduce vulnerabilities, build assets, manage cash flows and increase income. Yet FinTech doesn\u2019t come without risks. &nbsp;Here are a few things to keep in mind when considering FinTech for the financially excluded:<\/p>\n<ul>\n<li><strong>The loss of high-touch customer service<\/strong> \u2013 human transactions are based on trust; this is especially the case with lower-income consumers. Proponents of algorithm-based lending argue that it eliminates subjectivity in decision-making, but it also often results in excessive standardization that overlooks suitability principles such as \u201csell only what clients need and can use\u201d.<\/li>\n<li><strong>The value of transparency<\/strong> \u2013 FinTech\u2019s algorithmic nature means that, many times, consumers can be refused a loan based on \u201calternative data\u201d such as geolocation, frequency of SMS use, phone charging, medical records, browsing history, social media profiles and online purchasing. But what recourse does someone have if rejected based on such data?<\/li>\n<li><strong>Ensuring ethical behavior<\/strong> \u2013 too aggressive of sales targets can mean dishonesty and unethical behavior from sales staff (in an effort to meet unrealistic quotas). This can increase risk to both&nbsp;the company and consumers. Establishing an environment based on ethical leadership will reduce this risk greatly.<\/li>\n<li><strong>Focusing on the end user<\/strong> \u2013 responsible FinTech for the financially excluded means including them in a way that also protects them. The ability to question assumptions and check where things might go wrong are characteristics of responsible lenders, as is accounting for the specific vulnerabilities of lower-income customers and exercising respect and sound judgment. In the end, remember that artificial intelligence cannot replace human empathy and human judgment.<\/li>\n<\/ul>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-10939 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='New Report Highlights Consumer Trends in Global Retail Banking'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/new-report-highlights-consumer-trends-in-global-retail-banking\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/01\/6c510c0c-7a71-4067-b4c1-fb8d4d85129f1-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-15711\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-15711'>\n\t\t\t\tNew Report Highlights Consumer Trends in Global Retail Banking\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='KMPG Pulse of FinTech Report'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/kmpg-pulse-of-fintech-report\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/03\/NEpE0N1-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-15854\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-15854'>\n\t\t\t\tKMPG Pulse of FinTech Report\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='BFC FinTech Monitor 1st \u2013 8th May'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/bfc-fintech-monitor-1st-8th-may\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2020\/05\/Untitled-2-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-14898\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-14898'>\n\t\t\t\tBFC FinTech Monitor 1st \u2013 8th May\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The potential of FinTech to help financially excluded populations of the world is well-documented, with FinTech helping to reduce vulnerabilities, build assets, manage cash flows and increase income. Yet FinTech doesn\u2019t come without risks. &nbsp;Here are a few things to keep in mind when considering FinTech for the financially excluded: The loss of high-touch customer &hellip;<\/p>\n","protected":false},"author":5,"featured_media":11066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[80,196,77,335],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/10939"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=10939"}],"version-history":[{"count":4,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/10939\/revisions"}],"predecessor-version":[{"id":11067,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/10939\/revisions\/11067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/11066"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=10939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=10939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=10939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}