How Fintech Is Powering The Global Economy

Entrepreneurs in financial services are helping to create a new middle class in the developing world. At the end of 2016, only half of the world had access to internet. Internet usage in third-world countries is growing tremendously, and those emerging markets hold potential and opportunity for fintech. This is because fintech is a necessity in these countries, compared to first-world countries that have many alternatives. According to McKinsey Global institute, widespread adoption of digital finance could increase the GDPs of all emerging economies by $3.7 trillion by 2025. Fintech can also bring a level of service enjoyed previously by only the wealthy, such as wealth management advisor services as a reduced cost through robo-advisors.

I agree with this article that fintech will help to increase inflow of money into the economy. Through adoption of internet in countries that lack it, this service has a brand new market to service. It is also accessible as long as there is internet, and may be the only option for transferring and maintaining funds in a country. By offering services at a fraction of the cost of traditional banking, it is able to reach to all socioeconomic classes by providing different packages.

One thought on “How Fintech Is Powering The Global Economy”

  1. This is a really interesting perspective considering that fintech is often discussed in the perspective of developed countries. It is interesting to see how it will help development elsewhere.

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