This article highlights how fintech is going to be the way that developing economies can grow in the near future and how they will not have the same banking institutions that we have in developed countries because of this. The article references how a fintech agency call M-PESA, a mobile money system introduced in Kenya in 2007, is widely popular and has more than 15 million subscribers. As of 2014, the subscribers transact nearly 60% of the country’s GDP over the mobile platform. This is an insane number! A report last year indicated that the usage of digital finance platforms in developing countries could increase the GDP of all developing economies by 6%, or a total of $3.7 trillion, by 2025. While it is obvious that mobile money systems is incredibly convenient for those in developing countries, it will change the economics and the institutions that we are accustomed to seeing in developed economies. Big banks will have to adapt to this new technology and academics will have to change their models on how emerging economies transform into advanced economies.
Article Link: https://www.forbes.com/sites/oracle/2017/03/14/how-fintech-is-powering-the-global-economy/#436435d71b5e