A panel discussion from SxSW (South by Southwest) demonstrated ways that Fintech could boost the global economy. Two major approaches were emphasized: increasing internet users in the third world countries and high end fintech service in first world countries. It was argued that currently internet penetration in third world countries was far below the average world rate (50%), with Africa having an average of 26.9% and Asia having an average of 44.7%. In addition, users in the third world countries usually had fewer financial service alternatives compared those in the developed countries. Both these two factors create a great potential for Fintech to influence people’s life rapidly in developing countries and therefore contribute to their economic development. It was argued that fintech could increase the total GDP by 6% by 2025 for developing countries.
I think this forecast has some valid points. As we have already seen in some developing countries, such as China, fintech is dramatically changing people’s life in many areas. While in the U.S. some restaurants are still cash-only, one can make a payment on cellphone with even a small street vendor in China. This phenomenon could be explained somewhat by the fact that in China, people used to have fewer payment alternatives other than cash, and credit cards are not very popular even for today. Additionally, internet infrastructures are being designed and established at an unforeseen speed. Especially some wireless internet technologies, such as Facebook’s Aquila, a Wifi airplane, could make people in the developing countries get connected faster than ever before.
Source: https://www.forbes.com/sites/oracle/2017/03/14/how-fintech-is-powering-the-global-economy/#4ef9b39f1b5e