The efficiency and security benefits that fintech companies have brought to developed nations have largely bypassed developing nations.\u00a0 However, fintech players are starting to disrupt the existing financial order in these markets as an increasing number of people own mobile phones.\u00a0 Since there is less of a digital footprint, the sophisticated algorithms that some fintech companies use to generate personalized offers or risk scores in developed countries aren\u2019t useful.\u00a0 Thus, in order to succeed in this environment, companies such as SERV\u2019D in India build apps that encourage users to expand their use of technology.\u00a0 SERV\u2019D helps households and its workers, such as nannies, drivers, and cooks, create simple work contracts and get paid online.\u00a0 The data that is generated captures the wage and payment info of over 400 million workers who would otherwise have no way of demonstrating their income for loans and other benefits.<\/p>\n
Another struggle consumers in developing countries face is the lack of a steady paycheck; many only have temporary jobs, which can be selling produce one month and picking tea the next.\u00a0 They also have unpredictable expenses which means the standard, rigid insurance premiums in developed countries are not a viable option.\u00a0 To combat this, companies such as Uber\u2019s Xchange allows drivers to participate in very short-term leasing programs that are a few months long and have a low down payment.\u00a0 In this sense, Xchange tries to meet consumers\u2019 flexible earnings with flexible financing.\u00a0 By adapting to developing countries\u2019 infrastructure and integrating financial technology in a way that plays to the lives of the people, these companies can play a crucial role in bringing these countries into the digital space.<\/p>\n
<\/p>\n
https:\/\/hbr.org\/2017\/01\/fintech-companies-could-give-billions-of-people-more-banking-options<\/p>\n","protected":false},"excerpt":{"rendered":"
The efficiency and security benefits that fintech companies have brought to developed nations have largely bypassed developing nations.\u00a0 However, fintech players are starting to disrupt the existing financial order in these markets as an increasing number of people own mobile phones.\u00a0 Since there is less of a digital footprint, the sophisticated algorithms that some fintech … Continue reading Fintech\u2019s Impact in Developing Countries<\/span><\/a><\/p>\n","protected":false},"author":1795,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","kk_blocks_editor_width":"","_kiokenblocks_attr":"","_kiokenblocks_dimensions":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-247","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"gutentor_comment":1,"qubely_featured_image_url":null,"qubely_author":{"display_name":"exwu","author_link":"https:\/\/blogs.scu.edu\/finis\/author\/exwu\/"},"qubely_comment":1,"qubely_category":"Uncategorized<\/a>","qubely_excerpt":"The efficiency and security benefits that fintech companies have brought to developed nations have largely bypassed developing nations.\u00a0 However, fintech players are starting to disrupt the existing financial order in these markets as an increasing number of people own mobile phones.\u00a0 Since there is less of a digital footprint, the sophisticated algorithms that some fintech…","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/users\/1795"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/comments?post=247"}],"version-history":[{"count":1,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/247\/revisions"}],"predecessor-version":[{"id":256,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/247\/revisions\/256"}],"wp:attachment":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/media?parent=247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/categories?post=247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/tags?post=247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}