The financial world is currently experiencing a dramatic transformations, from the advent of cryptocurrency, mobile banking apps, and even banks that are challenging the status quo.
The trend is apparent in both the developed and developed worlds, with the revolutionary and easily accessible nature of digital technology possibly transforming the experience of more than 95 million bankless citizens across Africa.
How exactly have digital banking and apps changed the financial landscape of the world, and how is this impacting the lives of those less fortunate people for the better?
Bets on Minorities the truth about Digital Banks
The idea of people who aren’t banked is an intriguing one and it’s clear that digital banks are focusing their efforts on people of minorities and those who have difficulty obtaining traditional accounts.
A recent story in the news covered the transgender experience of Billie Simmons, for whom she had to go on a doctor’s visit three court appearances, and five trips to the bank before receiving a debit card under her name.
This highlighted certain of the strict and rigid verification procedures that are a part of traditional banks.
Simmons taking action by founding a new digital option known as ‘Daylight’.
It is targeted primarily at people who belong to members of the trans as well as LGBTQ community. It allows users to create an account online under the name they prefer, regardless of the name visible on their ID documents.
According to Daylight the number of LGBTQ-identified people is around 30 million Americans who identify themselves as LGBTQ and they are one of the few online banks that are targeting these communities and filling the ever-widening gap left by traditional lenders.
Helping migrants get paid on-time and in a fair manner.
Similar to this in a similar vein,
The Labor Organisation has reported that there more than 160 million migrants around the world, most of whom are clients of remittances.
If we look at the lower income brackets of these people, it is clear that the majority of migrants struggle to obtain seamless payment as well as the most basic of financial products. The reason is quite simple, as they are often not equipped with the documents required to satisfy those KYC (Know Your Customer) processes used by traditional banks.
Based on Matthew Sanders, who’s the Suits Me’s CEO, Suits Me,
“getting paid fairly, transparently and on time can be confusing for temporary and migrant workers, and can also be costly when cashing-in payment cheques or receiving wages to a nominated bank account.”
His brand is a great way to address these issues directly through providing customers with an access point to their very own easily accessible account that can be opened with no credit check or an extended registration.
In fact, low-income workers are now able to apply for Suits
Me’s basic account using a single photo and this highlights the way that digital banks are solving the issues of inclusion facing the various demographics of society that are not being considered.
This kind of disruption is exactly what the world’s financial system demands, and it has been dominated by massive and rigid corporations for too long.
