The lack of financial issues in underdeveloped areas has been a problem in the finance world. Financial inclusion means providing financial services to both the privileged and the underprivileged. This has been a driving factor in the provision of financial services by financial institutions. However, complete financial inclusion has not been achieved and this has widened the gap between the rich and the poor. Some people from underprivileged backgrounds have no access to financial services at all. While others have limited access which should not be so. Where electronic wallets are used to satisfy customers’ needs, it has now become a basic financial tool for the populace.
Moreover, financial inclusion is important for the economic, social, and environmental development of a country. Without it, some localities will feel isolated and have many financial burdens.
Fintech expert, Longji Vwamhi has stated that financial issues services are inaccessible to millions of people around the world. Longji Vwamhi is a Development Operations expert with years in the DevOps industry. Not only that, he has built and developed many businesses and Fintech firms as a way of solving financial exclusion.
He further stated that those from developed countries are not exempted from financial exclusion. This is because some developed countries have underdeveloped areas that lack basic amenities. Meanwhile, some African, Asian, and Latin American countries top the chart of countries that provided limited financial services. Because of this, the governments of these countries are striving to provide better financial services. Similarly, financial institutions have devised several plans on how to improve financial inclusion in these places.
Why Electronic Wallets Failed The First Time
When electronic wallets were first introduced, it was mildly received without fanfare. Then wallets were introduced in some African countries where the use of technology was not common. This was a time when the internet was not as popular as it is now. So, when e-Wallets were introduced, people didn’t know what to do with them. After all, they didn’t have access to the internet which made it difficult to operate an e-Wallet account.
Then the internet became popular, and access to the internet was almost all-inclusive. Bank customers started downloading and using e-Wallets and mobile apps. Soon enough, they got accustomed to the fast, easy-to-use, and access mobile banking apps and e-Wallets.
However, the popularity of the internet doesn’t mean that all issues have been resolved. As Fintech advances, so do the clients’ expectations and experiences. Almost everybody is tech savvy and demands more from financial institutions. Most electronic wallets have failed to keep up with the latest technological trend. This has been a disappointment to many because their financial needs are not met.
Issues That Some Electronic Wallet Providers Face
New technologies emerge daily and the fintech industry has to keep up. Older electronic wallets don’t have the features of new technologies. While the newer models are built following the latest technology. Hence, financial institutions that have not upgraded their technology have lost their clients to those who did.
The fintech and finance sector is a competitive one, where if you lose guard, you lose clients. Also, several startups and businesses that provide financial issues services have sprung up in the last decade. These firms are well-equipped with the latest technology and highly skilled. Older financial institutions see them as competitors and try to improve their business operations. This can be a tedious process because as the older institutions improve, so do the newer firms too. It’s a constant battle of trying to stay on top.
This is why most Fintech firms are focusing on financial inclusion as a way of attracting more clients. The wider their audience reach, the higher their client base. This will also be a way of providing financial issues services to those in underdeveloped areas and improving the economy. So it’s a win-win situation.
To this end, financial institutions have improved their financial digital tools to make this possible. They have redeveloped electronic wallets and mobile banking platforms to be inclusive. This new development has greatly improved the lives of people in rural areas.
Importance of An Electronic Wallet in Financial Issues Inclusion
It is Inclusive
People with special needs can now use electronic wallets, all thanks to digital assistants. There are voice assistants for those that are visually impaired and many more.
It is Secure
Unlike the older electronic wallet models, newer models come with body identification like voice, face, and fingerprints. Users can also use tokens and passwords to log in to their electronic wallets. Before you can do any transaction, you must authorize the transaction with a password or pin. Therefore, newer e-Wallets are secured.
It is Convenient
Electronic wallets are convenient to use. Nowadays, they come with user-friendly interfaces that are easy to navigate. You can also download e-Wallets on any mobile device of your choice. You access the wallets no matter where you are at any time.
According to Longji Vwamhi, the Fintech sector is yet to achieve total stability in all localities. The fintech sector has a lot to do with improving financial issues inclusions in remote or rural areas. Yes, it is not easy, but it’s not an impossible thing to do. The government and big organizations should provide technology and digital tools for the underprivileged. They should ensure that the tools they will provide are easy to use. This will not only improve their clients’ experiences, but it will improve the economy. It will also reduce the number of those that are excluded from getting financial services.