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Whatever form money takes, throughout history it has enabled the development of the social and economic systems of various civilizations. It allows you to trade in goods and services, allowing you to plan and save for the future.
How do our aims and intentions chart the course for the future of fintech?
As the saying goes, money makes the world go round.
At the recent Fintech Week London, I had the opportunity to talk about my mother. We talked about how her uncontrollable circumstances determined the path she took, the choices she made and the choices she couldn’t make.
When we think about choices, we must think not only of the immediate consequences of our actions, but also of the long-term consequences of our actions and inactions in our daily lives.
Doing nothing has an opportunity cost.
This is even more important as we continue down the path of digital transformation.
The use of QR codes has increased in recent years, especially after the Covid outbreak. In Hong Kong, for example, scan his QR code on the LeaveHomeSafe mobile app to present proof of vaccination and gain access to venues (including restaurants) for contact tracing purposes. Some restaurants are using QR codes to place orders and payments in an effort to reduce contact.
Many of us have long been accustomed to various forms of contactless and digital payment methods. But if the airline’s app doesn’t have a credit card pre-loaded (as is the case with United Airlines), you’ll be told you can’t order and pay for food on long-haul flights, or that you’re not allowed to eat out. Imagine being told or done. I do not have an e-vaccine pass.
In an increasingly digital world, how survive Don’t have access to a smartphone and affordable internet? To say that digital connectivity is a basic right is no understatement. Unfortunately, connectivity is still the prerogative of only the wealthy or those with other advantages, and he 18% of the world’s population suffers from internet poverty.
In many ways, the digital economy feels like it simply replicates the economic inequalities that exist in today’s analog world.
Still, all hope is not lost.
Access to formal and informal financial services and digital payments has increased dramatically over the past decade, according to the latest World Bank Findex database. Globally, 76% of adults will have a bank or regulatory account in 2021 compared to 51% in 2011, representing a 50% increase. Much of the gain is due to improved digital connectivity and the accelerated adoption of digital payments due to the pandemic and social distancing restrictions.
But getting access is just the beginning. Our ultimate goal should be how to help more people live better lives. Globally, nearly half of the world’s population (3.3 billion) is projected to live below the $5.50 poverty line per day.
A report released last November by the London School of Economics found that a third of self-employed respondents said they struggled to manage basic expenses. And this is not something that can be solved simply by promoting digitization and cashless. In fact, people who pay with cards are reported to be less able to accurately recall expenses than those who pay with cash. And those who use PFM tools can accumulate debt as well. No wonder some people are turning back to the tried-and-true method: cash as a means of controlling spending and controlling budgets.
After all, it seems our work is not done yet. But while we have the tools and resources to do more and do better, how do our goals and intentions chart the course for the future of fintech? do you want?
When if not now? If not us, who are we?
That’s the opportunity cost we have to consider.
About the author
Theodora (Theo) Lau is the founder of Unconventional Ventures. She is co-author of her Beyond Good and co-host of One Vision, a podcast on fintech and innovation.
He is also a regular contributor to industry-leading events and publications, including Harvard Business Review and Nikkei Asian Review.
