The world of finance is currently undergoing some incredible change, from the emergence of cryptocurrency to mobile banking apps and challenger banks.
This trend is also evident across both the developing and developing worlds, with the disruptive and accessible nature of digital tech potentially revolutionising the experience of around 95 million unbanked citizens in Africa.
But how exactly have digital banks and apps changed the global financial landscape, and is this really impacting the lives of less fortunate citizens for the better?
Betting on Minorities – The Truth About Digital Banks
The notion of unbanked individuals is an interesting one, and there’s no doubt that new digital banks are actively targeting minorities and customers who may struggle to access traditional accounts.
A recent news story covered the experience of transgender women Billie Simmons, for whom it took a doctor’s trip, three court appearances and five visits to the bank before finally getting a debit card in her chosen name.
This brought home some of the rigorous and inflexible verification processes that are associated with traditional banks, with Simmons responding by co-founding a digital alternative called ‘Daylight’.
This is focused primarily on members of the trans and LGBTQ community, and it enables users to set up an online account with their chosen name regardless of what moniker is displayed on their identification documents.
According to Daylight, there are 30 million Americans who identify as LGBTQ, while they remain one of several online banks who are targeting such communities and filling an increasingly obvious gap left by mainstream lenders.
Helping Migrant Workers to be Paid Fairly and On-time
On a similar note, the Labor Organisation has reported that there are more than 160 million migrant workers in the world, many of whom exist as remittance customers.
If we delve into the low-income bracket of such workers, however, many migrants often struggle to access seamless payments and even basic financial services. The reason for this is simple; as they often lack the necessary documentation to meet the KYC (Know Your Customer) procedures utilised by traditional banks.
According to Matthew Sanders, who’s the CEO of 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.”
Interestingly, his brand helps to tackle such issues directly, by providing clients with access to their own, accessible e-account that can be opened without a credit check or extended registration process.
In fact, low-income migrant workers can now sign up for Suits Me’s basic card account with just a selfie, with this highlighting how digital banks are directly tackling the inclusion challenges facing various overlooked demographics in society.
This type of disruption is precisely what the global financial landscape requires, with this having been dominated by large and inflexible corporations for far too long.
