How FinTech Is Addressing the Financial Needs of the Underserved
Over the past decade, financial institutions and FinTechs have transformed the financial landscape through the introduction of technologies that expand access to, and provide a number of new financial offerings for, consumers at lower costs.
In ETA’s 2021 white paper, How FinTech Is Addressing the Financial Needs of the Underserved, we outlined how members are at the forefront of using technology to broaden financial inclusion for underserved consumers through the following ways:
- COVID-19 Pandemic Economic Relief — Mitigates the economic impact of the pandemic by providing multiple options for both merchants and consumers to stay safe while continuing to engage in commerce.
- Diversity, Equity, and Inclusion — In addition to raising awareness, ETA members create an environment where every colleague can be themselves and truly feel included.
- Prepaid Products — Provide cost-effective, convenient, and innovative payment options for millions of consumers, including those who may not have access to traditional financial accounts.
- Nontraditional Payments — Provide innovative solutions in a changing economy.
- Financial Literacy & Readiness Programs — Empower consumers to take control of their finances and prepare for the future.
- Mobile Banking Services & Innovations in ADA Compliance — Provide financial independence and security for those demographic groups that lack easy access to physical FI branches, such as consumers in rural areas, the elderly, or persons with disabilities.
- Mobile Payments — Provide an alternative to cash and checks that allows consumers to pay for goods and services in an efficient, cost-effective, and secure manner.
- Peer-2-Peer Payments — Enable consumers to send money to each other via mobile applications.
- Expanded Internet Access — Offers affordable internet access in underserved communities domestically and abroad by improving infrastructure and reducing costs.
- Online Small Business Lending — Expands access to credit for small businesses seeking capital to grow their businesses.
- Interactive, Automated Tellers — Transform traditional FI branches by making them economically sustainable in previously underserved communities.
As the leading trade association for the digital transactions industry, ETA encourages policymakers to support these efforts through policies that encourage innovation and the use of technology to improve financial outcomes for all consumers.
Efforts by policymakers to regulate financial products and services should be done collaboratively and with careful consideration. We encourage policymakers to be sensitive to the risk of applying a uniform regulatory framework to all products and services, and appreciate the differences in those products and services and in consumer needs so as not to stifle creativity and innovation in the market. Such an outcome could reduce benefits and options to consumers at a time when new technologies are providing the underserved with unprecedented access to financial products and services.
Download How FinTech Is Addressing the Financial Needs of the Underserved here.