These three fintech trends are the key to building an inclusive future

Michael Schrein speaks TNW Valencia 2023 almost How fintech innovation can drive inclusive growthCheck out this discussion about the Impact stage on Thursday March 3rd.

The world has changed a lot in the last few years.Global Pandemic, War in Ukraine, Worsening climate change, widespread social unrest — all these challenges are having a major impact on families, small businesses and communities around the world. For the first time in our lives, global poverty and hunger are on the rise, and the economic environment remains uncertain and precarious.

As the challenges evolve, so do the solutions. Today’s challenges seem overwhelming, but we also see powerful opportunities to build fair, inclusive and resilient economies.according to Findex in 2021Over the past decade, more than a billion people have gained access to formal financial accounts, thanks to the digital revolution accelerated by the pandemic.

But two billion people are still excluded from the global financial system, making them even harder to reach. They are smallholder farmers, remote micro- and small-scale entrepreneurs and are often women.

As more people acquire basic financial tools, they will have access to a broader set of tools to use them to improve their lives and build resilience. A farmer can buy insurance to protect himself from climate disasters, a small business owner can access revolving his credit to manage problems in his chain of supply, and an aspiring software developer can save money. You can save money and learn new skills to increase your income.

Inclusive fintech is uniquely positioned to maximize these opportunities and meet these challenges. Accion launches one of the world’s first global fintech funds for the underserved, helping pioneer the inclusive fintech space, providing funding and support to nurture innovators We have seen how to disrupt the status quo to achieve meaningful social change.

Today we are particularly excited about three things Fintech Innovations that could fuel this momentum and address challenges disproportionately impacting underserved communities globally:

1. Embedded finance

Traditional finance often requires customers to go through complicated procedures, embedded finance Data can be used to anticipate customer needs and credit risk, and proactively serve customers.

For example, Accion Venture Lab, a seed-stage comprehensive fintech investor in Accion, Cassin Voice In India, leverage Data about small businesses can be used to embed supply chain financial products into the larger platforms they already use. This innovative practice has the potential to seamlessly provide millions of underserved people with the financial tools they need to improve their lives.

As more financial tools are integrated with all aspects of the digital economy, new entry points for finance built into platforms already used by end clients, such as retailers selling seeds to smallholder farmers. We are looking to expand our innovations to create We believe embedded financial solutions focused on reaching out to farmers, SMEs and women have great potential to advance resilience and inclusion.

2. Agtech Finance

2/3 Eighty percent of the world’s working poor depend on agriculture for their livelihoods, making them increasingly vulnerable to climate change. Providing farmers with new financial tools and digital capabilities can make them more resilient. And in the relatively new field of agritech, exciting innovations have emerged over the past few years with great potential to create social impact.

We have already seen promising results our work agtech fintech and Pula and apollo agriculture Leveraging technologies such as satellite imagery and mobile apps, we provide crop insurance, customized advice and credit to smallholder farmers in sub-Saharan Africa. Through the convergence of digital transformation and fintech, we are also deepening the impact of microfinance providers such as: Fundación Génesis Empresarial Guatemala and Dvara KGFS In India, we provide credit and other financial services to farmers.

As agtech finance continues to evolve, target other service providers within the agricultural value chain, such as aggregators, farmer union brokers and distributors, to better serve farmers and their communities I am particularly interested in

3. The future of work finance

More and more people earn their livelihoods through non-traditional employment models, such as gigs and informal work, making them particularly vulnerable to economic shocks. By developing financial service providers focused on these people, we can help them build a stronger foothold in the economy and strengthen their resilience.

For example, our fintech partners are my robin have Created A digital platform and our partners that provide Indonesian blue-collar workers with access to fair employment opportunities, training and financial services that strengthen their resilience and advance their careers. Ugaforde in Uganda help Refugees start businesses and access financial tools.

In the short term, we are exploring opportunities to support workers transitioning from informal to formal work through gig work platforms, prioritizing platforms for women. Longer term, we may also consider the global impact of automation, migration and forced displacement into the labor force. We also need to consider how solutions such as cross-border payments and upskilling can help build the economic health of these workers.

Accelerating change through knowledge and collaboration

Sharing our knowledge is essential to creating systemic change. Meetings like TNW Valencia are essential for sharing insights and exploring the impact of new innovations, including embedded finance., agtech, and the future of work — better assessing the effectiveness of our own work and facilitating demonstration models that enable providers to better serve their clients.

We look forward to working with our team and our partners in the public, private and social sectors to expand our impact. The future is uncertain, but the challenges of the past have given us new lessons, powerful tools, and greater determination to support those with the most urgent needs.

Want to learn more about inclusive fintech and Accion’s work in this space? Check out Michael Schlein’s FT Power Hour talk. TNW Valencia 2023 March 30 (Thursday) 13:05-13:25 at Impact Stage.