While fin-tech firms’ efforts are making a difference in the lives of the world’s poorest, more than two billion people do not have access to a bank account.
This problem is especially acute in the Philippines, where more than 60 percent of adults do not have a bank accounts because of high fees, population spreads and other factors.
That makes it more expensive for the thousands of Filipinos living in Canada to send the estimated $2 billion per year home.
The complexity of the issue means it takes a variety of solutions to properly address it, Vancouver, B.C.-based fin-tech company nTrust says.
Prepaid cards allow the unbanked to easily use and money locally and internationally. Integration with third-party platforms and intermediary mobile wallets allows new companies to capitalize on the credibility of locally trusted brands and transfer money to and from a centrally stored service. Additional unions with banking networks help unify the fragmented Philippine banking network.
A key final piece is the ability for diaspora to pay bills from abroad and control its use at home, all without incurring high fees.