Fidor, an innovative provider of digital banking services, today signed a Memorandum of Understanding (MOU) with IFC (International Finance Corporation), a member of the World Bank Group, to identify opportunities to expand digital banking services in Africa and Latin America to boost financial inclusion.
Some two billion working-age adults globally do not use formal financial services. Extending access to finance to them is the first building block to build a better life. Financial access facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies. As account holders, people are more likely to use other financial services, such as credit and insurance, start and expand businesses, invest in education or health, manage risk, and weather financial shocks, all of which can improve the overall quality of their lives.
As part of the agreement, both IFC and Fidor will attempt to grow financial inclusion by identifying financial institutions and partners to introduce or expand digital bank joint ventures. Fidor will provide its own proprietary technology platform – the Fidor Operating System (fOS) – for API banking to deliver financial services in a cost-efficient manner, in addition to share its knowledge in running a digital bank from the ground up.
Fidor’s operates by co-innovating with organizations that wish to launch digital banks by sharing both its banking expertise and cutting-edge technology. It does this by offering white labeled bank solutions covering technology, compliance, risk management, go to market strategy and customer service. Digital technologies are essential to enable IFC and the World Bank Group meet its goal of Universal Finance Access – enabling one billion more people to have access to a transaction account by 2020.
With this MOU, Fidor will work with IFC to introduce similar innovations to both Africa and Latin America to help bridge the financial inclusion gap. This MOU leverages Fidor and IFC’s expertise, existing portfolio of investments, franchise, industry relationships, co-investors, and other relevant stakeholder relationships in these emerging markets.
“Fidor’s business model is deeply rooted in providing fair banking in the most efficient fashion possible which aligns with financial inclusion agendas,” Fidor founder and CEO Matthias Kröner said. “Having access to financial services can improve people’s everyday lives in emerging markets. However, the benefits of financial inclusion are not only limited to individuals, and can help emerging countries’ economic and social development, as well as playing a significant role in empowering people and societies.
“The MOU with IFC aims to roll out digital banks throughout emerging countries and give access to financial services in order to boost financial inclusion.”