Access to Financial Services is the Pathway to Socio-Economic Growth in Asia
Asia holds great potential for economic growth, but that potential will only be fully realized with increased access to financial services. Checking and savings accounts, lending platforms, and credit lines not only improve personal finances, but strengthen the overall national economy. Asia must take advantage of the opportunities offered by fintech in order to best progress economically.
Better Access to Financial Services Improves the National Economy
Better access to financial services offers more opportunities for receiving an education, launching a small business, and obtaining better healthcare, all of which can help lift a country out of poverty. Individuals who receive financing to open successful small businesses can in turn become employers, mentors, and economic fixtures in their communities. Mobile banking makes it less necessary to be dependent on physical infrastructure, which is often still lacking in developing countries.
Financial inclusion improves government services and reduces waste by allowing for the easy transfer of payments directly to business or personal bank accounts. This streamlines the entire process, cuts out unnecessary government spending, and frees up more resources.
Fintech is Becoming More Commonplace Throughout Asia
Income disparity in Asia is being slowly reduced, but some persistent snags remain, particularly in the gaps between urban and rural populations, between the rich and the poor, and between men and women. Efforts are being made throughout Asia, however, to expand fintech platforms thus making it easier to save money and to have access to financial services. A total of 61% of the Chinese population made digital payments in 2017. Bangladesh, Malaysia, Cambodia, and Indonesia have also been increasing their use of fintech.
The implementation of cost-reducing policies is also important to narrowing the disparities. Each country, with its own unique population, requires its own formula to improve the situation, but overall, the right combination of government action and technological innovation is what will help move these regions forward.