Fintech could bring $3.7 trillion boost to emerging economies
More than 1.6 billion people can be reached by these technologies.Around $3.7 trillion (€3.3 trillion) in growth could be created by 2025 in emerging economies if governments increase the availability and use of financial technologies (fintech), according to a new report from the McKinsey Global Institute.
Two-thirds of that increase would be a direct result of digital payments, with people who currently have access only to cash entering financial systems to both receive and make payments.
"Digital tools allow us to reach people left out of financial services," Michael Schlein, president at Accion, a global microfinance and fintech non-profit, told Mashable.
"All of a sudden far distances that used to be insurmountable and transaction sizes that were prohibitively small are no longer."
More than half of the 1.6 billion people who can be reached by technologies such as mobile payments, digital savings accounts and access to credit are women.
Fintech would also benefit 200 million businesses, bring 95 million new jobs, $4.2 trillion in new deposits and $2.1 trillion in new credit to emerging economies.
In addition, this could eliminate a $110 billion loss due to corruption and other financial crimes by replacing cash transactions with digital ones.