Banks need to re-strategize if they want retain their piece of the pie in the coming years. But interestingly while everyone competes for a bigger piece, it is the size of the pie itself which is of far greater significance. As financial technology is advancing rapidly, it has paved the way to a new market that is up for grabs.
In the U.S there are about 67 million adults that have either no or limited access to conventional financial products such as a checking or savings account. In order to fulfill their financial requirements, these 67 million individuals must resort to the use of alternative financial services which are usually predatory in nature and lead to debt traps for the poor.
FinTech companies have the opportunity to innovate where traditional financial services have failed to deliver affordable financial services to the unbanked and underserved population, thereby toppling the barriers to financial inclusion.
At SVIC’s Banking Disrupted, PayActiv CEO, Safwan Shah maintains how developing FinTech for ordinary people and solving real financial issues of working people not only improves their financial well being but also increases the velocity of money in the economy. Through innovation and by building strategic alliances, together with banks and large employers PayActiv is helping businesses achieve their objectives while bringing financial wellness to their employees.
“..there is a massive transformation that is taking place. Rather than being critical of banks, lets think of an idea, the idea that is at the core of what we call movement of money between millions of people in this world.”
— Safwan Shah, at the Banking Disrupted Conference, Silicon Valley Innovation Center