6 Tech Innovations Transforming Financial Inclusion in 2024

New technologies are revolutionizing financial services, making them more inclusive and accessible than ever before. From overcoming physical disabilities to bridging geographical divides, these innovations are breaking down traditional barriers and fuelling the financial industry into its future Financial Inclusion

This guide explores some cutting-edge tech that’s reshaping the financial landscape, ensuring everyone can participate in the economy. Let’s dive in.

Biometric Authentication

Biometric authentication uses unique physical characteristics like fingerprints and facial recognition to verify identity. This is a game-changer for financial inclusion. It simplifies access to banking services, especially for those who have no formal identification documents. The added layer of security it offers helps reduce fraud, and automatic identity verification speeds up transactions. 

Additionally, biometrics eliminates the need for remembering complex passwords. For example, a farmer in a remote area or an older person with memory loss can quickly authenticate a transaction using a fingerprint, without grappling with codes or cards. This technology makes banking both secure and accessible.

No Credit History Credit Cards

Not everyone can build a traditional credit history. Low-income earners, recent graduates, or new immigrants often face this barrier, making it tough to get standard financial products that are essential for today’s living and working. 

Here’s where alternative products like some of the leading no buró credit cards come in. These credit cards are designed for those without a credit history, serving as a bridge to mainstream financial services. By offering credit without the prerequisite of a credit history, these cards enable people to start building their credit profiles. 

Alternative Lending Options 

Traditional lending methods can exclude those without good credit or conventional job roles. Alternative lending options come into play here. These include:

• Crowdfunding: This is an approach to funding where multiple individuals contribute small amounts.
• Microloans: It involves small loans targeted at small businesses and entrepreneurs, usually provided by traditional or alternative lenders.
• Paycheck Advances: This method allows professionals to access their wage before the regular payday, which can help streamline personal cash flow and finances.
• Peer-to-Peer (P2P) Lending: This method directly connects borrowers with individual investors willing to fund loans.

These options offer quick, accessible finances to people who might not qualify for conventional loans. For example, a freelance worker may secure funds through a peer-to-peer platform without waiting for job income statements. In turn, these new financial products play a key role in enabling greater financial stability and independence for everyone.

Digital-Only Banking Platforms

Digital-only banking platforms, driven by fintech innovation, deliver banking services exclusively through mobile apps and websites. This model eliminates the need for physical bank branches, providing accessibility to those in remote or underserved areas. 

These platforms also offer a range of services like virtual wallets, real-time transfers, and savings accounts. Plus, because they have lower overhead costs, they can offer more affordable products to their audience. 

Think of a small business owner in a rural area managing all financial transactions through a smartphone app. By digitizing banking, fintech makes financial services reachable and affordable, promoting inclusivity across different demographics.

Voice-Activated and Accessibility-Focused Apps

Voice-activated and accessibility-focused apps are designed to assist individuals with disabilities. They use voice commands, allowing users to perform financial tasks like transferring money or checking balances without needing to navigate complex menus. These apps often incorporate accessible features like screen readers and high-contrast displays for visually impaired individuals. 

For example, someone with limited mobility can check their credit score or pay bills using voice commands alone. This type of technology breaks down barriers, enabling people with disabilities to access a range of financial products and services.

Keeping Up To Date With the Technologies That Are Reshaping The Financial Landscape

Innovations like biometric authentication and digital-only banking platforms are already transforming how we access and engage with financial services. However, new technologies continue to revolutionize this field. Be sure to stay up to date to access the latest features and support banks and processes that are leading the change.