Despite all the rumors about fintech, there is little evidence of how fintech-specific innovations solve financial inclusion problems and also achieve and achieve sustainability. A new CGAP report, “Fintech and Financial Inclusion: Looking Beyond the Hype and Exploring Its Potential”, identifies several early stages of fintech innovations driving financial inclusion, based on two years of pilot projects with 18 fintechs worldwide. The report also analyzes the challenges facing companies in developing countries in commercializing these innovations and raising funds for expansion.
Bernie Akporiaye, the founder of the digital financial services platform MaTontine, discussed some of the challenges facing fintechs: demonstrating customer value, the right partnerships to launch innovations, and attracting massive funding. Yaw Mante, the investment partner at investment firm Fintech Flourish, spoke of the need for lenders to broaden their horizons, beyond payments and credit innovations, and consider other fintech models that can improve the lives of low-income customers.