Brazil demonstrates that increasing financial inclusion and granting underprivileged individuals access to bank accounts is only a smartphone away. It is for providing FinTechs and Banks to those underserved populations. And assist them in moving beyond cash-based transactions. PayU Global Payments CEO Mario Shiliashki stated that full-scale, collaborative efforts between nontraditional and traditional economic services are crucial.
Financial inclusion calls for more than simply technology to reach the 200 million underbanked and unbanked small companies. It also calls for the 1.7 billion unbanked or underbanked consumers. Shiliashki explained to Karen Webster that “it takes an ecosystem.”
And that ecosystem can only come into existence if regulators change course and broaden the rule. This controls data gathering and usage. He clarified that other companies are also developing new goods and services. So that they can fulfill consumer demand, not simply FinTechs.
“Banks are attempting to work with FinTechs to deliver better services,” he said, not merely play catch-up. According to him, these coordinated efforts make it simpler for businesses and individuals to approve new accounts. Then, the transaction accounts serve as a launchpad for fresh experiences and offerings.
Standards must catch up in order to boost the use of these services. The potential of FinTech to grow, according to him, would then allow for widespread acceptance of new products. There are already many instances of how cooperation between these financial services may advance financial inclusion.
Brazil has experienced development for PayU, a platform that unifies payment features and cross-border commerce. And in that market, 70% of Brazilians are currently using Pix. It is the immediate payment system that the Central Bank of Brazil established in 2020. It has since processed billions of transactions.
Adoption is “phenomenal” since the government, and FinTechs have “pushed” it. Online shopping has made it possible for those without regular access to bank accounts. And those who might normally have cash in their pockets but no cards to use.