FINANCING FOR DEVELOPMENT

Inclusive Financial Technology

According to the OECD:“ Information and Communication

Technologies (ICTs) use in developing economies can stimulate

economic growth and poverty reduction”

CONTENTSI. What is inclusive financial technology?II. What is trying to solve?III. Reasons to participate

i. Governmentsii. Official aid providersiii. Private sector

IV. Main obstacles V. How the obstacles will be overcome?VI. Conclusion

What is inclusive financial technology?

“ It’s a innovate use of the new

technologies systems to made the finance for development a

inclusive solution”

What is trying to solve?

• The lack of traditional financial services to the Bottom of the Pyramid

• The necessity of tailor

products and services

according to the unique

costumers requirements

• The need to reduce the high cost of financial services; specially in rural and remote areas.

•The need of financial mobility

Reasons to participate

Governments• Need to promote resources mobilization for

inclusive finance.• Need to take risk and provide economic

stability in long-term to encourage private sector participation. • Need to meet the sustainable development

goals by 2030.

• Contribute with the new development agenda.• Scale up financial support, technical

assistance and policy advice.• Promote innovative models to finance

development.

Official aid providers

Private Sector

• There is a big market opportunity; according to the world bank:– Two billion people worldwide don’t have

financial services.– More than two hundred million of Micro

and Medium enterprises don’t have access to affordable financial services and credit.

Main obstacles• Disinterest of traditional

financial institutions to provide product and services to this segment of the population.

• Restriction in physical and technological infrastructure, specially in remote rural areas.

Main obstacles

• The lack of literacy in the clients, specially financial literacy.• Resistance to the change; the use

of electronic money instead of paper.

How the obstacles will be overcome ?

• Implementing public private partnerships that promote the investment in infrastructure and technology.

• Connecting and investing in universities, private companies and research centers to promote R&D in new finance technology models, products and services.

• Developing mechanism that support the creation of start-up that focus in the design and improvement of financial technologies.

• Implementing inclusive innovation policies that capitalize the resources of the poor.

• Developing courses and training to teach financial literacy programs (videos, financial tools and skills) for the poorest.

Conclusion

“Financial Technologies are an important tool for inclusive development:

entrepreneurship and economic opportunities can convert ideas, simple intuition, common

sense and international challenges in a source of innovation and change, improving the

efficiency in the use of resources in the worldwide: “

THANK YOU For your attention