The successful penetration of technology in the banking sector has been such a positive thing that is gradually helping banks revolutionize their service provision to bankers. Even the traditional banking and financial institutions such as MoneyGram and other cash-handling facilities are gradually upgrading their operations to give customers a technology-mediated service. The result of this practice has been attracting customers to their businesses and successfully attempting to bank the unbankable in various ways.
Provision of lending services
Most customers today either request a loan or deposit/withdraw cash from their banks. It is, however, quite impossible for a bank to understand the financial profile of an unbanked individual. Technology in the sector has made it possible for banks to obtain unbanked persons’ financial data by utilizing the integrative capability of technology to analyze their activities on smartphones. This allows banks to build a profile of an unbanked individual, thereby allowing them to obtain lending services.
Facilitation of E-Commerce
Banks may find it tough to attract the interest of unbanked individuals to obtain credit cards which are particularly essential in facilitating e-commerce and online shopping services. Technology is gradually changing all that as individuals are willing to venture into fintech providers from where they can obtain credit cards from cryptocurrency platforms. Such credit cards that allow the inter-compatibility of funds between local currencies and cryptocurrencies can gradually attract the unbanked people into banks from where they can deposit local currencies to transform them into cryptocurrencies and continue shopping.
Facilitating Domestic Mobile Transfers
With technology, mobile phones can now be utilized to send money through cash transfer agencies. Unbanked persons who are unwilling to visit banks to obtain money sent to them have the option of visiting a local cash transfer agency and receive or send money. With time, it is possible to attract the interest of such a person and convince them of opening a bank account to enjoy more benefits.
Enhancing Cross-Border Payments
Unbanked people working overseas can now seamlessly pay their bills across the border with the various fintech solution providers available in the market. Companies which allow workers to settle their bills through designated payment centers make it easy for the workers to avoid the otherwise much hassle of having to travel to their country to have the bills paid.