“The role of fintech in improving financial inclusion comes to the fore during big economic shocks such as the COVID-19 pandemic. The poor suffer disproportionately during such shocks. Their hardship is exacerbated by lack of access to financial services, and they often do not have online bank accounts.” Asian Development Blog
According to an article by the Asian Development Blog, fintech companies in Asia are hatching innovative methods to finance SMEs that are battling to survive amid COVID-19. However, there are inherent risks associated with any technology, such as cybersecurity, data governance and privacy protection. The challenge is for regulators to find the right balance between enabling fintech to help the poor while managing the risks.
To read the article, head here.