Inclusion isn't just a moral imperative; it's a huge economic opportunity. Alessandro Hatami from Pacemakers.io joins the hot seat to discuss how a large portion of the population remains outside the financial system despite advances in technology. Alessandro highlights how providers can gain new customers and fuel growth by removing outdated barriers and more actively serving the underbanked.
Key Takeaways.
- [:01] Denise Johansson puts Alessandro Hatami, fintech advisor, thought leader, founder of Pacemakers.io, and co-author of the book Inclusive Finance, in the hot seat.
- [2:27] Why Alessandro chose to delve into the field of financial exclusion.
- [3:27] The three dimensions of ending financial exclusion: social, economic growth, and revenue.
- [4:56] While moral imperatives drive most individuals, corporations are moved by other factors entirely.
- [6:19] Who are the financially excluded? Alessandro breaks down the two large aspects of who is being kept at a distance and why.
- [8:00] Legacy issues remain the largest barrier to financial exclusion; Alessandro explains why.
- [9:31] Unbanked and underbanked are two categories of people dealing with unique sets of exclusionary issues.
- [12:18] The examples of New Bank Brazil and HSBC in the UK.
- [14:41] What governments — and users — can do to foster financial inclusion.
- [16:59] Alessandro offers his perspective on the current government initiatives and how words don't often turn into action.
- [19:07] M-PESA in Kenya and Tanzania is a great example of how technology and some corporate open-mindedness can create a positive and innovative impact.
- [20:34] Alessandro speaks to new technologies and their potential for improving global financial inclusion.
- [22:26] Can regulation really help? Alessandro offers some thoughts and a few paths to explore.
- [23:55] Alessandro shares his parting thoughts.
- [24:38] Denise signs out until the next time she puts an industry leader in the hot seat.
People.
- Guest Alessandro Hatami, founder of Pacemakers.io, delivering effective, profitable, and sustainable transformation in finance.
- Host Denise Johansson, Co-CEO and Co-Founder of Enfuce, a female-founded fintech helping drive business growth, solve customer challenges, and extend financial inclusion.
Links.
Guest Quotes (edited).
- We are treating a very large number of the population of the world, close to a billion people, in a way that they should not be. They should have access to services and products that improve their lives. And we're denying them for reasons that are not really real. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- The moral imperative is what drives many of us, but ultimately, corporations, even though they're run by people, are financially motivated. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- Financial exclusion is a two-dimensional thing. There's the legacy issues dimension based on requirements and technological limitations that are no longer there, and there's an educational dimension: explaining to people that banks are not there to take advantage of you. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- Because of digital transformation, the cash economy is disappearing. Living based on cash exchanges is becoming increasingly impossible and increasingly expensive. So people are being squeezed out. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- The dialogue between the end user and the financial provider should be more interactive than it is right now. That would create an opportunity for people who are underbanked to benefit, and for providers to find new customer bases. It's a win-win situation. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- There could be elements that allow you to open a bank account without having to provide full authentication until you exceed certain limits. And that's something that regulators can be very proactive about. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- If you look at Europe and Scandinavia, financial exclusion is close to zero. And why is that? It's because the governments have said, OK, everybody gets an ID at the point of birth. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
- I want the large corporations and the providers of services to realize that they're truly leaving money on the table by not serving the segment. — Alessandro Hatami, Pacemakers.io, InTheHotSeat
Denise Quotes (edited).
- Let's try to understand what exclusion actually means, because financial exclusion affects people differently around the world. — Denise Johansson, InTheHotSeat
- Many existing banks say that ensuring more financial inclusion is easy when you start from scratch and reach your target group. Will there be more push from governments to get us there? — Denise Johansson, InTheHotSeat
- The UK financial authority is overseeing that those bringing financial products to the market should be clear and accessible. — Denise Johansson, InTheHotSeat
- I saw that there are approximately 1.7 billion unbanked today; out of these, approximately 1.1 billion have mobile phones. — Denise Johansson, InTheHotSeat
