Yet in emerging markets that have historically been viewed as less developed, fintech startups have sparked a rapid reshaping of people’s relationship with money. These companies are eager to prove the value of their innovations, and eager for new, sometimes less regulated markets full of potential customers. With larger unbanked and underserved populations, startups and established fintech companies in Latin America and Africa have had to adapt in ways that we can learn from in North America and Europe to better serve our communities.
Well, quite. When there aren’t the established incumbents – with the associated regulations – to block the way then innovation is easier.
Ain’t that a surprise?
“in emerging markets that have historically been viewed as less developed” (!)
It’s double-speak for something but I can’t even work out what. Are we not allowed to call poor countries poor anymore?
Sounds like they mean, ‘Good we can bribe them without all the fuss they make at home.’
Whenever I receive a message that begins “in order to better serve our customers”, I immediately know two things: (a) no customers whatever will have been consulted about this change; and (b) in some small, undefined way, my life is about to become a little worse.
Agreed Chris. Banks are especially good at identifying customer convenience and fixing it.
They seem to delight in only opening when everybody is at work. Even the big branches have started closing before I get there. I hope the people working there realize what’s going to happen next.
As I like to keep reminding people all the self-serve stuff is because it’s easier for the company and they don’t have to pay for your time. You may also benefit from it, but that’s a secondary consideration or a nice bonus
Also these countries don’t have much of a state pension. If you don’t invest your money you will have a miserable and likely short retirement.
M-PESA only took off in Kenya because the banks didn’t think it would and become a competitor and ignored it. When they realised it was a threat and tried to shut it down the regulator got so much push back from the general public they had to let it continue.
The answer to the problem described is regulatory sandboxes.
https://www.fca.org.uk/firms/innovation/regulatory-sandbox
And not just in finance. It’s the answer to the question that lefties and Remainers love to ask and think it’s a gotcha:
So which regulations will you scrap then?
I don’t know, there’s so many, just give businesses a regulatory sandbox and let them discover which regulations are hampering innovation.
@Chris Miller – November 3, 2022 at 5:32 pm
Whenever I receive a message that begins “in order to better serve our customers”…
Exactly the way my heart falls when I see an item on the supermarket shelf marked “New and Improved”…