2.5bn adults excluded from formal financial system globally

The global financial landscape is undergoing a transformation driven by technological advancements, particularly in the realm of FinTech. The G20 estimates that a staggering 2.5 billion adults worldwide are excluded from the formal financial system, highlighting a pressing need for innovation to bridge this gap. Loic Potjes, a YPO member and the Managing Director of Disruptive Leap, delved into the significance of technology in driving social impact within emerging markets during a recent interview with CNBC Africa. Potjes emphasized the vast potential presented by what is often referred to as the 'fourth industrial revolution'. He underscored the emergence of tech players in various African business hubs, illustrating how these advancements have the power to drive financial inclusion and reshape the economic landscape. Potjes highlighted the advent of tech platforms that enable real-time connectivity, facilitating decision-making and empowering individuals previously marginalized from the formal economy. One compelling example cited by Potjes pertained to the utilization of technology to influence behavioral patterns in the healthcare sector. He referenced a South African tech platform that effectively engaged millions of women and teenage girls globally, positively impacting their medication adherence. By leveraging artificial intelligence and machine learning, this platform not only enhances disease detection but also offers personalized communication, ultimately fostering better health outcomes. Despite the promising prospects of technological innovation in fostering social impact, Potjes acknowledged the challenges of standardization and measurement in an evolving digital landscape. With the rise of impact investing, there is a growing emphasis on quantifying the social outcomes of investments and leveraging machine learning and AI to track and analyze impact metrics. This data-driven approach aims to enhance accountability and efficacy in social impact initiatives. Furthermore, Potjes addressed the issue of gender inclusion in tech adoption, citing the low internet penetration among women in India as a poignant example. By analyzing such disparities and implementing targeted solutions like Wi-Fi hotspots and legislative support for digital access, emerging economies can strive towards greater inclusivity and economic empowerment. Potjes highlighted innovative technologies that empower small businesses, such as platforms enabling web presence through simple questionnaires, thereby driving sales and economic growth at the grassroots level. In conclusion, Potjes emphasized the need for a pragmatic approach to leveraging technology for social good, underscoring the importance of ground-level projects and best practices. By harnessing the transformative potential of tech innovations and ensuring equitable access to digital resources, emerging markets can surmount barriers to financial inclusion and pave the way for sustainable economic growth.