Fintech has the potential to promote greater financial inclusion through convenience, lower costs, and accessibility. An integrated fintech ecosystem is key, with cooperation between startups, traditional financial institutions, investors, and regulators. When properly developed, fintech can help bridge the gap to banking services for the unbanked, facilitate lending to SMEs, and revitalize economic growth across APEC nations in the digital age.

1. Fintech as a Strategy of Financial
Inclusion in the Age of Digitalization
Group 5
Buddhadev Sinha Id: 121283
Md. Rafiqual Hasan Id: 121284
Shahrear Nasrin Id: 121285
1

2. Publication Background
•Author: Hyoeun Yang, Senior Researcher, Institute for Global
Economics & University of London
•Publisher: Korean APEC Society
•Publication Information: Journal of APEC Studies
Vol.11 No.2 , 93~106 pages
•Issue date: 30.12.2019 2

3. Methodology
•Kind of study: Explanatory
•Data source: Secondary
•Population: APEC Members Countries
•Method: Case-study
3

4. Summary
Global Financial Crisis (GFC) in 2008 & failure of
market driven economic system.
Policy makers’ focus on
Financial empowerment on less privileged people
Enhancing competition of financial market
Creative Destruction of financial system through
fintech
Inevitable policy demand for fintech
4

5. Summary (Cont.)
Relevance to APEC countries
Fast-growing fintech market
such as China, India, and Russia
Impact of fintech on SMEs
SMEs account over 97% of enterprises and
employ over half of the workforce in the
region.
5

6. Few interesting factors
•Cultural aspect of human and machine
•Combination of two new concept Fintech and
Financial Inclusion
•The concept of Fintech Ecosystem
6

7. Key-words
APEC
Financial inclusion
Fintech
Fintech ecosystem
Millennials
7

8. APEC:
The Asia-Pacific
Economic
Cooperation (APEC) is
an inter-governmental
forum for 21 member
economies in the
Pacific Rim that
promotes free trade
throughout the Asia-
Pacific region.
8

9. Fintech:
Financial technology
(Fintech) is used to
describe new tech that
seeks to improve and
automate the delivery
and use of financial
services.
9

10. Financial inclusion:
Financial inclusion
means that individuals
and businesses have
access to useful and
affordable financial
products and services
that meet their needs –
transactions, payments,
savings, credit and
insurance – delivered in
a responsible and
sustainable way (The
World Bank).
10

11. Fintech ecosystem:
The FinTech Ecosystem
refers to the ecosystem
formed by the
government, financial
services companies,
and FinTech startup
companies where the
efforts of one help
further another’s.
11

12. Millennials:
Anyone born between
1981 and 1996 (ages
23 to 38 in 2019) is
considered a
Millennial.
12

13. Core
Message
Fintech is the key to Financial
Inclusion
13

14. How fintech has changed the paradigm of financial services?
Convenience and cost-efficiency
 One-fifth of the world’s population is unbanked.
 Minimum profitable threshold for most financial institutions.
 Distance as a barrier
 Cost of traditional banking
 Fintech has Potential to lower the cost.
 Bridging the gap.
14

15. Emergence of Millennials who are digital native
15

16. Global Fintech Adoption and Mobile Infrastructure
Consumer Fintech Adoption Across 27 Markets (Unit: %)
16

17. Smartphone
Adoption by
Region
17

18. Primary ground of demand and acceptance of fintech
 Global financial crisis, 2008.
 Dissatisfaction and distrust of financial customers to
traditional financial institutions.
 The contraction of bank lending due to the increased capital
reserve ratio and other regulatory requirements.
 millennials experienced the 2008 GFC directly.
18

19. Window for less privileged
population who are unbanked
Revitalizing SMEs
Easy access to finance
automated assessment platform
How fintech
facilitate
financial
inclusion?
19

20. The figures show the
percentage of SMEs
that have used at
least one fintech
service in the
respective category.
20

21. Fintech ecosystem: key to success!!
The term “Ecosystem” was adopted by a
business academic James Moore in his
article, under the title of ‘Predators and Prey:
A New Ecology of Competition,’
In this article, Moore emphasized the
similarity between natural organisms and
businesses
IT enterprises, who are both in competition
and cooperation at the same time to survive
and progress in the market.
Components: startups, megabanks,
regulators, investors, and customers.
21

22. Fundamental factors
that consist of the
fintech ecosystem:
• Talent
• Capital
• Demand
• Policy
22

23. The Amount of Venture
Capital Investments for
Fintech by Country (2018)
(Unit: million dollars)
23

24. Conclusion:
As described in the article, fintech
Introduced a new paradigm of financial service
Is a tool to achieve financial inclusion
Key to sustainable economic growth.
success of fintech as a facilitator of financial inclusion can be
only realized when the factors consisting of the fintech
ecosystem are well integrated and connected.
24

25. • If the message of the article is agreeable or not?
…...Yes!
25

26. Reasons behind the message
• Preference for the innovative fintech after 2008 GFC
• Adoption for convenience and cost-efficiency
• Progressive growth of mobile phone users
• Increasing uses of smartphone
• Services for SMEs
• Services for the unbanked people
• Inclusive growth
• Reduction of poverty
26

27. Limitations of the article:
Lack of cyber security
Digital illiteracy
Privacy issues
27

28. Thank you
28