The document discusses how fintech can help build financial resilience during times of high inflation and cost of living. It notes that inflation will always occur and causes financial stress for both consumers and businesses. Fintech can help in areas like payments, lending, personal finance tools, digital banking, cryptocurrency and more. Financial education is important to enhance financial well-being. Fintech companies need to maintain close engagement with customers to build trust as financial inclusion and security are pursued. A financial resilience index can gauge economic stability and fintech products can assist people at different stages before, during and after financial disruption.

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© 2023 CEQUENS
Building Financial Resilience In
Times Of High Cost-of-Living
The Social Impact of Fintech
Empowering Financial Well-Being
Ashraf Osman
VP, Commercial Strategy Execution

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The world is undergoing a massive wave of inflation, due to two major disruptive
events (COVID and Ukraine war).
Problem Statement
—
Financial Stress
High Cost of Living
Inflation
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Problem Statement
—
3
Inflation is a cyclical fact of life; it will ALWAYS happen.

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Inflation
High Cost of Living
Consumers Spend Less
Business Demand Decreases
Layoffs
Reduced Disposable Income
Financial Stress (People & Businesses)
Economic Downward Spiral
—
increase in consumers compared
to last year
of consumers are pessimistic
about the economic outlook for
the coming year
According to McKinsey: %
65 0%
10
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67%
Mental
Health
70%
Emotional
Stress
Engagement &
Productivity at
Work
44%
Physical Health
47%
52
%
Lose Sleep
at Night
Financial
Stress
Financial Stress Causes:
—
*Source: Financial Wellbeing Study, February 2023 5

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Where Do We Go To In Time Of Crisis?
—
Bank
News Flash: 1.7 billion citizens of the world are still unbanked!
Advisor/Mentor/Planner
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Traditional Banking Capability Map
—
Fintech can take
on a more
Advisory
Mentoring
Planning Role
Opportunity
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Digital Payments & Transfers
Online Lending & Crowdfunding
Personal Finance & Wealth Management
Digital Banking & Neobanks
Blockchain & Cryptocurrencies
Regtech & Compliance
Insurtech
Data Analytics & Artificial Intelligence
Open Banking & APIs
Financial Inclusion & Emerging Markets
Fintech Capability Map
—

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Value Proposition
—
What Fintech industries provide that banks do not!
Technological Innovation
(traditional banks spend 70% of their budget on “maintaining existing systems)
Accessibility & Inclusion (95% of adult world population have phones)
Personalization & Customization
Speed & efficiency
Lower cost & transparency
Seamless integration & partnership
Better information exchange

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Payments
Lending and Credit
Personal Finance
Digital Banking
Investment and Wealth Management
Cryptocurrency and Blockchain
Insurtech
Regtech, Crowdfunding, Financial Education
Open Banking and Trade Finance
Category Market Share
30 - 40%
15 - 20%
10 - 15%
10%
5 - 10%
5%
5 - 10%
5 - 10%
5%
Largest and most mature fintech category. Includes mobile payments, P2P
transfers, merchant services, etc.
Covers personal loans, student loan refinancing, credit monitoring, etc.
Encompasses budgeting apps, robo-advisors, and financial planning tools.
Includes trading apps and automated investing platforms.
Currently small but growing rapidly, including cryptocurrency exchanges and
wallet apps.
Offers new insurance models through apps.
Each category holds a small market share, including regulatory compliance
solutions, crowdfunding platforms, and financial education apps.
Emerging categories with a minimal share of the market, including APIs for
data sharing and digital trade finance solutions.
Consists of fintech challenger banks and neobanks.
Description
Fintech Product Portfolio
—
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How can Fintech can play a crucial role in empowering individuals and businesses to overcome
financial challenges to reach financial well-being?
Financial Well-Being Framework
—
Financial Products
& Solutions
Customer
Experience
Information
& Planning
Tools, support
& advice
Financial Well-Being Framework Consumer Financial Well-Being
Knowledge & Skills Confidence Behaviours
Financial Resilience & Capability
Financial Resilience Index
Financial Health
The ability to balance your
financial needs of today
with those of tomorrow, as
a result of decisions and
behaviors that move you
forward.
Source: Symour consulting 2016
Financial Resilience
The ability to get through
financial hardship,
stressors, and shock as a
result of unplanned life
events.
Financial Stress
The emotional peace of
mind in terms of your
financial situation and
current and future financial
obligations.
Borrowing & Debt Management
Daily Financial Management
Save, Plan & Invest
Protect Against & Unexpected
Consumer & Financial Behaviour
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Let’s Reshuffle The Cards
—
How can Fintech can play a crucial role in empowering
individuals and businesses to overcome financial
challenges to reach financial well-being?
Time Periods
Resilience
Management/Steps
Before
Disruption
During
Disruption
After
Disruption
Defining the System
Assessing Resilience
Enhancing Resilience
Maintaining
Restoring
Transforming
Prepare
Prevent
Protect
Mitigate
Absorb
Adapt
Respond
Recover
Learn
Resilience
Stages/Phases
Category
Personal Finance
Lending and Credit
Financial Education
Investment and Wealth Management
Digital Banking
Payments
Insurtech
Cryptocurrency and Blockchain
Open Banking
Crowdfunding
Regtech
Trade Finance
Real Estate Fintech
Market Share
10 - 15%
15 - 20%
5 - 10%
5 - 10%
10%
30 - 40%
5 - 10%
5%
5%
5 - 10%
5 - 10%
5%
N/A
Description
Budgeting and planning tools help manage high costs.
Access to affordable credit is crucial.
Building financial skills is key during hardship.
Growing and protecting savings provides stability.
Online banking enables better money management.
Transaction capabilities are still important.
Managing risks provides security.
Alternative investments may help some.
Data sharing enables better planning.
Alternative funding source if needed.
Compliance is less of a priority.
Commerce enablement less crucial for consumers.
Housing solutions not an immediate priority.
A look at resilience stages and how products can help
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The world is and will be facing financial challenges, particularly as a large portion of
the "unbanked" population resides in remote areas with diverse cultural
backgrounds.
Financial education plays a crucial role in enhancing financial well-being, and it is
vital to recognize that fintech goes beyond just payment and lending solutions.
To succeed, fintech companies need to maintain close engagement with their
customers, building trust and fostering lasting partnerships in the pursuit of financial
inclusion and security.
The importance of a financial resilience index cannot be overstated, as it serves as a
valuable tool to gauge economic stability.
Conclusion
—

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Recommendations!
—
Customers first:
Be with them before,
during, and after the
financial hit
Maintain close
engagement with
your prospects and
customers by
building deeper
connections
Build trust and foster
lasting relationships
with your customers

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