Empower underserved communities with data analytics, machine learning, and AI

The world economy is a complex network of trade and alliances, and financial services drive growth and development. However, despite the importance of obtaining economic benefits, millions of people around the world remain unable to participate in the traditional financial system.

Financial inclusion, or ensuring the availability and accessibility of financial services to underserved communities, has emerged as a critical issue for today's banking industry. According to the World Bank, a whopping 1.7 billion adults around the world lack access to formal financial services. A 2020 UAE Central Bank survey revealed that 85% of adults (15 years and above) in the country use at least one form of financial services, and 15% are financially excluded. Ta.

Lack of financial inclusion can have a variety of negative consequences, including difficulty saving for emergencies, inability to invest in education or business, and increased vulnerability to financial crises.

read more: Technology trends driving the financial services sector

Access to financial wellness

Imagine a world where everyone, regardless of background or income, has access to critical financial services and can build a brighter future for themselves and their communities. This is the vision behind financial inclusion and the concern in the modern banking sector. Banks provide access to financial services to underserved communities, allowing individuals to save for the future, invest in education and business, and develop economic resilience. will do so. This improves the quality of life for underserved communities and promotes economic growth and development.

But it's not just about providing access to financial services. Banks are also stepping up efforts to help underserved communities become more financially literate and responsible. We deliver financial education and training programs through mobile apps and design financial products and services that are easy to understand and use. For example, Liv., a spin-off of Emirates NBD, a digital bank for young people, offers a number of blogs and in-app resources to help users improve their financial knowledge.

financial literacy

Banks increase financial inclusion and build stronger, more resilient communities by empowering underserved communities to better understand their financial options and make informed money management decisions. We're building a community.

The banking industry aims to provide financial services to all parts of the world, including underserved communities, and is actively deploying cutting-edge technology to achieve that goal. Data, data analytics, machine learning, and artificial intelligence are the new superheroes in the pursuit of financial inclusion. Banks are now leveraging non-traditional data sources such as utility bill payment history to better assess an individual's creditworthiness without a traditional FICO or credit score.

This means that more people who were once considered untrustworthy will now have access to financial products and services that meet their needs. Additionally, these technologies enable banks to effectively manage risk while simultaneously addressing the financial needs of underserved communities.

The power of technology and the cloud

The banking industry is turning to cloud data management platforms to solve problems that revolve around financial exclusion in underserved communities. Cloud-based platforms make it easier for banks to access the data they need to better understand the financial needs and behaviors of these communities. Accessing this knowledge allows banks to design products and services tailored to customers' specific needs.

But that's not the end. In certain regions, mobile banking apps are revolutionizing financial inclusion. As smartphones become more ubiquitous, these apps provide a convenient way for underserved individuals to access financial services even in the absence of traditional banks.

Finally, as an added bonus, by leveraging data analytics, machine learning, and AI, banks can now more effectively target these communities and create products and benefits that address their specific needs. Ta. This reduces customer acquisition costs and increases the profitability of financial inclusion efforts. These technologies not only promote financial inclusion, but also drive revenue and profitability for banks by expanding their customer base. It’s a win-win for everyone involved!

technologyKarim Azar, Vice President, Middle East Region cloud dera.

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