The modern economy has been developed on the foundation of digital financing services and has proved to be the only way to progress for the developing countries across Africa and Asia. The sooner these countries embrace digital finance the better it is for speeding up economical development that can alleviate poverty and drive it towards prosperity.
The present scenario
It has been observed that the majority of population in poor and developing countries are denied of the basic access to financial services that can be utilised to uplift their conditions of living and provide opportunities for rising above the poverty levels that could lead to better living.
Banking is the most popular vehicle for making financial services available to all but unfortunately most of the people in rural areas of Africa, perhaps the majority of population, are yet not serviced by banks. Banks also do not have the proper infrastructure to reach out to every citizen in any corner of these countries. As a result, the majority of the population is denied participation in the mainstream of economical development.
Ensuring financial inclusion
No economy can prosper unless it can ensure inclusive growth by ensuring that the majority of the population has easy access to financial services. Gaps that are created in the economy due to the limitations of the financial infrastructure of the poor and developing countries can be adequately plugged adapting by digital finance.
Money that was once accessible only by visiting banks is now delivered at people’s doorsteps by using the technological advantage of digital finance. This has ensured that more and more people can be brought under the ambit of the economical activities of the country that is so necessary to eradicate poverty and ensure development.
Safety in transactions, less corruption
Cash based economy has the major disadvantage of not being able to keep track of money. Funds that are allocated for development are often misused and it also opens the doors for corruption. As a result, there is under utilisation of the value of money which drives the poor countries more and more into the depths of under development.
On the contrary, digital finance brings complete transparency to the financial systems that enable to keep track of all financial transactions to ensure that the money reaches the desired recipients and is properly spent. Digital finance ensures healthy financial behaviour that can put the poor countries into the path of development.
Digital finance empowers all people to actively participate in the main economy and contribute to its development. It promises of huge growth potential for the developing countries. With the facility of making money available through mobile phones, huge development is expected in the developing and emerging countries. It is estimated that, just within a decade, $3.7 trillion will be added to the collective economies of these countries that would benefit billions of people.