The REGTECH Book

How Technology Is Driving Financial Inclusion

By Nick Wakefield

Managing Director Europe, Bambu and Co-Founder, Regulation Asia

In global terms, rising incomes and extant banking infrastructure, including established technologies, mean that the ability and opportunity for people to access financial services have never been greater than they are today.

However, this overarching narrative of increased access to bank accounts, payments, investment, and investment advice does not play out everywhere. Moreover, the difference between those countries with developed banking infrastructure, both physical and electronic, and those without is arguably cast in no sharper relief than it is in developing Asia.

Technology has the capacity to boost developing communities, help businesses thrive, and bring financial freedom to those who need it most.

The latest available data from the World Bank shows only 31% of people aged 15 or older in Vietnam have an account with a financial institution, only 18% have formal borrowing, and just 15% have formal savings. It is a similar story elsewhere, with bank account penetration also 31% in the Philippines and Bangladesh, inching up to 36% in Indonesia, then tumbling again to 23% in Myanmar, and 22% in Cambodia. Comparing these figures to those for Japan (97%), Hong Kong (96%), and South Korea (94%) – and the global average of 62% – shows just how far some Asian countries still have to climb to include their citizens in, and position them to benefit ...