“The US and Europe can learn from fintech startups in developing countries that serve the underserved people more efficiently.”
The advent of fintech apps like Venmo in the US has accelerated the instant peer-to-peer transfer of money with a small fee but taking one to three business days to transact. Although this innovation has facilitated quick transfers, the underlying system used is the Automated Clearing House developed in the 1970s which is notoriously slow. This overhauling of this system to the 21st century is an uphill battle. In the emerging markets’ fintech startups are better reshaping people’s relationship with money. With the largely unregulated market in Latin America and Africa, fintech companies are making strides to serve unbanked and underserved populations. Given that everything needs to be built from scratch, there is a high need for simple tools that the fintech startups seek to fill with the aid of their corresponding governments.
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