Financial Technology Empowers Customers To Make Informed Choices

KUALA LUMPUR, Sept 4 (Bernama) -- The financial technology (fintech) applications have empowered customers to make informed choices while improving access to funding and investment. World Bank Group (Kenya), Markets Specialist, Evans Osano, said the technology has enabled banks and lending institutions to provide finance to markets previously underserved or missed out by traditional lenders. "We have seen seven times growth in deposits with technology-driven financial institutions," he said. Osano said this at the World Capital Markets Symposium 2015's session on 'Democratising Finance: Innovation for Inclusion' session here Friday. The two-day event, which ended Friday, is organised by the Securities Commission Malaysia. He said Kenya, which started off with three million accounts, has now over 20 million due to the growing use of digital banking systems. Osano said technology has made it easier for new account holders to work in less rigid environments. "Traditional banks are also partnering technology firms to ride on the ease of access and reach out to more customers, much more than their existing distribution base allows," he said. Mouna Aouri Langendorf, Founder and Chief Momentum Officer of Woomentum, said technology has also enabled easier funding to small to medium businesses. "Fintech platforms have made it easier for entrepreneurs to raise funds, with its ability to scale and reach out to more communities. "Entrepreneurs raise 80 per cent of their funds from their own network and technology helps them do that," she said. Meanwhile, Trillion Fund Deputy Chief Executive/Chief Operating Officer, Theresa Burton, said giving the power to customers to make choices would allow them to be more self-directed investors. She said previously, the people were excluded due to high entry costs, but now the fintech platforms allowed more customers to invest with only £50 (£1 = US$1.52). "The customers have the choice now to use a combination of investment tools from robo-advisers to peer-to-peer lending facilities," she said. The WCMS 2015, a platform to promote informed debate, is led by global opinion leaders, policymakers, influencers, domain experts, business and market leaders on market issues of the day. -- BERNAMA