The impact investment opportunity in fintech covers a broad range from closing the small business credit gap to the inclusion of unbanked adults. For the financial system this represents over 150+Bn untapped market with clear benefits for the individuals, the society overall, and the Financial Industry businesses themselves. Fintech enables these benefits through two major transformative technologies: blockchain/distributed ledger and digital identity.
Key Impact Investing Topics
Digital Identity and Financial Inclusion
Many unbanked individuals do not have access to traditional financial services because they lack verifiable ID or any identification at all. By using DLTs, individuals can receive a digital identity verified with biometrics which is securely stored and managed for transacting value nationally and internationally. Essentially, the identity manifests as a cryptographic key that the user can provide, using a specified biometric marker to verify and authenticate themselves when needed.
Blockchain and Biometrics
Insurtech, Payments, Regtech, Wealth-Management, Depositing & Lending, Market provisioning, Capital raising…..There are many verticals that can be largely disrupted by Blockchain. These include for example: operational simplification, regulatory efficiency improvement, counterparty risk reduction, clearing and settlement time reduction, liquidity and capital improvement, fraud minimization. The technology offers broad impact use cases and financial opportunities to Banks/FI to foster financial inclusion through services for migrants, remittance services, citizens in poverty, etc …