Fintech: Innovations and Technology

Innovations and Technology

Financial technology solutions have huge potential to change the way people think about, access, and use their money.

In a global financial landscape that is constantly changing and innovating, financial organizations must think outside the box culturally, technologically and operationally. FINCA Impact Finance is doing just that.

FINCA Impact Finance’s touch-tech service delivery model combines fintech innovation with a human-centered approach. We partner with fintech firms across the global to expand and improve our products and services and to implement solutions that streamline how we deliver these products and services in order to lower the cost to serve for our clients. Across the network we are deploying new technologies that improve our business, including digital field automation, credit scoring, central underwriting, agency banking and mobile and online banking.

There are 1.7 billion unbanked people in the world – and a tremendous need for financial inclusion remains, especially in our target markets. In places where we operate, like Sub-Saharan Africa and Latin America, 27% of unbanked people report they don’t have a bank account because they live too far away from the nearest bank. In South Asia, that number is 21%. Our fintech innovations – such as mobile and agency banking – are a lifeline for these customers.

As of the first quarter of 2020:

55% of FIF transactions to date are conducted via branchless channels. Branchless channels allow clients to access their finances and interact with FINCA when they want and how they want without leaving the comfort of their communities.

10 subsidiaries offer online banking

FINCA Impact Finance recognizes that providing access alone can’t achieve financial health. Empowering people means giving them the tools necessary to benefit from the products and services available. In Zambia, we are equipping banking agents to provide clients with information on financial literacy, consumer protection and the financial products that are best suited to their specific needs.

Agency Banking

A banking agent is a shop owner with their own retail business who uses our technology to process customers’ transactions on behalf of FINCA Impact Finance. All agents are equipped with a branchless banking device that lets customers access their FINCA accounts easily and securely. With over 2,000 proprietary agents in Africa and 45,000 third-party agents in our MESA region, agency banking allows us to expand our outreach and provide our customers with a convenient way to access their accounts. Through this model, we are also promoting stronger communities and economic opportunities – FINCA agents benefit from additional revenue collected from commissions, as well as increased foot-traffic to their stores. Our largest agency network operates in the Democratic Republic of the Congo.

Credit Scoring

Through data analytics, FINCA Impact Finance is now performing credit scoring for repeat loans and quickly testing scores for new customers. Credit scoring allows for objective decisioning and enables FINCA Impact Finance subsidiaries to reduce the turnaround time for loan approval decisions – delivering our clients the funds they need in significantly less time. In some subsidiaries we have dropped the decision time from 20 days to 2 hours.

Mobile Apps and E-Wallets

Nine subsidiaries now offer mobile banking and e-wallet solutions. In 2017, FINCA Pakistan launched SimSim, a free-to-use e-wallet with more than 300,000 users. In 2018, FINCA DRC launched CLICK, a mobile banking solution for smartphone and USSD users.

Biometrics

FIF’s agency banking networks are powered by biometric fingerprint scans. Fingerprint scans allow clients to access their accounts without worrying about identity theft. This is a critical service for illiterate and innumerate customers.

Mobile Banking

Mobile banking includes any financial service that customers may access on their mobile phone. Various forms of mobile banking include mobile wallet, push/pull integration of FINCA’s banking system and client accounts with MNO’s (mobile network operator) wallet systems, and mobile internet banking. FINCA Impact Finance subsidiaries are deploying mobile banking and partnering with local MNOs to bring banking directly into the hands of our customers.

ATMs

In some of our markets, FINCA Impact Finance has set up automated terminals (ATM) with both cash-in and cash-out functionalities that allow customers to transact using a card and pin code.

Debit Cards

Debit cards have been introduced in Azerbaijan, Georgia and Uganda.

Online Banking

In some of our markets, we are introducing online banking to provide another channel by which to access their accounts, conduct financial transactions and communicate with their FINCA representatives.

Digital Field Automation

Digital Field Automation refers to the use of technology to capture client information and data from the field in real time. Powered by tablets, customer relationship officers are able to more easily collect customer loan information and digitally receive and transmit loan application data to the central office for processing and underwriting. This technology allows FINCA Impact Finance to reach more customers, while spending more time on financial and product education and presenting complementary service offerings and less time processing paperwork.