CCR2 Technology
While lenders have a key role to play in driving this change and digitisation offers a new level of access, responsibility should not fall to one group. Innovation and collaboration across government, industry, regulators, and others is required to achieve inclusion on a larger scale
the industry is not further excluding these communities from the financial system.
Harnessing the power of community through the smartphone In the cash economies that are very common in the developing world, traditional banking services, which are inaccessible for many, are replaced by trust-based community-run systems. Similarly, migrant communities in mature
markets, like the UK, can offer a valuable source of validated referrals. In our experience, referred customers are
20% less likely to default than those outside of a social network. Innovative players should tap into the
growing ubiquity of smartphone usage within these communities. Digital and mobile approaches can enable
financial-services providers to, much more effectively, reach new customers in these communities, and also to capture insightful data that informs how best to engage with certain groups, based on their cultural
May 2018
behaviours, norms, and attitudes around credit. The digitalisation of lending – that is
to say, the movement from the manual disbursement of funds and collection of repayments to mobile and digital channels – also enables a drastic reduction of the cost of accessing credit, creating a more inclusive system for those on the fringes.
Speaking your customer’s language Serving a diverse customer base has to be met with empathetic customer service and support, in particular when catering to individuals with limited financial literacy or language proficiency. To advance financial inclusion, lenders
need to ensure that every element of their physical and digital environments is set up to eliminate cultural, language, or literacy barriers, in order to promote access and inclusion. Mobile technology provides lenders with a
powerful tool to achieve this. For example, mobile and digital modes of engagement can
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bridge the language barriers of working with migrants by translating content into their mother tongue. Such language barriers can be removed
altogether by replacing words with visual or video content. For example, our use of images, rather
than words, in the psychometric assessment, which is part of our underwriting process, has allowed us to communicate in a language that is universal.
Conclusion Today, we are better equipped than ever to expand financial access, but we must ensure that certain communities within the ranks of the unbanked are not inadvertently overlooked. While lenders have a key role to play in
driving this change and digitisation offers a new level of access, responsibility should not fall to one group. Innovation and collaboration across government, industry, regulators, and others is required to achieve inclusion on a larger scale. CCR2
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