With the rise of social media, opening our eyes to different perspectives, financial inclusion has become a hot topic in recent years, with great efforts being made to ensure that people in all parts of the world have access to the financial services they need.
And one of the key ways that financial inclusion is being promoted is through the fabric of the digital world by means of digital value transfers.
Digital transfers, such as mobile payments and online banking, have become increasingly popular and useful as people seek out more convenient and accessible ways to take control of their finances and manage their money. For those who live in areas with little to no traditional banks or who are otherwise underserved by the financial industry, digital transfers can be a big game changer.
Let's put some context on value transfer. In the digital sphere, transferring value in all its aspects is quite easy. You're not limited to a finite radius. In the physical sphere, this requires physically moving it all the way from point A to point B.
In the digital sphere, that's not the case. You can 'jump' from point A to point B without transversing the distance between them. In a way, you could say the nature of value has changed or become digitized giving it the ability to become decentralized and widely distributed. Cryptocurrency is at the heart of it all.
We Don't Need A Bank
In many parts of the world, people who are unbanked or underbanked have limited access to the financial services that those in more developed countries take for granted. Without access to traditional banking, they may struggle to save money, make payments, invest for their future or access credit (loan). This can make it very difficult for them to improve their financial situation, start a business, or otherwise pursue their financial goals.
However, with the rise of digital technology, these individuals now have access to revolutionary new tools and resources that can help them super charge their financial journey and manage their money much more effectively.
Thanks to the incredible invention of mobile phones and their evolution to smartphones. This device has allow people to send and receive money (sometimes instantly) from anywhere in the world without the need for a bank account. Even John D. Rockefeller, one of the richest men back then, couldn't have access to these type of opportunities.
Should Basic Things Be 'Free' In The Digital Sphere?
I think many people have made up their minds with this and only few are still undecided. I personally think that realistically they should be. It sounds a bit immoral to charge for basic things in an age of abundance. Besides, there are people who for the sake of humanity have vouch to make everything free with the aid of technology.
However, before that time. We can all agree that they should be cheaper and more affordable than their physical counterparts.
In addition to providing greater access to financial services, digital transfers can also help reduce the high costs and the never ending limitations associated with traditional banking. There's no need for brick and mortar branches or other infrastructure. This not only make financial services accessible to everyone but also very affordable for each and every individual which is especially useful when someone is just starting out lest they get buried with fees and stay under the rubble never seeing the light of day.
Conclusion
Overall, the social impact of digital value transfers on financial inclusion will be significant. Not only can wealth be created from anywhere but it can also be spread far and wide which significantly helps in promoting greater economic stability and prosperity for people in all parts of the world.
And if you want to see what that will look like, Hive is one of the best places to look at.
All images created via Nightcafe Studio.
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Profile: Young Kedar
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