This creates plenty of opportunities for
Posted: Thu Feb 13, 2025 3:43 am
The McKinsey study also underscored the crucial role of digital rails. System functions such as real-time payment settlement benefit from network effects and arguably have monopolistic tendencies — and while they need not be government-provided, they should be regulated as public utilities. For wide-reaching financial system improvements, we need digitally native policies and regulations that promote innovation, ensure competition and protect consumers.
As the broader financial system evolves, it needs more connective tissue between users and non-traditional retail financial providers on the front end, as well as public infrastructure, regulated balance sheets and capital markets at the back end. The connective tissue is often an API, connecting banking data or services to third-party companies.
private-sector, business-to-business (B2B) fintechs. Open API-based financial infrastructure is a burgeoning area of innovation, and in the last 12 months, we have made B2B fintech investments in Brazil, India and the U.S. These B2B services make payment rails more accessible, handle compliance and security, and dramatically reduce the startup costs and time-to-market for user-facing innovations.
3. Even a better, fairer financial system has limits when it comes to the big challenges of our time.
We believe that tech-led innovation and markets can make a big difference in achieving many development outcomes. For instance, at the macroeconomic level, private-sector finance is a powerful tool for channeling savings to the most productive uses. At the microeconomic level, it helps households and MSMEs better manage cash flows, capture opportunities and manage risks.
However, private markets cannot solve some of the biggest social issues of our time, such as income inequality, public health, financial security for the old and infirm, and meeting basic needs for the poorest. Addressing japan whatsapp number datathese challenges requires social protection mechanisms and broad consensus across society.
The pandemic laid bare gaps in every country’s social safety net. Even in the most generous, advanced economies, social insurance programs worked well for employees with stable jobs, while informal workers, the self-employed and part-time workers were often left out. Gig workers were hit particularly hard by the crisis. Last year, we surveyed hundreds of gig workers in Brazil, India, Indonesia, South Africa and the U.S. and found the vast majority could barely cover household expenses for a month. We called on platforms, financial service providers and policymakers to help gig workers become more resilient.
Though updates to business models are needed to help vulnerable workers and their communities navigate this sort of crisis, they aren’t enough. Ultimately, these workers need basic pensions, core health insurance, unemployment benefits and other social protections that need to be supported by general taxation.
As the broader financial system evolves, it needs more connective tissue between users and non-traditional retail financial providers on the front end, as well as public infrastructure, regulated balance sheets and capital markets at the back end. The connective tissue is often an API, connecting banking data or services to third-party companies.
private-sector, business-to-business (B2B) fintechs. Open API-based financial infrastructure is a burgeoning area of innovation, and in the last 12 months, we have made B2B fintech investments in Brazil, India and the U.S. These B2B services make payment rails more accessible, handle compliance and security, and dramatically reduce the startup costs and time-to-market for user-facing innovations.
3. Even a better, fairer financial system has limits when it comes to the big challenges of our time.
We believe that tech-led innovation and markets can make a big difference in achieving many development outcomes. For instance, at the macroeconomic level, private-sector finance is a powerful tool for channeling savings to the most productive uses. At the microeconomic level, it helps households and MSMEs better manage cash flows, capture opportunities and manage risks.
However, private markets cannot solve some of the biggest social issues of our time, such as income inequality, public health, financial security for the old and infirm, and meeting basic needs for the poorest. Addressing japan whatsapp number datathese challenges requires social protection mechanisms and broad consensus across society.
The pandemic laid bare gaps in every country’s social safety net. Even in the most generous, advanced economies, social insurance programs worked well for employees with stable jobs, while informal workers, the self-employed and part-time workers were often left out. Gig workers were hit particularly hard by the crisis. Last year, we surveyed hundreds of gig workers in Brazil, India, Indonesia, South Africa and the U.S. and found the vast majority could barely cover household expenses for a month. We called on platforms, financial service providers and policymakers to help gig workers become more resilient.
Though updates to business models are needed to help vulnerable workers and their communities navigate this sort of crisis, they aren’t enough. Ultimately, these workers need basic pensions, core health insurance, unemployment benefits and other social protections that need to be supported by general taxation.