For years, traditional financial institutions in different parts of the world have been attempting to narrow the financial exclusion gap by extending their services to the unbanked population. Yet for many reasons, these institutions still cannot avail their products and services to everyone that needs them.
Regulatory Hurdles
While there are several reasons cited for why banks are still not able to do this, their failure to serve this unbanked population has, on the other hand, led to the meteoric rise of fintech startups. Instead of relying on metrics often used by traditional banks when making a decision on whether to open a new branch or not, fintech startups such as Eversend are often primed to serve even those without regular incomes.
For individuals like Stone Atwine, a veteran banker who has been named in Forbes’ 30 Under 30 List for Europe, and Technology, the failures of large financial institutions have created opportunities. In addition to explaining why he thinks traditional banks have failed to close the financial exclusion gap, Atwine (co-founder of Eversend) also shared his sentiments on crypto, stablecoins, and Web3 with Bitcoin.com News.
Below are Atwine’s responses to questions sent to him via email.
Bitcoin.com News (BCN): You have worked for several conventional financial institutions and in different capacities. What can you say about their efforts to extend financial services to the unbanked? Do you see them ever succeeding at this, seeing that it has been several years since they started talking about financial exclusion?
Stone Atwine (SA): Traditional banking systems are not optimized for serving people without massive incomes. Branch networks, compliance systems, and limited efficiency do not allow them to serve the unbanked. The economics do not make sense for a traditional bank if they cannot earn a minimum amount of money from customers.
BCN: In your opinion, why are fintech startups doing a better job of bringing…
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