For this week’s research article, we dive into new insights on fintech market, banking, insurance, payments, trends, diversity in fintech and more. Happy reading!
Digital Divide Exacerbated During Recent Epidemics, Research Reveals (FT)
While people are significantly more likely to avoid traditional bricks-and-mortar branches during epidemics, many will later return to in-person banking, says a new study, suggesting that closing bank branches during crises could exacerbate the digital divide. Banks should be aware that not everyone has access to digital services, according to a paper by the London School of Economics and Political Science (LSE). It suggests that necessary infrastructure must be rolled out in a manner that encompasses poorer, more remote regions to avoid a widening of the digital divide. Read more.
The Way We Buy Now: The ABCs of BNPL (Techopedia)
Use of BNPL has exploded, accounting for $100 billion in retail purchases in 2021, up from $24 billion in 2020, as reported in Fintech Times. The forecast for the market indicates that the trend is here to stay. The global market for BNPL is expected to hit $3.98 trillion by 2030 with a CAGR of over 45%, starting from 2021, according to Allied Market Research. Read more.
Women in Fintech Part 2: Is the VC ecosystem fundamentally disadvantageous to women founders? (Coin Geek)
According to a study by Automatic Data Processing Inc. (ADP), the finance industry in the U.S. has the second-largest pay gap. Based on ADP’s research, the average salary for women in the banking and finance sector was $27 per hour in 2019, compared to an average hourly wage of $40 for men. The gender pay gap this year is $0.80 for every $1 that men make, the same as 2021. Read more.
Foreign Fintech Companies Flock to Peru (Fintech News)
Peru’s fintech industry is expected to get a boost this year, driven by favorable regulatory developments and rising demand for more accessible and inclusive financial services. Javier Salinas, director of Emprende UP, the center for entrepreneurship and innovation of the Universidad del Pacifico in Lima, Peru, expects the sector to grow from 171 fintech companies, as of September 2021, to more than 200 this year. A third of these companies will be coming from overseas, significantly exceeding the 10% share they held a year ago, Salinas shared with local newspaper Gestion earlier this year, an influx which will be fueled by attractive market conditions and positive developments, including recent crowdfunding rules, law amendments in the banking and finance sector, as well as early discussions on open banking and open finance. Read more.
Advancing Digital Entrepreneurship and Financial Inclusion in Côte d’Ivoire (WorldBank)
In 2021, the World Bank conducted a study to assess the financial technology (Fintech) and digital financial services landscape in Côte d’Ivoire. The findings contributed to an acceleration of ongoing national and regional work in improving the enabling environment, as well as access to finance for Fintech companies. It also opened a dialogue between Fintech entities, the Ministry of Finance, and the Central Bank West of African States (BCEAO). Additionally, the study identified women-led Fintech companies as key players to drive access to digital financial services in Côte d’Ivoire. Read more.
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