Financial Technology Trends in the Underbanked Market

This report examines key trends in emerging financial technologies (FinTech) impacting the underbanked marketplace today. It highlights a selection of noteworthy companies capitalizing on these trends to improve consumer financial health and their own bottom line. The paper states that unmet demand for high-quality financial products presents a genuine opening for FinTech startups to disrupt an entrenched industry while improving the financial health of millions of Americans. Key trends include:

• Harnessing social networks to enable opportunities for peer-to-peer lending and improve the quality and depth of data used to identify credit risk;
• Solving the cash in/out problem through digital payment networks which can smoothly transition funds;
• Leveraging Big Data for better risk management which enables access to new sources of available capital and a wider field of qualified borrowers with greater accuracy;
• Scaling up by exploiting B2B distribution channels to rapidly reach  target underserved consumer base.