Financial innovation: transforming the way of doing goods
There is no doubt that financial innovation plays a vital role in the development of commercial world. The inventions of ATM and online banking make money conveniently available 24-7; Payment network such as Visa and MasterCard has become part of our daily life; a wide range of financial products were created to facilitate transactions and improve the liquidity of market. Those innovations have influenced millions of people.
Imagine a world where people lack basic financial services – transactions are difficult to take place; credits are scarce and expensive; and economy is inevitably moving slowing. It’s time to use the force of financial innovation to promote financial inclusion and improve social benefits.
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The disruptive financial innovation is taking over territory of traditional banking, and have the potential to scale up and help a wider range of people to thrive. Think about the rapid growth of AliFinance, a P2P lending firm launched by Alibaba in 2011. It has offered loans to over 400,000 micro-entrepreneurs with an outstanding portfolio of 105 billion RMB in less than three years. It is foreseeable that more businesses and individuals, who are not served by the traditional banking industry in developing countries, will benefit from various kinds of financial innovation in the future.
Outlook
It is predictable that financial innovation will not only change the landscape of financial industry, but also transform the philanthropy and social enterprises. The governments are embracing the revolution. [Europe 2020 strategy, government investment figures]. Boost the credit supply and improve the social benefits.
Mainstream financial institutions are also showing interests and see profitable opportunities by doing goods. [Visa, Citi, etc]. Appropriate regulation is required the sustainability of the new