Digital banking platforms are stepping in and filling the gap as they provide millions of unbanked people with access to financial services. As digital financial services evolve, both banks and non-banks have the opportunity to reach millions of previously excluded and underserved populations. Mobile phones, smartphone apps, digital assets, and emerging technologies like central bank digital currencies (CBDCs) and decentralized finance (DeFi) are playing a significant role in expanding financial inclusion.
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This digital transformation is benefiting millions of individuals who are transitioning from cash-based economies to formal financial services, including payments, transfers, and savings. This trend is set to increase as more technologies and innovations roll out in the coming years.
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Unbanked: The Global Picture

About 31% of adults globally are unbanked, according to the World Bank. These 1.7 billion people lack access to a bank account via a financial institution or mobile money service. In the United States, around 17.2 million adults are unbanked, and 46 million are underbanked, according to the Federal Reserve. This has led to a rising demand for alternative financial providers, such as challenger banks, neobanks, and decentralized financial services.
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Innovative payment platforms and services are working to serve the unbanked and underbanked by providing safe and easy access to financial services. By leveraging technologies such as virtual payment cards, mobile phone payments, and digital assets, these services are making banking platforms and secure transactions more accessible.
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Benefits of Digital Banking Services for the Unbanked

The essential components of digital banking that foster financial inclusion for the unbanked include digital banking platforms, smartphone banking apps, and point-of-sale (POS) payment services. Together, they enable customers to make and receive payments, view and manage their finances, and make seamless payments to merchants.
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The benefits of digital financial inclusion for the unbanked include:
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• Access to financial services: Enabling people who previously had no access to traditional banking to manage their money and make transactions.
  
  
• Cheaper transactions: Digital services typically offer lower fees than traditional banking, which is crucial for underserved populations.
  
  
• Personalized financial services: With emerging tools like artificial intelligence (AI), digital services can offer tailored financial advice and solutions to individuals based on their unique needs.
  
  
• Greater security: Digital banking services help protect against theft, fraud, and loss, offering users more control over their assets.
  
  

Financial inclusion can also enable people to begin saving and planning for their long-term financial well-being, increasing their economic participation and empowering them.
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Digital Assets and Blockchain: A Key to Financial Inclusion

In addition to traditional digital banking tools, digital assets are increasingly being integrated into financial services. Digital assets, including cryptocurrencies and stablecoins, can offer lower transaction fees, faster cross-border payments, and increased financial access for people who do not have access to traditional banking infrastructure.
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For example, digital wallets and decentralized finance (DeFi) platforms allow users to send and receive funds, access loans, or make investments with minimal overhead. These services can be especially impactful in regions with underdeveloped financial infrastructure, where users can access financial services directly via their smartphones.
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Stay Ahead of the Curve with Baanx

As digital assets become more integrated into mainstream finance, it’s crucial for organizations to consider the infrastructure they need to continue serving customers, including the unbanked. Baanx plays an essential role in this transformation by offering innovative financial solutions for businesses and consumers alike.
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We can help you develop the necessary back-office architecture to launch digital banking services quickly and securely. Baanx offers:
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• Virtual and physical debit cards
  
  
• Virtual IBANs
  
  
• Forex services
  
  
• Embedded financial solutions with digital assets
  
  

Our open API platform bridges the gap between traditional fiat currencies and digital assets, enabling you to launch new financial services rapidly and safely.
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How Baanx Can Help Foster Financial Inclusion

At Baanx, we are committed to helping businesses create accessible, secure, and efficient digital banking services. Our platform allows users to access seamless financial services that enable financial inclusion, particularly for the unbanked.
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With the continued rise of CBDCs, DeFi, and other blockchain-based technologies, we can provide businesses with the tools to integrate digital currencies into their offerings, ultimately improving financial inclusion and fostering long-term economic empowerment.
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Interested in learning more? Contact us today to see how we can help expand your financial services and reach the unbanked populations of tomorrow.

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