Contest || Impact of blockchain on financial inclusion

Edited in canva

INTRODUCTION

I welcome everyone to this an interesting topic by
@khursheedanwar.

There are growing signs that in the near future, blockchain technology would improve how financial services are carried out. Blockchain can indeed facilitate financial inclusion and can used to conduct financial transactions, insurance, savings and provision of credit facilities. The existence of businesses in the international horizons has witnessed the impact of blockchain in the alignment of international payments and receipts. While there are communities that are in full swing of financial inclusion, other underserved areas are getting financially included through the deployment of blockchain infrastructure.

WHAT IS FINANCIAL INCLUSION?

The world bank asserts that financial inclusion has to do with persons or business organizations that have access to financial items and services that could be affordable and usable which could suit their needs. The items or services could be payments, credits and loans, insurance, and related transactions.

Financial inclusion carried by blockchain technology involves the launch of cost-effective digital approach to get to communities which has been financially underserved, separated or excluded various traditional financial services which are really suitable to meet their financial needs.

This implies that digital financial inclusion is the act of joining the financially excluded or underserved communities to the financial space.

How Blockchain Impacts financial inclusion

Edited in canva

A visible benefit of blockchain technology is that it has the capacity in solving trust challenges by bypassing the need for a central institution or authority . Blockchains have have proven a high degree of outstafing potential in streamlining payments and receipts which has led to the growth of financial inclusion.

Another impact of blockchain technology on financial inclusion is that it can reduce the costs of transactions, powering decentralized applications and making it easier to operate on.

Blockchain technology has widened communities" access to obtain financial services by decentralization.
Decentralized financial services financial services has the capacity to lowering the costs of transactions . Other Impacts includes:

• Enhancing permissionless innovation in the financial sector

• Emergence of new business opportunities for entrepreneurs in financial technology sector

• Blockchain has disintegrated and reordered the traditional finance make -up by decentralization

@khursheedanwar.