Fintechs have emerged as the primary drivers of global financial inclusion, breaking barriers that traditional banks have, for decades, been struggling to address.
In recognition of the potential fintech solutions hold, the World Bank and IMF jointly launched the Bali Fintech Agenda back in 2018, with 12 policy proposals, some of which focused on:
- Enabling new technologies to enhance financial service provision, and
- Fostering fintech to develop financial markets and promote financial inclusion.
Six years later, the foresight behind this agenda-setting has materialized in how fintechs have leveraged a blend of technological innovations to bring financial services to previously underserved and unbanked populations.
This is especially the case in markets where traditional financial systems often exclude people based on language, literacy levels, disability, geography, or lack of credit history.
Artificial intelligence (AI) stands out among the technologies that have not only improved the efficiency of fintechs but have also greatly impacted the improvement of their inclusivity, accessibility, and usability.
This article explores how AI is reshaping fintech by lowering barriers, personalizing experiences, and enabling underserved users to participate in the financial system.
But first, a quick look at what fintech aims to solve within this context.
Financial Exclusion: The Problem Fintech Is Trying to Solve
Broadly speaking, financial exclusion refers to a situation whereby a population, demographic, or group of individuals lacks access to or has difficulties accessing basic financial services and products, including savings, local and international money transfers, credit, and loans, among other services.
Financial exclusion embodies implicit and explicit effects that may affect:
- Unbanked and underbanked populations
- Migrants and remittance users
- People with disabilities
- Low-literacy or non-native language speakers
The World Bank notes that fintech has been instrumental in decreasing the number of adults without access to a financial account from 2.5 billion to 1.4 billion from 2011 to 2021.
However, digital access is not enough; while the number of people without access to transaction accounts hovers around 1 billion now, billions still lack full access to financial services.
Top fintech companies acknowledge that financial exclusion is not just about access. Even where access exists, people may choose not to engage if the available financial services are unfavorable or do not meet their needs.
Therefore, the need to make fintech apps usable, understandable, and trustworthy remains a crucial part of the global financial inclusion agenda.
This is where AI changes the game as a leading technology in fintech financial inclusion strategies.
AI-Powered Accessibility: Designing for Everyone
AI systems, including machine learning, natural language processing, and large language models, have laid the foundation for fintech to develop smarter apps with more inclusive designs that address language, literacy, and disability barriers to financial inclusion.
Voice Interfaces and Speech Recognition
Voice-activated assistants and voice-enabled transactions in fintech apps empower people with disabilities, language barriers, and limited literacy with hands-free, intuitive access to financial services.
For previously excluded users, this level of access means being able to fully understand and utilize financial products and services independently.
AI-Driven Language Translation
Fintech companies are using AI-powered language translation models to break into underserved markets, delivering multilingual apps that account for local contexts and intricate nuances.
By using AI language translators to localize their apps for different markets, fintechs strategically remove language as a barrier to accessing, understanding, and using basic financial services across a highly heterogeneous customer base.
Adaptive Interfaces
AI-powered interfaces can analyze a user’s behavior while on a given fintech app and tailor app features, such as budgeting and savings tips, to meet the perceived needs of the user.
This helps people with limited financial literacy have a better grasp of financial services and products.
Personalization Through AI: Making Finance Feel Human
Fintechs leverage context-aware AI to improve app usability through personalization across different provisions, including the following:
Smart Onboarding
Similar to AI’s application for adaptive interfaces, fintechs also code context-driven AI algorithms to onboard users.
AI can, for instance, tailor explanations based on user behavior or level of technical experience or proficiency, enabling intuitive use of the app.
Personalized Financial Insights
Where traditional financial systems typically provide generic financial insights to a customer segment, context-aware AI in fintech apps hyper-personalize financial insights for each user based on their needs and behavior.
Personalization, in this context, may vary across users, from spending summaries in plain language to budgeting tips adapted to income patterns.
Context-Aware Notifications
Notification fatigue makes users pay less attention to notifications from their service providers, resulting in people often missing important notifications.
With AI, however, notifications are more precise and paced to enhance user engagement. AI can time alerts to salary deposits or recharge cycles, and even analyze user behavior to deliver valuable and actionable notifications.
Generally, personalization at this scale helps build confidence and trust in financial services, especially among previously excluded or underserved populations.
Smarter Customer Support: Always On, Always Learning
AI in customer support is probably the most noticeable use of AI for fintech-driven financial inclusion across multiple facets, especially the following:
24/7 Support in Multiple Languages
Reputable fintech apps provide 24/7 AI chatbots and virtual assistants that provide users with real-time responses to their inquiries in their preferred language.
An immigrant making a money transfer to Haiti, for instance, can interact with AI customer support and get a response about their transaction right away, no matter the time of day.
These AI assistants are programmed to provide accurate responses at all times, greatly speeding up issue resolution.
Intent Detection and Sentiment Analysis
In addition to being available 24/7, AI support agents learn and understand users better with every line of interaction.
This enables AI agents to analyze user sentiments and intents for signs of frustration or confusion. And in cases where the AI agents are unable to address such frustrations or if the given issue is complex, they immediately escalate it to human agents.
Overall, AI-powered support in fintech apps significantly improves access for users in different time zones or rural areas, guaranteeing that limited banking hours don’t translate to limited service support.
Trust, Security, and Ethical AI
Beyond customer support, personalization, and accessibility, fintech apps have also extensively leveraged AI identity verifications and fraud detection, protecting vulnerable users from scams.
However, for all the benefits of AI in global financial inclusion, the need exists for fintechs to adopt global best practices towards guaranteeing transparent algorithms, data privacy safeguards, and inclusive training data for AI.
Addressing these concerns can go a long way to allay users’ perception of risks associated with AI-powered app features, greatly increasing user adoption. And consequently, financial inclusion.
The Future of Inclusive Fintech: What Comes Next?
In the Future of Global Fintech report, the World Economic Forum (WEF) predicts that, from 2025-2030, AI will continue to lead the charge in fintech innovations, with regional interoperability, embedded finance, and open finance strengthening the foundation for broader financial inclusion.
The same report also shows that about 74% of fintechs believe that AI is the most relevant issue for development in the coming years.
Overall, users can expect more conversational finance, AI financial coaches, and greater localization of fintech apps. Within this context, AI’s real value lies in empowering users, not replacing humans, as a means of extending inclusion.
Essentially, fintech apps that embrace inclusive AI designs will be shaping the future of global finance.
