1. Pipeline development: Fintech services are digital, mobile apps and services. there “asset light” business-models with low up-front capital costs and low marginal costs were able to serve customers living on less than $2.50 a day and turn a profit.
  2. Co-investors: That global banks and data-driven philanthropists see such firms as a source of both growth and large-scale impact with the global poor, signals the arrival of “inclusive fintech” as a disruptive innovation.
  3. Capital gap: Sitting between financial services and billions of lower-income customers are a whole lot of business models and technologies that need time, support and capital to understand the nuances and spending patterns of a largely unserved population.
  4. Asset-light: Building a profitable and investable company that reaches the poorest of the poor takes the proverbial village. But it appears it can be done.
  5. Use-cases: The bottom of the world’s economic pyramid and those just above that level who have escaped poverty but are at risk of falling back into it makeup about half the world’s population. If you’re a firm looking for growth, “You cannot neglect those numbers,” says del Ser.

Read the full article on fintech by Dennis Price at ImpactAlpha