Mobile phones have introduced a sea of opportunities in every sector imaginable, and that includes in finance. Today, anyone with a cellphone can engage in one form or another of cashless transaction, be it paying bills, sending phone credit, transferring cash, or buying goods and services — even in flea markets.

But what makes this a game changer in the financial sector is how it has penetrated different levels of society. This applies particularly to the unbanked, who are unable to access formal financial institutions and often borrow money from informal lenders who may charge high-interest rates and where there is no guarantee of consumer protection.

In recent years, new technologies have emerged that are being used to complement and further what mobile money has achieved: machine learning, peer-to-peer lending, biometric technology, cloud computing, and blockchain, among others.

For fintech startups, it’s a means to understand the regulatory frameworks in their country of operation and identify what applies to their situation. Because of their relatively small staff and operational size, these startups often face difficulty complying with a country’s financial regulations, said Newnham, since the regulations were formed with banks that have huge compliance departments and legal experts on board.

Read the full article about Jenny Lei Ravelo about financial technology from Devex International Development