The global ecosystem of payments is in the process of changing- and the topic of having access to financial inclusion has been gaining a lot of attention around the world lately, especially in underdeveloped and developing countries.
Policymakers worldwide have been getting concerned about the financial state of these particular countries and have become increasingly aware of the fact that there is a lack of equal distributions of finances being provided throughout the global population. Consequently, this has led to many negative effects on economic growth, distribution of income, levels of poverty, and much more.
Financial inclusion is an important asset for the worldwide population as it allows them to gain access to an equal amount of financial services, which they can use for personal reasons such as saving up for retirement or using it as a means of educational payment. Or it can even be used for business purposes such as investing in new business opportunities, etc.
The financial crisis in different parts of Asia has significantly affected the lives of individuals and businesses due to the growing lack of financial services being provided their economy.
According to VOXEU, many financial institutes were deteriorating in the past couple of years before the crisis occurred. For example, in Thailand, a bank was taken in by the authorities in 1996 when it had incurred many significant losses during a speculative and disingenuous lending policy. In Korea, many banks had suffered many losses when it to their value portfolios in, again, 1996. Plus, in Indonesia, their banking system was a victim to several distressful signs which had started arising in 1995.
In the 1990s, many bank-related financial institutions in Southeast Asia had started expanding and began lending procedures to the private sector at an extremely fast pace, which exceeded the official GDP growth rate. This particular lending process becomes a source of terrible asset quality because the ones who were burrowing these services had more viable projects which granted them credit. Financial institutions became unable to monitor their burrowers which continued to lead to failure of keeping track of the pace of expansion of loan portfolios.
It has become extremely difficult to manage these growing crises; however, not all hope is lost. Many leading figures, such a Tanvir A Mushuk, have been working on improving these crises one at a time- starting with Bangladesh, the biggest delta of that world which has recently qualified to graduate into a developing nation from a Least Developed Country (LDC) after 45 years.
Mushuk is an internationally recognized FinTech leader, innovator, and entrepreneur who currently serves as the founder and the managing director of Nagad. He holds a 15-years’ worth of track record of excelling at driving financial empowerment via small businesses towards market-leading corporate brands. Additionally, through his business journey with Sigma Telecom Limited and Sigma Group, he was able to make it much easier for people in Bangladesh to communicate with people around the world with internet access after revolutionizing the International Telecom Gateway (IGW) business.
With innovations towards a digitalized modern society, Mushuk was further able to improve the economic state of Bangladesh by integrating technology with finance in order to drive financial inclusion to further enhance the economic structure of Bangladesh for the better.