As AI and blockchain can drive financial inclusion

As the world continues to combat issues of financial exclusion, inequality and access to basic banking, it is more important than ever to study innovative solutions that can prevent this gap. Two technologies that are increasingly used to drive financial inclusion are artificial intelligence (AI) and blockchain.

What is financial inclusion?

Financial inclusion refers to a process that ensures that all individuals have access to a basic banking service, such as deposit accounts, credit cards or loans without dealing with significant obstacles. This may include people who lack a stable income, live in areas with limited infrastructure or from communities that are not sufficient.

Financial Inclusion Challenges

Despite efforts to expand financial inclusion, many people face significant problems trying to access basic banking services:

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Digital reading skills

: Many people lack skills and confidence to use digital technology.

• A limited approach to physical infrastructure : Areas with limited internet connection, insufficient roads or lack of bank branch may hinder access to traditional banking services.

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High fee and fee : Excessive fee can output individuals’ resources, making their finances difficult.

• Lack of trust in authorities : Some people can hesitate to use digital banks because of security, data protection or reputation concerns.

How can AI drive financial inclusion

The artificial intelligence (AI) has the potential to revolutionize financial inclusion by dealing with some of the challenges mentioned above. Here are some ways AI can contribute to:

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Automated Customer Service : AI -powered chat robots and virtual assistants can provide support around the clock, answering frequently asked questions and helping customers to navigate difficult banking processes.

• Personalized Financial Recommendations : AI algorithms can analyze individual financial data to identify areas of improvement and provide personalized advice on budgeting, saving or investing.

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Risk assessment and protection : AI -powered risk management tools can help identify possible safety threats and flags suspicious transactions by reducing cybercrime and financial fraud risk.

• Rationalized account opening : AI -led account opening processes can be faster and more efficient than traditional methods, making it easier for new customers to access banking services.

How a blockchain can drive financial inclusion

Blockchain technology has the potential to change financial inclusion by providing a secure, transparent and decentralized platform for financial transactions. Here are some ways of blockchain can make your own contribution:

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Safe and reliable : Locking circuit -based systems can make a constant entry of all transactions, ensuring that the data is protected from counterfeiting or changes.

• Low cost : Blockchain technology can reduce the need for intermediaries, such as banks or payment processors, reducing transaction fees and costs.

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Increased efficiency : Automated processes can improve transactions and reduce manual work, making it easier to access financial services.

• Improved availability : Locking circuit -based systems can provide a secure and reliable platform for mobile banks and digital payments.

Examples of successful financial inclusion initiatives

Several successful financial inclusion initiatives have already used AI and blockchain technology:

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Paytm Digital Payments : Indian Fintech company Paytm has used ai -powered chat robots to provide immediate transactions and non -cash payment services.

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