According to research conducted by McKinsey Global Institute, providing financial services by mobile phone could increase the GDP of all appearing economies by six percent to $3.7 trillion over the following 10 years and give space for 95 million new job places.
Mckinsey claimed that 2 billion individuals and around 200 million micro and midsize businesses in appearing economies have a limited access to savings and credit these days, reducing economic growth rate.
The company is certain that the financial services delivered by mobile phones and internet can have a drastic impact on economic prospects of individuals, businesses, and governments across the fast-developing world.
McKinsey’s research suggests that that digital finance can ensure access to 1.6 billion unbanked people, more than 50% of which are women, as well as extra $2.1 trillion of loans to individuals and small businesses could be made on a constant basis, as providers acquire the possibility to evaluate the credit risk for a wider circle of borrowers. Governments could generate up to $110 billion annually by minimizing the leakage in public spending and the collection of taxes.
By opting for digital accounts instead of traditional ones, providers of financial services can save up to $400 billion per year in direct cost, which reduces the costs spend on servicing from 80 to 90 percent.
The research calls mobile phones ‘game-changer’ capable of making all this come true, highlighting that in 2014 80% of adults in appearing economies had a mobile phone, while only of those 55% had financial accounts.
The report claims the following: “Rather than waiting a generation for incomes to rise and traditional banks to extend their reach, emerging economies have an opportunity to use mobile technologies to provide digital financial services for all, rapidly unlocking economic opportunity and accelerating social development.”