Technology gains credit as an antidote to financial exclusion

He 70% of Spaniards They prefer cash as a means of payment. According to the CNMC, since 2008 the 30% of ATMs in our country. In rural areas, this data means that neighbors sometimes see the only ATM in their town disappear. Hundreds of people are unable to carry out financial transactions without having to travel. a problem that worsens in the case of older people, since age can make such mobility impossible.

However, technology can be a very powerful weapon against this problem. Its galloping advance, which is sometimes an accelerator of inequality, can also turn in favor of society to create a more inclusive reality, as long as it is democratized in favor of the general interest. A digital support from which other groups threatened by financial exclusion, such as immigrants or the elderly, can also benefit.

The Spanish Banking Association (AEB) has carried out numerous studies on this matter. Regarding the inclusion of society in banking, they tell ABC that among the 97 and 98% of the population Spanish has a checking account. In the case of rural areas, the latest report of the Valencian Institute of Economic Research (IVIE) of 2023 reflects that only 0.9% of the Spanish population lives in municipalities without access points to cash. Thanks to the banking measures, they say, “almost total access to cash has been achieved in our country.”

In relation to the studies that reveal the problems of exclusion, the AEB, CECA and Unacc They signed the ‘Strategic Protocol to reinforce the social and sustainable commitment of banking’ at the beginning of 2022. According to an Inmark survey, the 84.6% of those over 65 years of age They feel quite or very autonomous when operating with their bank. The degree of satisfaction of the elderly who use mobile banking is 92.3%, 89.3% in the case of internet banking and 79.9% in the office. However, this figure exceeds 88.6% in the case of municipalities with up to 1,000 inhabitants.

Limits and allies

Regarding the groups most affected by financial exclusion, Santiago Carbó, director of Financial Studies at Funcas, is clear: the eldersespecially those who live in small towns, have it very difficult. The lack of digital skills forces them to resort to physical offices, but the disappearance of these points greatly limits them. Likewise, he believes that migrants They are also one of the groups most affected by financial exclusion, since many banking entities require papers to open an account. However, Carbó believes that artificial intelligence can play a key role in solving this problem. «Thanks to its development, AI is capable of adapt to the needs of each userguiding you in a personalized way in the digital processes of banking,” he assures. According to Funcas data, more than 90% of bank clients have ever used digital banking and, thanks to tools such as chatbots and virtual assistants, those with low digital skills can find digital banking more accessible. At the same time, he believes that the current challenge is to educate new generations so that they know these possibilities.

The innovation offered by agile startups is also an ally in this battle against exclusion. Mónica Correia is the CEO of Nickel, a fintech owned by BNP Paribas, which has been working against inequality in access to financial services for ten years, more than three in Spain. One of its initiatives is to solve the absence of ATMs in rural areas.

Thanks to cashback technology, one of Nickel’s contributions is that today bars or lottery administrations in towns are also ATMs. The neobank has more than 2,000 Nickel points in Spain, that is, local businesses where customers can create an account instantlyreceive a card and make cash deposits and withdrawals. A balm against the disappearance of ATMs «We are very concerned about reaching everywhere, as well as contributing to local commerce. We bring them new clients,” he says. Correia. From Nickel they highlight the simplicity of their service. Its CEO explains that they never launch a service if they don’t know for sure that anyone could understand it. They have already acted in towns like Villanueva de Duero, in Valladolid, which saw its only ATM disappear, and they will soon expand their influence in the Community of Madrid.

Looking to the future, Correia believes that the situation will continue to improve, but believes that the law should adapt to the new reality. A payment and electronic commerce entity cannot be a collaborator of Social Security currently. There is a bill in the works, and Nickel hopes it will be passed soon to continue working on the problem.

open doors

Immigrants are another group at risk of financial exclusion. Harold CorreaCEO of Íkualo, knows well the experience of immigrating. When he arrived in Spain from Colombia, 25 years ago, he did so “without much money, but with many hopes.” He had to sleep on the street looking for work, and found himself unable to open a bank account. There he came up with an idea that now has a name: Íkualoa neobank with more than 50,000 clients aimed at making financial management in Spain easier for migrants.

Taking into account that in Spain there are more than seven million migrants, who represent the 3% of GDPCorrea is clear that his service fulfills a social function. This is how they define themselves, as a ‘social fintech’ focused on helping their community. He states that migrants need many more services than a bank account: from a microcredit for the ‘leasing’ of a van to work with, even a platform for send remittances to their countriesÍkualo is based on an IBAN and provides its clients with a world of possibilities to integrate into the Spanish labor market. «Spain needs migrants, for example for pensions. You have to create products for them,” says its founder.

Regarding the use of technology, Correa, a programmer by profession, affirms that they use the big data, blockchain and AI for all your services. One of Íkualo’s products consists of offering a ‘scoring’ to your clients. Using artificial intelligence, they have developed a predictive engine that analyzes the client’s financial habits and determines the extent of their solvency. From this data, it creates a score, which will serve as collateral when requesting a loan or mortgage.

The CEO of Íkualo recognizes that fintech is faster than traditional banking, and much faster than the law. He explains that, sometimes, Governments do not understand the technology they useand that generates rejection. However, he notes that more and more traditional banks are investing in blockchain, and that the stance towards new technologies has softened.