The un(der)banked is FinTech’s largest opportunity

and FinTech companies can leverage these peer recommendation
networks via trusted brand partnerships, community outreach
programs, and distribution through consumer-favored methods in
order to establish trust and expand their brands.
Existing peer-to-peer financial services models also may help. In
developing countries, many consumers borrow money from friends and
family or other sources of short-term credit outside the traditional
financing world. Interestingly, aspects of this “communal lending” are the
exact characteristics that underlie the burgeoning peer-to-peer (P2P)
insurance model and could serve as a strategy for lending in un(der)banked
populations. Many P2P insurance models rely on the formation of groups
that share common attributes — this is a proxy for social responsibility in
the model. Communal P2P lending models may achieve the stated goals
of gaining trust and tapping into consumer behavior and could emerge as
a conduit to migrate the un(der)banked beyond payments.
Exhibit 3
Emergence of services for the un(der)served is a core trend within
DeNovo
DeNovo helps firms identify where innovation can impact their business, as well as the
potential downstream industry change. Below is a screenshot from the DeNovo consumer
lending industry subsector site. We can immediately identify the trends relevant to this
subsector — in this case, the emergence of services and solutions for the un(der)served —
along with the technologies, business models, and related startups at this specific
intersection.
Source: Strategy& analysis
Strategy&
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