• Digital ID is the key to enable faster and more inclusive economic recovery.
  • Kovid-19 has had a devastating effect on small businesses, but digital devices can provide a way to recover by allowing SMEs to gain capital and a wider customer base.
  • The start of digital asset management in China is a testament to the success of financial production and the development of advanced financial infrastructure.

The Covenant-19 epidemic has accelerated the use of digital finance platforms as a key tool in transaction processing. As a result, it is more important than ever to ensure that all consumers and small businesses have access to the necessary technology.

A New white paper published At the World Economic Forum, Responsible Financial Systems demonstrates three ways in which we can formulate public policy for future use of innovation and financial inclusion.

Financial Technologies Banks and beginners offer new ways to deliver a variety of services tailored to the needs of their customers. Although we have seen some impressive growth in financial inclusion in some markets, it is unbalanced and there is a lot to learn around the world.

Our discussion in the Council focused on 6 areas of focus, and we were amazed at how digital-enabled financial inclusion dominated our discussions alongside digital assets and net zero. This digital change offers stakeholders a number of opportunities in the financial system, three of which we will focus on.

Image GFC Response Financial Systems

Instant 1 ፡ Digital ID is a digital stimulus for the future.

Financial technology or fintech is rapidly filling a gap in the financial services market in the traditional banking system. Digital identification systems for individuals and enterprises open up enormous opportunities to provide access to financial services that are inaccessible to up to 1.7 billion adults worldwide. It also ensures effective digital infrastructure and new payment processes not only benefit the bankless and poor communities, but also continue to create and access e-commerce and business finance.

The creation of new business models in the digital economy requires new frameworks to build trust in data sharing and management. Further development requires close collaboration between private and public institutions in the development and implementation of digital smart regulation. In the Fintech ecosystem, objective control over digital financial services and cross-border payments can promote growth and further improvements in digital banking and digital payments.

Accelerator 2 ፡ Support SMEs recovery

Small and medium enterprises (SMEs) are the foundation of the global economy and the backbone of local communities. They are entrepreneurs, community builders, entrepreneurs and drivers of creativity, competition and diversity. While the CVD-19 epidemic has had a devastating effect on small businesses, digital devices can provide a way to recover.

Digital trading tools enable SMEs to gain a broad base of domestic and foreign customers and remain competitive in the face of large e-commerce platforms. Alternative Credit Assessment Financial Institutions provide new ways for SMEs to acquire the most important capital. Financial institutions can support SMEs by providing access to digital platforms by providing customers with comprehensive channel access, cross-payment payment systems and information-based services.

Increase access to instant 3 ፡ digital investment services

A case study at Tsinghua University’s PBC Finance School shows that digital services have significantly changed consumer habits and provided tangible benefits to individuals during the Chinese epidemic.

Chinese asset managers have adopted Internet technology to reach new customers who have previously purchased their products at a bank branch. After purchasing asset management solutions, they have strengthened their digital services to connect with their customers.

The rapid pace of change in consumer demand for digital products.

Image GFC Response Financial Systems

At the time of the outbreak, Chinese investors’ relationship with digital asset management services increased significantly (Figure 1 shows the rate of change in consumer access to digital products). The CVD-19 epidemic is being used as a game changer in China to make digital financial services easier and more efficient for investors to change their behavior. One of the reasons for this ‘sticking’ is that compared to traditional asset management offerings, the digital asset management model offers additional benefits to users, such as more efficient service delivery, lower transaction fees and more personalized customer experience with big data and more.

However, despite the rapid growth of adoption, there are still challenges to this new model, one of which is investor education. As digital service providers become more sophisticated in their use of investment products, they need to find new ways to educate their customers and provide ongoing education about the products they offer.

With unprecedented data and ubiquitous intelligence, it is important to rethink how organizations manage personal information and digital identities. User-centered digital IDs that enable individuals to access their own data and secure trusted physical and digital communications – from government services or e-payments to health certificates, secure mobility or work.

The World Economic Forum reviews A platform for good digital identity To collaborate in the development of global digital identity activities and to focus on the needs of the user.

The forum brings together public-private digital identification collaboration from Travel, Health, and Financial Services in a global action and learning network – to identify common challenges and to find practical solutions to support current and future integration. Also as industry-oriented models Recognized travel digital identity Or Decentralized identity models Show that there may be digital identification solutions to honor the individual.

To sum up, the process of recovery and financial inclusion is largely driven by the efforts of digital devices and the cooperation of financial institutions, governments and technology sectors to ensure equitable and equitable access for all.

watch out over here Full list of members of the Financial Systems responding to the International Council for the Future.