From lending to payments, transactions are being ‘vaporized’, a term coined by author, Robert Tercek, meaning that anything physical that can be information will become information, at the same rate as other services, perhaps even faster. Money digitization invariably means money with wings in a layman’s language. For instance, when you have physical cash in your pocket, say N10,000, there are limited things you can do with it right on a spot aside having to make physical transaction. One cannot send money to an account or make online payment without either getting to a financial institution or an agent of such institution.
So long as there is still huge reliance on financial institutions, especially banks as well as dependency on cash, there would still be a high level of financial shock. This can either be from your inability to cash out money as a result of reliance on network or even the cumbersome processes around it, to its unsafe and expensive mode of cashing out.
Across all regions, cash digitization plays a key role in ensuring access to equal financial service. However, the knowledge of this often times than none exist just within a particular sphere of the society, especially the center within which it was created while the under-served/unbanked adult population, consisting of majorly people in rural communities are still unable to feel the impact of financial services, and struggle daily with their finances. Occurring either through their lack of trust in the system, resulting in further alienation from benefits of being a part of the system or as a result of none access to financial services at all.
Agreeably, rural communities within the country have a good number of small scale businesses and transactions that occur daily (either from the sales of agricultural items to the purchase of provisions among others), contribute it’s quota to the nations economic growth.
Financial literacy and the creation of innovative Fintechs will not only reinforce the values of digital payment but also help expand low-income customers access to other financial services, such as credit and savings for micro and small enterprises, which further goes a step in reducing societal inequality. At the same time, allowing money to be used for whatever service that they desire at whatever time.