International Microfinance Seminar: Innovation and Technology in Financial Services
From June 15-17, Triple Jump Senior Investment Officer Daniel Naf participated in the Microfinance Seminar “Innovation and Technology in Financial Services for Inclusion” organised by the Peruvian Federation of Cajas and Caja Trujillo. The objectives of this seminar were:
• To reflect upon the profound technological changes that affect the current financial industry
• To propose immediate actions to become players within the current wave of changes
• To compare technological initiatives and proposals that will allow the further development of inclusion
In the last years, following the international financial crisis, the financial services sector has reoriented its focus and strategies to serve an ever-more demanding and globalised market. In this sense, microfinance institutions must assume new challenges, modernise their services and adapt to the whirlwind of technological change. The digitalisation of financial services is not alien to the microfinance sector therefore is indispensable to adapt to and to incorporate change such as disruptive innovation, B2B, “electronic money”, mobile banking and digital banking to the strategies.
This wave of change also ignites a huge demand for transparency towards investors, who wish to know where their money is and how much is it yielding back to them, and this demand will grow in the future. In the digital era, financial transactions have become simple, direct and fast, and can be performed from any place and at any time.
Low-cost online investment methods allow the democratization of financial services so that it is widely available, and we hope that our clients and associates also participate in this phenomenon. Transparent risk management, which makes all the calculations and codes available to users, is already a usual practice in microfinance institutions.
A statement made by International Director of PayPal Developer, John Lunn, captures the current trend of the digitalization of the financial world “The best type of payment is that which cannot be seen. This is the future usage of money.” With that in mind, it becomes imperative to reflect upon the following:
Are we ready for such a paradigm? Should we build it from our own needs or join the one that has already reached our markets? How can technologically-advanced sectors contribute to this development?
For Triple Jump it is critical to participate in seminars like this one to see how current and new, world-wide trends in financial technology and innovation make their way to and impact the Peruvian (and Latin-American) microfinance markets; for networking purposes with the leaders of technological innovation and development, and with MFIs that have acquired or intend to acquire these new technologies; and to show Triple Jump’s presence as an active participant and proponent of technological development and innovation in the Microfinance sector.