Sunday, March 26, 2023 | Ramadan 3, 1444 H
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Financial services and innovative payment methods

Despite the spread of many financial services in the world during the past five decades, there are about 1.4 billion adults without bank accounts as of mid-2022, according to World Bank data. These financial services play a major role in promoting and spreading economic and social development in a country and facilitate a better life for living, as a result of transferring savings of foreign workers their money to families. This is what makes the demand for financial and banking services increase dramatically. Today, only around 76% of adults can access bank accounts globally, compared to about 51% a decade ago.

Banking and financial services have flourished in the Gulf region inhabited by more than 150 nationalities from different countries of the world and with the support of the Gulf Central banks.

Although the world is going through many economic and geopolitical crises today, in addition to the conflict over the global economy due to inflation issues and the decline in the value of local currencies for a number of countries due to debt, supply chain problems and restrictions, high commodity prices, and unemployment, new financial solutions for payment help many emerging markets to obtain billions of dollars and the creation of new capital to be used in various purposes of development interest. They are obtaining the necessary materials for livelihoods, continuing productivity and providing thousands of job opportunities for the unemployed.

We have noticed the impact of the lack of financial transfers from cash payments during the spread of the Covid-19 pandemic, but with the presence of digital transfers and new financial transfers, this aspect of the negative effects has been bridged, as financial technology has been able to provide consumers with a variety of payment options.

Among the factors that help the continuation of new financial and banking services is the continuation of global population growth, especially among young people who can be creative and proficient in technological business, and the modernization of global financial and banking services that can attract emerging markets and support them with large investments, whether in Asian or African markets that started in obtaining financing for various economic sectors.

Modern marketing methods have also helped in the growth of remittances through commercial policies of purchasing products and paying later, which helps expand financial inclusion in the world, increase the number of consumers and enhance the capital of institutions. Today, what helps achieve this system is the existence of mobile phones through which digital payments can be carried out, which have witnessed a great boom, in addition to reliance on them by other Asian and African peoples in all cities and rural areas. Through these devices, users can generally make payments, store and receive money, issue receipts via mobile phones, and make money transfers, especially in areas where there are no banks and financial service bureaus.

Despite these advantages, official institutions and central banks must monitor these financial activities and not leave the ropes open, so that they do not lead to an increase in money laundering operations in the world.

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