The global financial divide is a pressing issue that highlights stark inequalities in access to financial services. While developed countries enjoy a high level of financial inclusion, a significant portion of the population in developing nations remains underbanked or completely unbanked. According to the World Bank, approximately 1.7 billion adults do not have access to a basic bank account, with the majority residing in low and middle-income countries.
The underbanked demographic, often including SMEs, faces a multitude of challenges, from lack of credit history to minimal collateral, which restricts their access to basic financial services like savings, credit, and insurance. Traditional financial institutions frequently overlook this segment due to perceived risks, further widening the financial divide.
Understanding the Underbanked Phenomenon
The high number of underbanked businesses, particularly SMEs, poses significant economic and social challenges. Economically, these businesses are often the backbone of local communities, contributing to job creation and innovation.
When they’re underbanked, their growth is stunted, which has a domino effect on employment rates and economic development. They may struggle to secure loans, manage cash flow, or even maintain basic banking functions, thereby missing out on opportunities for expansion and innovation.
Socially, the exclusion of SMEs from the financial system exacerbates income inequality. When these businesses can’t grow, neither can the communities around them. This has long-term implications for social mobility, as limited economic opportunities can trap generations in cycles of poverty.
Silverbird Solution-Oriented Approach
Inspired by Max Faldin‘s observations of widespread underbanking among SMEs, Silverbird was founded to bridge the financial gap that traditional banks often ignore. Core values include Financial Inclusion, aiming to democratize access to financial resources, and Innovation, focusing on cutting-edge fintech solutions for secure, fast transactions.
Transparency and Customer-Centricity guide the company’s ethical and service standards, ensuring trust and tailored solutions. Silverbird is committed to empowering underbanked businesses, laying the groundwork for a more equitable financial future, and contributing to global economic growth.
Innovative Technologies and Strategies to Bridge the Financial Gap
Silverbird employs a blend of cutting-edge technologies to serve the underbanked effectively. Machine learning algorithms streamline digital onboarding, eliminating the need for physical branch visits. Blockchain technology facilitates multi-currency virtual accounts, simplifying international transactions.
Real-time processing enables instant cross-border transfers, while big data analytics provide alternative credit scoring models. Automated compliance is ensured through AI-based monitoring, and a mobile-first approach allows convenient on-the-go finance management.
By leveraging these tools, Silverbird sets new industry standards and extends financial inclusivity.
What Solutions Does Silverbird Provide for Businesses
Collaborating with Silverbird offers a transformative experience for SMEs, especially those that have been traditionally underbanked. By streamlining the onboarding process and offering multi-currency accounts, Silverbird removes financial barriers, freeing businesses to concentrate on expansion.
The platform’s rapid international transfers revolutionize cash flow, making global operations more accessible. Moreover, the platform’s reach extends to nearly every country, supporting multi-currency transactions across over 40 regions.
Silverbird not only empowers businesses but also sets an example for the fintech industry, showing the untapped potential in serving the SME sector. Companies can effortlessly set up a Silverbird profile to both receive and make international payments, subject to meeting specific regulatory requirements that Silverbird helps navigate.