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How Fintech is Fuelling Economic Growth

Economic prosperity and growth are required for the progress and development of a nation. Financial inclusion plays a significant role. Financial gain is referred to as the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. This helps a country to thrive and reach phenomenal heights.

A constructive way to achieve exceptional economic growth and prosperity is to make use of the novel innovation of fintech. Financial technology, or fintech for short, is used to describe new technology that improves, automates and even reimagines the distribution and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms for use on computers and, increasingly, smartphones.

This technology helps the efficient working of companies through fast and easy financial transactions. Fintech has made exceptional gains for the economy. Technological access to financial services is vital for creating and accelerating sustainable economic growth. It helps create employment opportunities that are beneficial not only to an individual’s personal and social development but also to the economy.

A prominent benefit of financial technology is for small businesses and startups. It helps young entrepreneurs achieve cost-effective and efficient access to payment systems. This thereby helps to achieve a productive customer relationship management and service, building a valuable customer relationship. Therefore, the customers chose that particular company as their go-to place, which results in business growth, hence the economy’s flourishment.

“Companies across sectors from ride-hailing, logistics, agriculture (agritech), and healthcare (healthtech), to fashion, hospitality, and insurance (insurtech) are being impacted by fintech solutions with many companies looking to integrate and or leverage these technologies and platforms to catalyze growth,” says Geoffery Prentice, co-founder of Oriente, a Hong Kong-headquartered financial services and technology company.

The modern and futuristic fintech increases economic opportunities, thereby increasing the financial growth of the country. The efficient management of cash flow reduces scams and frauds. It also strengthens resilience during downturns. Additionally, one exceptional gain of fintech is that growing economy through this novel innovation is helping nations to make their way out of poverty. The standard of living is improving. A worthwhile financial balance is created in society. 

Tanvir A Mishuk is a strong example of someone playing a phenomenal role in contributing to economic growth through fintech. The fintech entrepreneur is the founder and managing director of Nagad, the fastest-growing fintech company globally and the second-largest in Bangladesh by number of customers. This company is a dynamic and secure digital financial service that facilitates customers’ daily financial transaction needs like domestic remittances, digital money transfers, mobile recharge and digital payments.

Aiming to lead the country’s booming Digital Financial Service (DFS) revolution, Nagad is a venture by the Bangladesh Post Office that facilitates people’s day-to-day financial transaction needs. The Nagad service is operated by Third Wave Technologies Limited (TWTL). The core philosophy of the service is to fuel possibilities.

According to the World Bank’s Global Findex 2017, only 50% of Bangladeshis had mobile banking and financial institution accounts as of 2017, of which only 21.2% have mobile money accounts. This reach leaves a large population of unbanked people who require reliable services to assist their financial needs. With a host of essential services such as cash in/out, P2P money transfers and mobile top-ups, the purpose of Nagad is to enhance the lives of people by empowering them with financial flexibility. Nagad sets itself apart by ensuring meticulous customer service. Through its facilities, the company contributes to financial inclusion and socioeconomic development of the country.

Tanvir is a dynamic serial entrepreneur who is also the founder and managing director of Telekom Asia and Finclusion Ventures Pte. Ltd. Additonally, he has played a dynamic and transformative role as the Director and former CEO of Sigma Telecom. Tanvir is an experienced investor and philanthropist who has implemented meaningful technology solutions that have revolutionized Bangladesh’s socioeconomic structure. Mishuk aspires to propel Bangladesh into the era of Digital Banking and cashless transactions in the coming years.

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