KYC in Africa
KYC in Africa

Role of Security in Promoting Financial Inclusion

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In Africa, the promotion of financial inclusion has been fueled by the widespread adoption of financial technologies, notably mobile banking, and mobile money, alongside emerging innovations like artificial intelligence and distributed ledgers. This drive is especially pronounced in sub-Saharan Africa, where approximately 400 million people remain financially underserved or unserved. Technologies such as Kenya’s MPESA have emerged as powerful tools for poverty reduction, offering low-income households access to affordable and convenient financial services.

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Statistics of underserved in Sub-saharan Africa

The continent leads the world in mobile money adoption, with mobile money accounts facilitating formal savings, borrowing, digital payments, remittances, and emergency funds. This surge in digital financial services has sparked a wave of innovation in the fintech sector, with over 2,000 startups focusing on financial technology between 2020 and 2021 alone. However, despite these advancements, significant challenges persist.

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Financial technology between 2020 and 2021

Consumer adoption of digital financial services is hindered by factors such as limited digital literacy and uneven access to mobile phones and the Internet, particularly in rural areas. The introduction of digital services has also opened new avenues for criminal activity, with cyberattacks targeting financial sector organizations, telecommunications companies, and government agencies. Africa loses approximately $4 billion annually to cybercrime, significantly impacting economic growth.

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Annual Losses to Cybercrime

Prembly recognizes the critical role of security in fostering financial inclusion. Our flagship product, IdentityRadar, is trusted by top financial institutions globally to swiftly assess risks associated with individuals during the onboarding process, ensuring a secure customer experience. IdentityRadar simplifies compliance with KYC and AML requirements, offering real-time monitoring capabilities to detect and prevent fraudulent activities.

Navigating cybersecurity regulations poses an additional challenge for MSMEs, often burdened by regulatory frameworks designed for larger firms. Prembly’s IdentityRadar streamlines compliance processes, safeguarding businesses and consumers alike. Leveraging machine learning, we combat cyber threats effectively, with our global reach spanning over 100 countries.

However, promoting financial inclusion requires addressing digital literacy and capacity constraints, especially among vulnerable populations. Prembly advocates for stronger consumer protection practices and regulations while raising awareness of cyber risks and fostering resilience.

As incidents of cybercrime persist, proactive cybersecurity measures are paramount. Prembly remains committed to championing financial inclusion through secure solutions, forging a future where trust, security, and opportunity are accessible across emerging markets and beyond.

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