What does it mean to be “unbanked”?

Learn what does it mean to be unbanked? Despite the advanced technology we take for granted in our daily lives, traditional banking still relies heavily on outdated methods when it comes to onboarding new customers.

Asdra

Despite the advanced technology we take for granted in our daily lives, traditional banking still relies heavily on outdated methods when it comes to onboarding new customers. Banks still use multiple forms and paper files, relying too heavily on credit-bureau data that is considered archaic by today’s standards — a process that creates an unhappy user experience. Without access to the resources that banks and other financial institutions can provide, 1.7 billion unbanked people have few options for independently managing their finances.

What is the term “unbanked”?

The term “unbanked” refers to a diverse group of people who do not have banks or credit unions for their financial transactions, and nearly half live in just seven countries: China, India, Indonesia, Pakistan, Nigeria, Bangladesh, and Mexico. The most common groups of unbanked people include low-income households (with little education), female-headed households (mostly young adults), undocumented immigrants/refugees.

Why do they remain unbanked?

There are many reasons why people remain unbanked, and these can be a combination of the following: poor credit history or unresolved issues from a previous banking relationship, limited income, language barriers that make it difficult to navigate complicated forms that require certain information to open an account.

Reaching the unbanked matters more than ever

The number of unbanked people will still be 1.7 billion in 2021, but the number of people with a mobile phone and internet will increase. This means that people will only need their phones to access financial services, just as people who have bank accounts do every day. Instead of using today’s digital technologies to access banking services through existing cash transactions, the future holds promising prospects as everyone has at least one phone, which means we no longer have to worry about carrying excessive amounts of cash or restrictions on financial services.

With the mission to “Banking the UnbankedAsdra is developing solutions that are more advanced than the traditional banking system. Asdra has been developed with the current bureaucracy, onboarding process, account costs, and the elimination of the problem of distance in mind.

Our proposition is simple: to help people who are less fortunate grow by helping them send their hard-earned money home through the internet and blockchain technology.

To learn more about our technology, Asdra Move, the Asdra Protocol, Asdra Utility Token that binds the ecosystem, please visit asdra.com