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Digital identity: the key to global financial inclusion

Digital identity: the key to global financial inclusion

In it accelerated and interconnected world in which we live today, the access to financial services became more than just a convenience: it is a fundamental need for people and communities around the world. Although financial inclusion is a necessary goal, it faces numerous obstacles, especially in the low and middle income countries.

In recent years, with the appearance of digital identity solutionsthe panorama of the financial inclusion was reconfigured, bringing with it opportunities for those who for a long time were excluded of the traditional financial system.

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Depositphotos

The tools in the fight for financial inclusion They are slowly revolutionizing the way we access financial services. This transformation, driven largely by the technological advancesis already showing significant progress in the empowerment of communities and people around the world.

Inclusion ensures that everyone, regardless of socioeconomic background, has access to essential services: without these services, the vulnerability to the financial instabilitymaking it more difficult to escape the cycle of poverty. This is where the digital identity as a factor of change.

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This online representation, which can operate through the biometricssmartphone apps or other innovative solutions, provides a secure and convenient way for people to prove they are real on the internet. The great advantage of this identification is that it can help fill a gap, empowering people by granting them access to banking servicesfacilitating transactions and building a financial history that can open many doors.

Historically, many barriers excluded people from accessing financial services. These obstacles include distance to physical banksthe lack of documentation or even the costs associated with maintenance of bank accounts traditional. The digital identity break up with this status quooffering a cost effective and effective solution which has the potential to reduce costs and increase efficiency in customer onboarding.

One of the crucial aspects of any financial system is the trust and the security. Technologies are designed with the securityincorporating features such as proof of humanity, cryptography and blockchain technologies to protect sensitive user information. And as these technologies become more widespread, the public trust in digital financial services.

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Although the path to global financial inclusion is far from over, digital identity stands out as a powerful facilitator of progress. By removing traditional barriers and improve security and trust in financial transactions, it also promotes economic growth. It is not only a facilitator of financial inclusion, but a step towards a more equitable world. It is a powerful tool that, used responsibly, can promote a inclusive economic growth and ensure that no one is left behind in the digital age.

As we move down this path, we must ensure that the technology serve as a positive force and contribute to the creation of a more inclusive world for all.

By Martín Mazza, Regional General Manager of Worldcoin in Latin America.-

Source: Ambito

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