Till now, developing countries have not been able to overcome their internal problems with volatility and high levels of environmental uncertainty. Some of them are still characterized by low trust in traditional banking systems and currencies. But people still need proven financial tools to manage their funds, creating a blank space that could be filled with fintechs. Why fintech? Fintech companies are more agile, and in most cases, they work based on digital assets like cryptocurrencies. This is especially important in regions where inflation depreciates national currencies and pushes mass crypto adoption.  In this article, let’s delve deeper into the problems of emerging markets (EM) and see how fintech can help their financial systems. The main challenges of emerging markets As I mentioned in the introduction, developing countries can usually be described as regions with high uncertainty levels. Such a description refers both to problems in the political system and the national economy. Due to underdevelopment, there can be a high level of corruption, unfair elections, etc. These problems decrease people’s trust in all regulatory bodies, including the financial system. Such major issues may entail major problems in the economy, for example, currency depreciation, high inflation, the slowdown in production, etc. A bright illustration of the emerging state with a ton of economic problems is Argentina, the second country with the highest inflation rate ranking. The inflation is peaking up to 250% in this region. Emerging markets also cannot boast of an educated population. They suffer from a lack of financial literacy and an inability to allocate incomes properly. The majority of them do not understand sophisticated financial tools or digital assets. Nevertheless, sometimes it is explained by low incomes: emerging markets sometimes match the lower middle income strata. However, this is a problem from two sides. Sometimes, people do not know much about the financial system because it is simply underdeveloped. As proof of my words, there is the World Bank report where researchers highlight the same: nearly 30% of adults do not have financial accounts either because the maintenance costs are high or the institutions are too far away. How can fintech companies improve the situation? First, fintech companies usually provide their services online without the need to contact any financial institutions. Fintech can also afford to provide a service that is usually free of charge. This is thanks to low costs of keeping an online business. So, all in all, their products can be considered more affordable and accessible. To overcome political challenges, fintech also thoroughly considers the regulatory environment. Each market has its own set of rules and nuances that fintech companies have to adapt to or help to transform for better. Many fintech companies are working with crypto. Cryptocurrencies can be a real saver for people living in developed countries as they are a more stable payment method. With, for example, stablecoins, developed countries' citizens should not worry about high inflation decreasing their assets. Additionally, crypto payments are an excellent method to be engaged in global commerce as crypto deletes borders and facilitates international payments. Actually, this also inspires marketplaces to operate in emerging markets, which creates a positive effect for the whole region’s development. Fintech companies also care about raising financial literacy. Sometimes before offering a product, they educate the potential user on its pros and cons and the ways on how to use it. This is a win-win strategy, as companies increase their clientele and population increase their knowledge of finance. As financing is a problem, fintechs can also have a hand in regions’ wealth increase. They grant loans on more affordable terms and have fewer requirements during credit scoring, compared to banks. Not only theory but also reality In fact, there are indeed many companies in the world today that operate quite successfully in emerging markets. One such example is 8B World. It is a fintech platform that provides cross-border payment solutions for emerging markets such as Africa and Asia. The project combines local payment systems into a single platform. For anyone willing to access these markets or for locals seeking financial services, it becomes much easier and more convenient. 8B World integrates popular payment methods such as mobile wallets and complies with local regulations. This makes the platform also accessible for small and medium-sized businesses that want to work in new markets. The success stories of companies such as M-Pesa, Paytm, Nubank, and Flutterwave serve as proof that even in such regions, the fintech sector has huge potential. These companies have transformed access to financial services in their markets by offering them to the general public. M-Pesa, for example, has become a key player in mobile payments in East Africa, Paytm has radically changed the approach to digital payments in India, and Nubank in Brazil and Flutterwave in Africa have made financial services simpler and more convenient. Such examples are truly inspiring. They highlight one more time how fintech platforms can improve access to financial services in regions with limited banking infrastructure. The future in emerging markets belongs to fintech Taking into account all the benefits of fintech in EM, it becomes clear that their future with fintechs can be bright and promising. Developing countries are like an untilled field, where one can harvest a lot. They not only extend the offer of financial tools in these regions but also bring EM to the global standards and include them in the global system. For example, In Southeast Asia, countries like Thailand and Indonesia have developed their payment systems, but they must still connect to the global ecosystem to remain competitive. Till now, developing countries have not been able to overcome their internal problems with volatility and high levels of environmental uncertainty. Some of them are still characterized by low trust in traditional banking systems and currencies. But people still need proven financial tools to manage their funds, creating a blank space that could be filled with fintechs. Till now, developing countries have not been able to overcome their internal problems with volatility and high levels of environmental uncertainty. Some of them are still characterized by low trust in traditional banking systems and currencies. But people still need proven financial tools to manage their funds, creating a blank space that could be filled with fintechs. Why fintech? Fintech companies are more agile, and in most cases, they work based on digital assets like cryptocurrencies. This is especially important in regions where inflation depreciates national currencies and pushes mass crypto adoption.  In this article, let’s delve deeper into the problems of emerging markets (EM) and see how fintech can help their financial systems. The main challenges of emerging markets The main challenges of emerging markets As I mentioned in the introduction, developing countries can usually be described as regions with high uncertainty levels. Such a description refers both to problems in the political system and the national economy. Due to underdevelopment, there can be a high level of corruption, unfair elections, etc. These problems decrease people’s trust in all regulatory bodies, including the financial system. Such major issues may entail major problems in the economy, for example, currency depreciation, high inflation, the slowdown in production, etc. A bright illustration of the emerging state with a ton of economic problems is Argentina, the second country with the highest inflation rate ranking. The inflation is peaking up to 250% in this region. 250% 250% Emerging markets also cannot boast of an educated population. They suffer from a lack of financial literacy and an inability to allocate incomes properly. The majority of them do not understand sophisticated financial tools or digital assets. Nevertheless, sometimes it is explained by low incomes: emerging markets sometimes match the lower middle income strata. lower middle income strata. lower middle income strata. However, this is a problem from two sides. Sometimes, people do not know much about the financial system because it is simply underdeveloped. As proof of my words, there is the World Bank report where researchers highlight the same: nearly 30% of adults do not have financial accounts either because the maintenance costs are high or the institutions are too far away. 30% 30% How can fintech companies improve the situation? How can fintech companies improve the situation? First, fintech companies usually provide their services online without the need to contact any financial institutions. Fintech can also afford to provide a service that is usually free of charge. This is thanks to low costs of keeping an online business. So, all in all, their products can be considered more affordable and accessible. To overcome political challenges, fintech also thoroughly considers the regulatory environment. Each market has its own set of rules and nuances that fintech companies have to adapt to or help to transform for better. Many fintech companies are working with crypto. Cryptocurrencies can be a real saver for people living in developed countries as they are a more stable payment method. With, for example, stablecoins, developed countries' citizens should not worry about high inflation decreasing their assets. Additionally, crypto payments are an excellent method to be engaged in global commerce as crypto deletes borders and facilitates international payments. Actually, this also inspires marketplaces to operate in emerging markets, which creates a positive effect for the whole region’s development. Fintech companies also care about raising financial literacy. Sometimes before offering a product, they educate the potential user on its pros and cons and the ways on how to use it. This is a win-win strategy, as companies increase their clientele and population increase their knowledge of finance. As financing is a problem, fintechs can also have a hand in regions’ wealth increase. They grant loans on more affordable terms and have fewer requirements during credit scoring, compared to banks. Not only theory but also reality Not only theory but also reality In fact, there are indeed many companies in the world today that operate quite successfully in emerging markets. One such example is 8B World. It is a fintech platform that provides cross-border payment solutions for emerging markets such as Africa and Asia. The project combines local payment systems into a single platform. For anyone willing to access these markets or for locals seeking financial services, it becomes much easier and more convenient. 8B World integrates popular payment methods such as mobile wallets and complies with local regulations. This makes the platform also accessible for small and medium-sized businesses that want to work in new markets. The success stories of companies such as M-Pesa, Paytm, Nubank, and Flutterwave serve as proof that even in such regions, the fintech sector has huge potential. These companies have transformed access to financial services in their markets by offering them to the general public. M-Pesa, for example, has become a key player in mobile payments in East Africa, Paytm has radically changed the approach to digital payments in India, and Nubank in Brazil and Flutterwave in Africa have made financial services simpler and more convenient. Such examples are truly inspiring. They highlight one more time how fintech platforms can improve access to financial services in regions with limited banking infrastructure. The future in emerging markets belongs to fintech The future in emerging markets belongs to fintech Taking into account all the benefits of fintech in EM, it becomes clear that their future with fintechs can be bright and promising. Developing countries are like an untilled field, where one can harvest a lot. They not only extend the offer of financial tools in these regions but also bring EM to the global standards and include them in the global system. For example, In Southeast Asia, countries like Thailand and Indonesia have developed their payment systems, but they must still connect to the global ecosystem to remain competitive.

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