Economic incentives and outdated systems excluded millions from banking.
There are two main reasons, focusing on economic incentives. It was really difficult for banks to make money off consumers with low-value, high-frequency transactions. Banks perceived them as higher credit risk because they used backward-looking systems instead of monitoring real-time cash flow. Vulnerable populations are also more susceptible to fraud and scams, creating high costs for dispute processing. The economic incentives made it very difficult for incumbent institutions to effectively serve this large population. Technology was needed to solve this.
— Disrupting Traditional Banking, with Colin Walsh · The Keynote on AI