Digital banking services provider Fidor has signed a memorandum of understanding (MoU) International Finance Corporation (IFC), a member of the World Bank, to expand digital banking services in Africa and Latin America.
Under the collaboration, both the entities will work together to improve financial inclusion in these two regions by identifying financial institutions and partners to launch or expand digital bank joint ventures.
Besides sharing knowledge on running a digital bank, the collaboration will also see Fidor providing its technology platform ‘Fidor Operating System’ (fOS) for API banking that can offer financial services cost-effectively.
Globally, around two billion working-age adults do not use formal financial services. Providing financial access will improve their daily living and help them to plan their financial goals.
By opening an account, they will also have the opportunity to utilise various other financial services such as credit and insurance.
Fidor founder and CEO Matthias Kröner said: “Having access to financial services can improve people’s everyday lives in emerging markets.
“However, the benefits of financial inclusion are not only limited to individuals, and can help emerging countries’ economic and social development, as well as playing a significant role in empowering people and societies.
“The MOU with IFC aims to roll out digital banks throughout emerging countries and give access to financial services in order to boost financial inclusion.”
With this MoU, Fidor will also work with IFC to launch other services in Africa and Latin America to help in reducing the financial inclusion gap.