A measly 5.6 per cent of fintech CEOs are women. Two-thirds of local businesses are locked out of the financing they need to digitise. Among the ASEAN countries, Malaysians are the most anxious about finances.

These are the statistics that the digital economy will never share with you.

Beneath the fast-paced whirlwind of the digitalisation movement, there is much to be done to close the gap between these underserved segments and financial technology — despite the fact that these are the groups that need financing the most.

As long as this gap remains unabridged, fintech will continue to limit its own growth and worse: fall short of transforming the financial industry in the many ways that it is uniquely positioned to do.

My work at Incite Foodtech Group (IFG), which revolves around diversification and equitable access, is built off the very belief that technology’s true potential lies in elevating underserved segments. By virtue of data and ecosystems, fintech is poised to open up new and unique opportunities that traditional financing may not conventionally provide.

But how do we ensure we are meeting the correct needs?

By critically analysing live transactional/retail data from key business verticals and using them as guiding benchmarks to create avenues of access to financial services.

Enabling the underserved to thrive

Small and medium-sized enterprises (SMEs) account for 97 per cent of all businesses in Southeast Asia, which makes it all the more alarming that such a large proportion of them are unable to access financing as and when they need it most.

Due to their smaller operational scale and a common lack of credit history, SME owners are often deprioritised when it comes to obtaining loans. Not only does this make it difficult for them to start building positive credit history, but it also forces them to fall back on physical cash — which comes with its fair share of limitations, namely security risks and reducing the feasibility of paying off large amounts at one go.

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Fintech players have a crucial role to play in accommodating SMEs’ pressing financing needs: identifying, fractionalising, and downsizing certain key financial services, such as small business loans or micro-investment products. That way, these once ‘big league’ avenues can be made more accessible to those who lack access to conventional banking services.

More than that, this is a game-changer for the way small businesses approach and are evaluated for short-term financing like loans. Rather than relying on big-picture statistics like credit scores, SMEs will now instead be able to make use of data like their daily transaction history or app usage — data that is capable of scaling to match the business size and is a far more accurate assessment of a small business’ financial standing.

As fintech continues to find innovative ways to facilitate growth for small enterprises and improve individual financial well-being across the board, the level of complexity surrounding this technology has also increased dramatically in recent years. It’s understandable that decision-makers may find it difficult to keep up with the torrent of new information every day; this makes it all the more important that we take great care not to leave businesses behind in our drive forward.

Education and transparency are key parts of this effort. In providing critical insights that guide SMEs to better understand the industry, their increased level of awareness and knowledge will translate into greater adoption of fintech as a modern tool — not to mention spearheading better accessibility. Ultimately, this largely removes the burden of knowledge off payment decision-makers and makes it less onerous for them to manage overall.

Creating a comprehensive, unified retail tech ecosystem can go a long way towards driving the potential of underserved segments through embedded financial technology.

At IFG, we have identified four divisions of key business verticals: the consumer sector (F&B, grocers and convenience stores, pharmacies, electronics); retail marketing solutions (user activation, redemption programmes, merchant partnerships); retail tech solutions (point-of-sale, data analytics, customer relationship management); and fintech services (digital lending, equity crowdfunding, venture capital).

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As the ecosystem is well-integrated into essential services and key operational retail elements, it is self-sustaining, scalable, and resilient — ensuring that, even in times of crisis or instability, it continues to safely champion financial accessibility for the underserved.

Women stepping up in fintech

In positioning themselves as diverse and inclusive spaces, fintech and retail tech must also reflect the diversity it claims to represent. As a woman navigating this industry myself, I feel firsthand the importance of increasing the visibility and representation of female leaders in the world of tech.

With women at the helm of more departments, companies, and initiatives in tech, this opens up a world of opportunities for these women to then inspire and lead other women in turn. Beyond creating a positive cycle of empowerment in the industry, this will spark affirmative conversations and action about women stepping up to drive fintech forward.

Accelerator programmes that take into consideration the nuances of tech for women, such as She Loves Tech Malaysia, are also a gateway to normalising women as catalysts for greater change. As a community challenging the status quo in an industry as dynamic as technology, we bring with us a wealth of diverse perspectives that can translate into more creative, more sustainable growth.

Gender equality in tech is not just about having more women in the trade; it’s also about finding constructive ways for men to support women in the fintech space. That’s why it’s high time that businesses and financiers stop viewing the world through a gendered lens and rather embrace the inclusivity and innovation at the very heart of fintech itself.

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