Financial Inclusion

Opinion piece by:
Michael Yeoh (CDxO)
Bangko Pangasinan – A Rural Bank, Inc.

Financial Inclusion?

What does it mean in the eyes of Gen Z and Millennials…………….

Cryptocurrency, NFT (Non Fungible tokens), trading and investment apps, and the metaverse popularity including crypto mining mobile community structured games have all gained tremendous popularity in emerging economies and are none more prevalent than in the ASEAN region where the total population growth is expected to hit 700 million by 2026, Millennial will account for 75% of the total ASEAN population at 450 million strong by 2030. This is only 8 years.

This will mean that these generational groups will inherit the largest wealth transfer over the next decade making how they think and what they prefer in terms of managing their wealth ever so important from financial inclusion perspective and inherently valuable in predicting future trends and prescribing what will be the most relevant technologies to be adopted to serve this influential financial consumer groups for the next generation.

For more information about cryptocurrency, NFT, metaverse, trading apps, and more please visit the links below to dive deeper:

Further Reading:


The pandemic has accelerated the pace of adoption of these new channels of connecting to the financial ecosystem and due to the herd mentality fueled by capitalistic nature of most central governments around the globe with a couple of exceptions it is inevitable that these newer technologies and the modern form of currency and wealth building tools holds more promise and decentralized access for the more innovative out of the box approach adopted by most Gen Z and the millennial demographics.

The world now is currently in the frugal decade as it should be after more than 14 years of money printing and cheap access to capital since the Great Recession of 2008 and the massive injection of stimulus money into the financial system to defend the market over the first 2 years of the pandemic to prevent an economic collapse the world over.

The frugal decade is inevitable as it is cyclical and what is abnormal this time round is that the frugal decade was manufactured by the simplistic nature of the central banks pressured by central government for quick fixes for the largest economies of the world to continue chugging along at the expense of growing household and corporate debt to spiral and spending on non value creating assets and excesses. Invest in properties and an inflation hedge and wealth creation for rental income.

Such economic cycles are common and historical data clearly supports it like clockwork. With the negativity aside, the famous saying of “What goes up must come down”, and the same is true for the opposite. Yes! We are down world markets over but it is the best time to save and/or to invest if you know how to.

The prescribed strategy to navigate the current economic landscape of high inflation perpetuated by making access to cheap capital for far too long and accelerated further with inefficient allocation of capital in the developed economies is to live within your means.

Do practice a Zen level of financial discipline and SAVE portion of your income (30%) and develop a healthy credit score with a local bank that can provide such services and supports alternate credit scoring to support the younger generation to develop businesses in the GIG ECONOMY  which comprises of vocations and job description which never existed before.

In changing times, business models will have to adapt to change and in the digital age where all business model must incorporate a digital element to be relevant.

A hybrid customer journey strategy especially for a country like the Philippines is the better approach to provide easy access to credit and facilitate the GIG economy of the next generation of digital entrepreneurs whom are apt in navigating the digital world and provide value add in their business model.

What is a GIG economy and who are the participants in it:

What Is an Example of a Gig Economy?

Examples of a gig economy are those jobs that individuals discover and access through online platforms that list such jobs. These jobs are often one-time or short-term contract jobs. These include driving for a ride-sharing service, painting someone’s house, freelance work, coaching, fitness training, and tutoring. The job is exchanged for cash and there are no other benefits, such as health insurance.

What Are the Benefits of the Gig Economy?

The gig economy has many benefits for both the employee and employer. An employer has access to a wide range of talent that they can hire. If the talent proves to be less than acceptable, there is no contract to keep the employee on or issues of letting them go. In addition, in a time when it has become difficult to attract full-time workers, employers can hire from the gig economy. In addition, hiring gig workers can be more affordable as companies don’t have to pay for health insurance or other benefits. For employees, the gig economy’s benefits include having the option to do multiple jobs, work from anywhere depending on the specific job, freedom, and flexibility in their daily routine.

Is the Gig Economy Worth It?

To the individuals working in the gig economy, it is worth it. Studies show that 79% of individuals who work in the gig economy are more satisfied than when they were working traditional jobs.

Banks of today must ensure that they will facilitate these young modern day entrepreneurial warriors with alternate credit scoring which will include considering value added metrics of health, social and behavioral scoring data points instead of solely relying on historical and transaction data points only.

In order to be truly propagating financial inclusion with value added financial education information, banks of the millennial must WALK the TALK.

It is not just providing the digital means to gain access but more importantly, to provide the know how and information which will help the next generation to create and preserve wealth in a meaningful and sustainable way.

Link: Psychology of finance and investing.
Link: Changing World Order

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