According to the World Economic Forum, we could face the greatest rise in inequality since records began, as the COVID-19 pandemic increases economic inequality everywhere and reverses the progress that has already been made. It is now imperative to take action to achieve the Sustainable Development Goals in order to have a prosperous global future. The United Nations has said that one of the key measures to achieving the SDGs is to reduce inequalities and ensure no one is left behind. Inequalities exist in different forms based on income, sex, age, disability, sexual orientation, race, class, ethnicity, religion and opportunity.
SDG 10 aims to reduce inequalities within and among countries, however there are many challenges to overcome in face of the COVID-19 global pandemic that has already reversed some of the progress made since the financial crisis. The IMF stated that the impacts of COVID-19 can already be seen in numbers with more than 3.1 million deaths and rising, 120 million people pushed into extreme poverty and a significant global recession. Vulnerable groups, emerging markets and developing countries are among those who have been most affected by increasing inequalities. Economically, there has been a significant increase in global unemployment.
Source: Credit Suisse
AgAu aims to face this challenge and contribute to the Sustainable Development Goal 10, by achieving digital financial inclusion for all. Digital financial inclusion implicates giving unbanked and underserved populations access to cost-saving, affordable and sustainable digital financial services, and products.
The World Bank affirms that financial services provided through mobile phones increase access to finances and are an essential tool to contribute and overcome the barriers of financial services accessibility, mainly in a suitable environment. Digital financial inclusion combats poverty and inequalities by “opening blocked advancement opportunities for disadvantaged segments of the population”. In developing countries, 8 out of 10 people own a mobile phone, which means if available digital products and services can easily be obtained by the population. As Fintech is a great driver of financial inclusion, AgAu aims to provide emerging and developing economies with financial services that will help reduce income inequality.
Digital financial inclusion is a powerful equalizing force, contributing with new tools to boost the incomes of people facing economic issues with innovative solutions. It can improve financial education, resilience, and access to new economic and social opportunities. Also, have influences on health management, investment in education, businesses, and increase security. Digital financial inclusion provides solutions such as lower costs of remittances with further digitalization in 3-5% on average, lifting 30 million people out of poverty. It brings social inclusion for all and opportunities that otherwise, these countries would not have access to.
Digital inclusion and financial stability are intrinsic to AgAu’s core values. We envision a world where each and every person has direct ownership of their assets without relying on financial institutions or intermediaries. AgAu’s border-less and permission-less system allows to create a more inclusive financial ecosystem that will enhance economic development and enable the accomplishment of other sustainable development goals in the most vulnerable regions of the world.
To learn more about AgAu and its contributions to the Sustainable Development Goals, click here.
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