When a person does not have access to the conventional financial system, they are known as unbanked. According to figures from the Federal Deposit Insurance Corporation (FDIC), there are about 1,000 unbanked people in the world. two billion people that classify in that group.
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In this regard, digital wallets have played an important role in promoting financial inclusion, while promoting the creation of different types of financial clients: the underbanked, the low-banked and the cash-by-choice consumers.
This last group, specifically, is made up of those people who may have access to a bank account, but they choose to use it as little as possible. A behavior that is usually influenced by the fact that they do not like banks or prefer to protect the privacy of their expenses, income and financial transactions.
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Using cash by choice
Other reasons that motivate people who opt for this use include keeping their money in cash and out of financial institutions. gives you direct access and full control of your assets.
In addition, when they choose to use cash only, they can physically see and handle their money, which encourages financial responsibility. This also adds convenience and speed to managing this resource, avoiding blocked cards, administrative procedures, passwords, etc.
Some also opt for privacy. Many consumers cite security from data and identity theft as a driving factor in choosing cash, as well as freedom from prying eyes, state control, inflation and usury.
Colombian pesos.
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Alternatives for these consumers
There are proposals that provide solutions for these consumers. This white space for banks, merchants and governments is being exploited by new services that would allow for one-time, lower-cost transactions. Some examples of this include:
– Bitcoin Support: According to Tania Lea, director of Azteco, “Bitcoin provides many of the benefits that ‘cash by choice’ consumers seek, primarily privacy and immediacy.”
– Reverse ATMs: This type of tool is becoming increasingly popular, as they accept cash in exchange for gift cards (which are anonymous). They are excellent for everyday transactions.
– Prepaid electronic bank cards: These work the same as gift cards, but could handle larger amounts, allowing people to pay for a variety of transactions.
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