The promise of fintechs in overcoming challenges to inclusive access to digital financial services (DFS) is becoming increasingly evident. Thanks to fintech solution providers, underserved customers now have improved access to financial systems through their mobile devices, enabling them to make and receive payments, pay bills, and access credit and insurance solutions. Digital transformation is no longer the sole domain of major digital conglomerates. Instead, new dynamic collaborations between fintech providers and various actors from the digital financial sector are delivering innovative solutions tailored to the unique needs of underserved communities.
Agile by nature, fintech companies are well positioned to respond effectively to the complex and multifaceted requirements of enabling financial inclusion, particularly in the last mile, where underserved and remote communities are often left behind. Barriers such as limited infrastructure, geographical isolation and profitability concerns have traditionally hindered investment by DFS providers. Yet, fintechs also face their own challenges, including scalability and regulatory constraints, which can impede their growth if the right partnerships are not formed. Partnerships not only provide access to larger markets but also foster innovation, allowing fintechs to adapt their services to meet specific local needs.
The fintech landscape is highly competitive, with fintechs striving to compete and differentiate themselves not only with new entrants but also with well-established providers. The most crucial element in their quest for success is having access to a broad customer base and developing a deep understanding of customers' digital needs through comprehensive needs analysis and data insights. Crafting tailored solutions based on this understanding is essential. Ultimately, it is crucial for fintechs to build trust and win customer loyalty if they are to establish a sustainable business model and a viable revenue stream.
Based on these fintech needs, postal networks represent one of the most important “fit for purpose” partnerships. With extensive infrastructure, deep community trust, and unparalleled access to remote and underserved areas, postal networks remain an underutilized opportunity for fintech partnerships. By leveraging postal networks’ extensive infrastructure and trusted customer relationships, fintechs can expand their outreach and enhance their impact. Postal networks offer access to a large group of loyal yet underserved postal customers with pressing digital access needs. Collaborating with postal operators and other ecosystem DFS actors provides fintechs with opportunities to address nationally visible financial inclusion mandates while fostering long-term, sustainable growth.
Additionally, such partnerships facilitate fintechs' access to special postal regulatory provisions or future postal DFS regulations that better advance national financial inclusion goals. Regulatory challenges are a significant barrier for many fintechs, and partnerships with established postal networks can help navigate through these complexities. With their extensive assets and central reach into remote rural communities, postal networks are ideal partners for fintech companies and ecosystem players to deliver innovative DFS solutions directly to the doorsteps of excluded women. By harnessing the trusted status of postal networks, fintechs can enhance customer engagement and expand their market presence.
Successful fintechs often rely on partnerships with organizations that offer the scale and reach necessary for sustainable growth. Visibility is key – fintechs gain recognition through their efforts to solve critical digital access challenges. However, regulatory hurdles can restrict their ability to operate independently, highlighting the importance of ecosystem partnerships. Such collaborations not only improve access to funding but also strengthen security, compliance and service quality. Building these capabilities is vital to fostering customer confidence and encouraging long-term adoption of fintech solutions.
The financial inclusion of women and girls is a key focus for postal networks and presents a substantial opportunity for economic transformation. In many emerging markets, women’s economic and digital empowerment lags significantly behind. Enabling women’s access to financial systems is crucial for advancing their financial inclusion and sustainable development. Fintechs are encouraged to design for and with women, ensuring that digital offerings are tailored to their specific needs, thereby promoting financial empowerment and resilience. Designing gender-sensitive financial services can drive the development of more inclusive economies and help reduce socio-economic inequalities.
Postal networks possess key assets to provide both financial and non-financial services to women, along with capacity-building initiatives in digital and financial literacy to support their financial inclusion. For instance, postal networks can play a crucial role in education and awareness for women through workshops, community outreach programmes and digital literacy campaigns. These initiatives can help women and other marginalized groups develop the confidence and skills required to engage effectively with digital financial platforms, and bridge knowledge gaps and empower women to make informed financial decisions. They contribute not only to individual empowerment but also to the broader economic growth of communities.
The UPU is committed to advancing financial inclusion for underserved postal customers by promoting relevant digital financial solutions and facilitating partnerships with fintechs and other ecosystem actors. Recently, the UPU launched a “Study on Post–fintech partnerships to overcome inequality through access to postal digital financial services”. This research report, based on both primary and secondary research, examines women’s digital access and explores the regulatory environment essential for fostering financial inclusion. The findings highlight the potential of innovative partnerships to drive positive change and contribute to global financial inclusion objectives.
Furthermore, the UPU promotes continued dialogue and knowledge exchange among stakeholders. By creating platforms for collaboration, the organization helps support fintechs and postal operators to share best practices, identify new opportunities and address common challenges. This approach is instrumental in fostering an inclusive digital economy that leaves no one behind.
This article first appeared in Union Postale Spring 2025.
