Digital financial services have seen explosive growth over the last decade. From mobile wallets to integrated finance and open banking, the technical possibilities have expanded significantly. However, despite the increasing sophistication of applications, real constraints remain.
With Crowdfunding, we understand that the development of fintech often exceeds the environment it seeks to transform. Product roadmaps are accelerating, but user adoption remains uneven. In fast-growing regions, physical infrastructures and behavioral habits do not evolve at the same pace as digital ambitions. According to a recent report from the Bank for International Settlements, cashless payments per capita increased by 29% in 2023 in emerging markets, while cash withdrawals remained stable, highlighting the persistent role of cash in everyday transactions. This disparity is particularly evident when innovation meets inclusion. Although KYC automation, digital credit assessment, and real-time payments define the current landscape of fintech, large segments of the population continue to rely on cash and are only partially connected to digital networks. Bridging this gap is not only a product challenge — it is a matter of rethinking business models and understanding the behaviors that determine the actual use of financial systems. The next wave of fintech growth is likely to reside not in entirely new products but in seamless integration with existing environments.
Aligning Innovation with Access
In fintech, it is common to view progress as linear: improve an interface, simplify a process, then scale. But scaling does not happen in a vacuum. It depends on systems — economic, social, and physical — that enable people to adopt new services. While technology providers focus on scalability, user experience, and automation, many target users remain disconnected from digital platforms — by choice, necessity, or lack of access. Smartphone penetration, mobile data costs, trust in digital services, and even basic identification systems vary greatly from market to market. The result is a fundamental mismatch between the perception of fintech solutions and how users can realistically access them. This does not mean that fintechs have failed. On the contrary, the next phase of growth will require a deep understanding of the barriers between product and participation. True scaling will come not from adding a new feature but from integrating digital services into existing ecosystems, habits, and touchpoints that people already trust.
Rethinking Integration
The future success of fintech in emerging markets will depend on the ability of digital services to integrate into hybrid ecosystems — partly online, partly cash-based. Self-service kiosks, once seen as transitional, are re-emerging as cost-effective conduits in low-connectivity environments. By reducing dependence on smartphones, they allow users to deposit or withdraw funds, pay bills, and access digital platforms without owning a device or incurring high data costs. In regions where trust in applications remains low, a visible physical kiosk lends credibility that purely digital interfaces cannot match. Local agent networks — such as neighborhood shops, post offices, or telecommunications retailers — enable assisted integration and cash-in/cash-out services. These networks bridge the trust gap through face-to-face interactions, helping users navigate KYC procedures and build their confidence. In several markets, well-incentivized agents have increased onboarding rates by up to 50%, while significantly reducing customer acquisition costs. In each case, the goal is to reduce friction between cash and code — making digital finance an extension, rather than a total replacement, of daily routines.
A Broader Vision of Infrastructure
The main challenge is not to digitize everything immediately but to design for coexistence — accepting that cash-based economies and physical touchpoints will remain part of the financial ecosystem for years to come. This requires more adaptable systems: infrastructure that respects existing behaviors; interfaces that support low-data and low-trust environments; and products that do not assume continuous connectivity or seamless integration but instead offer alternative pathways to formal finance. To succeed, fintechs must adopt a hybrid model that harmonizes digital innovation with established physical pathways. Each market demands its own balance. Too often, solutions are imported wholesale, ignoring local dynamics. By designing systems that respect existing behaviors and environments, fintechs can turn promise into participation.
Building for Context
Fintech is often described as the convergence of finance and technology. Today, the critical convergence is between digital ambition and physical execution. A superior product means nothing if it cannot reach the right users, in the right context, at the right time. As fintech matures, the focus shifts from invention to integration.
The rapid growth of digital financial services over the past decade has transformed the global economic landscape, particularly in emerging markets. From mobile wallets to integrated finance and open banking, technical possibilities have matured significantly. However, despite the sophisticated evolution of applications, real constraints persist.
What are the challenges fintech face with existing infrastructures?
The development of fintech has often exceeded the frameworks of the environments they seek to transform. Product roadmaps are accelerating, but user adoption remains uneven. In fast-growing regions, platforms often encounter barriers as physical infrastructure and behavioral habits do not keep pace with digital ambition. According to a recent report from the Bank for International Settlements, cashless payments per capita in emerging markets increased by 29% in 2023, while cash withdrawals remained stable, highlighting the persistent role of cash in everyday transactions.
This gap is particularly visible at the intersection of innovation and inclusion. As KYC automation, digital credit assessment, and real-time payment define the current fintech landscape, large segments of the population continue to depend on cash and are only partially connected to digital networks.
How can fintech align innovation and access?
There is a trend in fintech to view progress as linear: build a better interface, streamline a process, then scale. But scaling does not occur in a vacuum. It depends on systems — economic, social, and physical — that enable people to adopt new services.
While focusing on scalability, user experience, and automation, many technology providers target users who remain disconnected from digital platforms — by choice, necessity, or lack of access. Smartphone penetration, mobile data costs, trust in digital services, and even basic identification systems vary significantly from market to market. The result is a fundamental mismatch between the perception of fintech solutions and how users can realistically access them.
This does not mean fintech has failed. It means the next phase of growth will require a deeper understanding of the barriers between product and participation. True scaling will come not from adding an additional feature but from integrating digital services into existing ecosystems.
What are effective integration models for fintech?
The future success of fintech in emerging markets depends on how digital services integrate into hybrid ecosystems — partly online, partly cash-based.
Self-service kiosks
Once considered transitional, self-service kiosks are re-emerging as economic conduits in low-connectivity environments. By reducing dependence on smartphones, they allow users to deposit or withdraw funds, pay bills, and access digital platforms without owning a device or incurring high data costs. In regions where trust in applications remains low, a visible physical kiosk provides a credibility that purely digital interfaces cannot match.
Agent networks
By relying on local agents — such as neighborhood grocers, post offices, or telecommunications retailers — fintech can offer assisted onboarding and cash deposit/withdrawal services. These networks bridge the trust gap through face-to-face interactions, helping users navigate KYC procedures and building trust. In several markets, well-incentivized agents have shown onboarding rate increases of up to 50%, while significantly reducing customer acquisition costs.
In every case, the goal is to reduce friction between cash and code — making digital finance an extension of daily routines rather than a total replacement.
Why is a hybrid approach crucial for fintech?
The central challenge is not to d digitalize everything immediately, but to design for coexistence — accepting that cash-based economies and physical touchpoints will continue to be part of the financial ecosystem for years to come. This calls for more adaptable systems: infrastructure that respects existing behaviors, interfaces that support low-data and low-trust environments, and products that do not assume continuous connectivity but offer alternative pathways to formal finance.
To succeed, fintech must adopt a hybrid model that harmonizes digital innovation with established physical pathways. Each market requires its own balance. Too often, solutions are imported wholesale, overlooking local dynamics. By designing systems that respect existing behaviors and environments, fintech can transform promise into participation.
How do financial infrastructures influence fintech adoption?
Financial infrastructure plays a critical role in the diffusion of fintech innovations. A deep understanding of this infrastructure is essential for navigating challenges and seizing opportunities. To learn more about financial infrastructure, check out this article Understanding Financial Infrastructure.
Economic, social, and physical systems form the foundation upon which fintech can build their solutions. For instance, in regions where traditional banking systems are underdeveloped, fintech must find alternative ways to integrate accessible and reliable financial services.
What are some success examples in fintech integration?
Companies like Apex Group demonstrate how successful integration can transform the financial sector. Recently, Apex Group takes a majority stake in Tokeny, illustrating how fintech can leverage advanced technologies to strengthen their market position.
Another example is Lia, which has transitioned from hype to the cornerstone of business operations. The article Lia goes from hype to the cornerstone of business operations shows how a deep understanding of physical infrastructure can propel a fintech towards sustainable success.
What strategies can help fintech overcome the limitations of physical infrastructure?
To overcome the limitations imposed by physical infrastructure, fintech must adopt innovative strategies. One approach is to combine digital technologies with accessible physical solutions like self-service kiosks and agent networks. Furthermore, building user trust through physical interactions can accelerate the adoption of digital services.
It is also crucial to address regulatory barriers and work collaboratively with local authorities to create an environment conducive to innovation while ensuring compliance and transaction security. Initiatives like spies on every street corner in the ruthless fintech industry illustrate the competitive challenges fintech must face to adapt and thrive.
How can digital innovation be integrated into existing ecosystems?
Integrating digital innovation into existing ecosystems requires a holistic approach that takes into account user behaviors, local needs, and technological capabilities. Fintech must develop flexible solutions that can adapt to the different economic and social realities of the markets they serve.
For example, by using self-service kiosks and agent networks, fintech can offer accessible financial services to those who are not yet digitally connected. Additionally, by collaborating with local partners, they can better understand and respond to the specific needs of each market.
What are the benefits of an integrated approach for fintech?
An integrated approach allows fintech to:
- Improve user adoption by making financial services more accessible and reliable.
- Build trust through in-person interactions and physical touchpoints.
- Reduce acquisition costs by using local agents to expand the customer base.
- Increase resilience to economic fluctuations and technological challenges.
- Foster financial inclusion by integrating segments of the population traditionally excluded from digital banking services.
This approach also helps create more sustainable solutions that meet the real needs of users, ensuring a more balanced and inclusive growth for the fintech sector.
