Geopolitical instability and the cost of living crisis raises questions about how financial services can help more people achieve financial security and businesses weather uncertain times. The IMF’s latest data on the economic implications of global fragmentation are concerning – deeper fragmentation, particularly in less developed countries, can be a harbinger for further instability and deeper economics woes for these economies, their people and businesses. We as business leaders must work together to push even harder to build a more stable international financial system. My hope is that if we do that we can help avoid the dire predictions of the IMF.
Monetary arrangements and capital flows among countries are governed by rules, mechanisms, and institutions that have developed over decades. In addition, a fragmented global payment system and financial regionalisation have placed emerging economies at greater risk due to the insufficient payment infrastructure. A rapidly changing world requires them to evolving and transform in order to promote financial stability and economic development. As a result, leaders around the world must ensure financial services are distributed equitably, with a view to improving resiliency and financial inclusion, as the provision of financial services is crucial to the creation of inclusive economic opportunities.
We in the financial services and financial technology industry must continue to design and build infrastructure that facilitates further integration of payment systems, banking services, responsible access to capital and investing. This includes making international payments more efficient, safer, and more inclusive by connecting public digital platforms and legacy systems within countries and across continents. This will help drive more inclusivity, not further fragmentation. This will help identify and scale promising innovations to maximise the positive impact to businesses and consumers in high-growth markets. Platforms like PayU that can act as a bridge between ecosystem players – global merchants, banks, and local consumers – will be crucial in this push for inclusivity, growth and further economic integration.
Mario Shiliashki, Chief Executive Officer at PayU Global Payments