Algbra is a “global digital program” for the “unbanked and underserved.” Algbra is bridging the gap in financial inclusion by bringing financial security to developing countries. The emergence of cryptocurrency, artificial intelligence and blockchain technology has spawned endless opportunities within the financial industry. Although these accomplishments are impressive, a shocking 1.7 billion people worldwide are still without access to bank accounts. Banking services offer a convenient and secure money management method, a luxury unattainable for many of the world’s impoverished. Millions of people in developing markets are excluded from the financial system due to “insufficient income levels and market discrimination.” Exclusion from financial services prevents an accumulation of savings, investable funds and asset growth. New World Group vows to bridge the financial inclusion gap in developing countries with the innovative global digital platform, Algbra.
The Algbra Fintech Platform
Algbra is the new London-based fintech platform designed to create a multi-faceted, fair and viable banking experience that fulfills the needs of low-income consumers. The company raised £3.75 million in funds for the Algbra platform, with the aim of educating and uplifting underserved and minority populations so that people can move toward financial freedom.
Algbra is also the first platform of its kind to offer services in consideration of faith-based values. This is a more appealing option for those following the Islamic faith, an unbanked demographic of nearly 800 million people. Some of the products offered by Algbra include “current accounts, foreign exchange, remittances and rewards, with lending products to follow shortly thereafter.”
Algbra’s Impact on Global Poverty
In a study involving 35 countries in sub-Saharan Africa, researchers looked at the impact of financial inclusion on poverty levels among low-income households. Using data from 2011, it was concluded that financial inclusion significantly decreased poverty in sub-Saharan Africa by “providing net wealth and larger welfare benefits” for impoverished people.
On May 19, 2021, Algbra announced its partnership with the Patchwork Foundation, a British organization dedicated to advocating for underprivileged and minority communities to partake in issues of democracy and civil society. Through this partnership, Algbra and the Patchwork Foundation will empower promising young leaders with financial literacy skills and other essential skills. These skills will help the youth become informed policymakers capable of establishing practices that promote social and economic inclusion.
It is important for Muslim women to have a share in financial resources and the opportunity to participate in society’s advancement, all while adhering to Islamic teachings. This is instrumental to economic prosperity for developing countries with large Muslim populations.
However, the World Bank found that the Middle East and North Africa, which are predominantly Muslim regions, have the most significant gender gap in bank account ownership. In these regions, a whole 65% of women are without a bank account compared to 48% of men. Zeiad Idris, CEO of Algbra, believes empowering women by facilitating access to financial services is instrumental to increased economic growth.
How Algbra is Bridging the Gap
The financial industry lacks services that meet the faith-based needs of consumers. As a result, many Muslims limit their usage of financial services. A 2018 Thomson Reuters report indicates that religious considerations prohibited 34% of Afghan individuals and 27% of people in Iraq and Tunisia from utilizing financial services. However in Muslim-majority nations like Jordan, providing Shariah-compliant lending products (loans aligned with religious principles) raised application rates from 18% to 22%, according to a study by Professor Dean Karlan of Yale University.
Shariah compliance prohibits profiting from items or services with the potential to cause harm to people or the environment. Additionally, investors must avoid enterprises that deal with “weapons, alcohol and gambling.” Algbra provides solutions for Muslim consumers who seek Shariah-compliant banking services and solutions. The solutions are also beneficial for environmentally conscientious consumers who are mindful of financial imprints.
The Future of the Financial Industry
Adam Sadiq, CEO of New World Group, explains that a significant amount of people in impoverished nations “face financial exclusion because they cannot open an account at a traditional brick and mortar bank. As a result, they are unable to enjoy the opportunities made possible by economic growth, and in many cases, remain stuck in the poverty trap.” Algbra is bridging the gap in financial inclusion as the latest financial technology innovation aimed at resolving these difficulties through faith-based and inclusive banking services.
– Tiara Tyson