Partnering with Purpose: Banks, Financial Inclusion and EZO’s Collaborative Approach

EZO’s mission is to make financial accessibility a universal right. Ambitious as this project may seem, we wholeheartedly believe that every person—no matter their geographical location and income level—should be given the opportunity and the tools to work towards their financial empowerment.

Unequal access to financial services plagues our global community, keeping its more vulnerable strata in poverty through financial exclusion, while the wealthy who have access to banking products are able to leverage them to achieve higher levels of economic wellbeing. 

Strikingly, lack of income and insufficient funds is one the chief reasons behind financial exclusion. We believe that to fight it, affordable solutions making use of accessible technology must be created to reach people wherever they are.

EZO is up for this challenge. Our vision sets us apart within the industry in that we believe collaboration, rather than dismantlement of traditional institutions, is the way forward in bridging the gap in financial accessibility worldwide. 

For centuries, banks have played an important role for communities and economies. By joining forces and combining strengths, we believe fintech and banking can work towards a solution to the problem of financial exclusion.

The Traditional Role of Banks

Commercial Banks

Commercial banks are the institutions most people think of when they hear the word “bank.” They offer a range of services, including accepting deposits through savings and checking accounts and providing loans to individuals and businesses.

Beyond these functions, commercial banks play a vital role in the economy by facilitating the creation of capital, extending credit and ensuring liquidity in the financial system. They provide a safe place to deposit our funds and eventually grow our savings through earned interest.

Additionally, commercial banks are a critical part of the payment system, enabling secure and efficient transactions across vast networks of individuals, businesses and financial institutions both domestically and internationally. Mark Carney, the prime minister of Canada and former governor of the Bank of Canada and the Bank of England, likens its functioning to oxygen: “the payments system passes unnoticed unless disrupted”.

Central Banks

On the other hand, central banks are entities that regulate monetary policy within a country. They supervise inflation and adjust it by injecting money into circulation or alternatively reducing its supply. They also uphold commercial banks by acting as lender of last resort in case the banking system fails.

While there exists other kinds of banks—investment banks, development banks or cooperatives—we focus in the scope of this article and in our activities on commercial and central banks.

How Has This Translated Into Real World Impacts?

Banks have advanced financial inclusion by expanding their reach across diverse geographic and cultural regions, making financial products and services more accessible to underserved populations. Financial inclusion improves a country’s overall welfare by improving the life of the individuals that make up societies. Access to banking services enables individuals to improve their living standards by providing them with solutions for efficient fund management, encouraging savings and unlocking broader economic opportunities.

Commercial banks also stimulate innovation and job creation through the loans they provide, playing a vital role in driving economic development, through GDP growth for instance. By extending financial opportunities to individuals with modest incomes, they contribute to a more inclusive economy and foster resilient communities supported by a variety of industries.

On the other hand, central banks ensure their countries’ economic stability by managing inflation, regulating interest rates and overseeing overall monetary policy frameworks. Additionally, central banks help protect consumers through deposit insurance schemes and financial regulations that ensure the safety and stability of the banking system.

Yet, traditional banks stand to benefit from change. The banking system is far from perfect, and its shortcomings have real-world consequences—often disproportionately affecting certain segments of the global population. Unequal access to financial services, whether between countries with varying income levels or within marginalized communities and families, places a strain not only on the global financial system but also on the everyday lives of those impacted by financial exclusion.

Despite best efforts, commercial banks tend to concentrate lending in cities or to already well-off enterprises, leaving poor regions and individuals underserved. We have witnessed in the last years the closure of physical bank branches in lower-income communities within otherwise high-income countries like the United States or Canada.

There is also an imbalance between countries of the developing and the developed world in terms of access to physical banking infrastructure. The worldwide average in terms of bank branches per 100,000 adults is about 12 in 2023—a significant increase from previous years. An existing disparity is evident considering the United States boasts a whopping 27 bank branches per 100,000 adults, while Guinea only has a little under 3.

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From the banks’ perspective, opening and maintaining a physical branch in rural or remote areas costs more than any potential returns on that money. At EZO, we believe that while extending financial services in favour of inclusion across income levels and geographical locations may not be the most profitable, financial inclusion is a worthwhile endeavour in itself. More than a financial question, it is a human matter. Everyone, from Canada to Guinea, deserves to and should be awarded the same opportunities for growth and empowerment.

Much Needed Change

The transformative potential of technology has been widely recognized in recent years, especially as a catalyst for the much-needed evolution of the banking system. Mobile technology, in particular, holds promise in bridging the gap between banking services and underserved populations. Around the world, fintech companies are gaining prominence, aiming to disrupt and compete with traditional banks.

However, it is clear that banks remain a vital pillar of the global economy—they are not going away. While the financial system is in need of reform, ensuring the stability of banks and the resilience of markets remains crucial. Technology alone is not a complete solution to the challenge of financial inclusion.

What truly connects these elements is meaningful collaboration between local banks and fintechs. By working together, they can combine the trust, scale and regulatory experience of banks with the innovation, agility and customer-centric approach of fintechs to create a more inclusive and efficient financial ecosystem. Up to 95% of banks already use partnerships to enhance their digital products and reach, suggesting they are more than open to collaborate with fintechs who rise up to the challenge.

The EZO Approach

EZO does not seek to replace banks, but rather to work alongside them—leveraging our fintech and blockchain technology to enhance the efficiency, transparency and resilience of the financial system. Our goal is to complement the essential role that banks play in the global economy by introducing innovative solutions that address existing gaps and inefficiencies.

Our digital approach is designed to include individuals currently excluded from the banking system—benefiting everyone involved. Banks, whose payment rails and services EZO uses for a fee, gain access to a broader client base and technological expertise for innovation, while individuals experience the advantages of financial inclusion. On the other hand, we rely on banks for their regulatory expertise and international reach in order to promote financial accessibility globally.

Through collaboration, we aim to strengthen the overall financial infrastructure, combining the trust and scale of traditional banking with the speed, security and decentralization that blockchain offers. Built on high Canadian technological standards, our platform is simple yet efficient—enhancing the user experience while also empowering individuals through financial education made accessible.

Our approach is rooted in partnership—we work closely with local banks and other key actors including universities and their students in every country where we operate to deliver affordable, customer-centered financial products and services for all. By aligning with local institutions and understanding the unique needs and preferences of each society, we ensure that our solutions are not only accessible but also relevant and impactful on the ground, where students are the catalyst for change in their respective communities.

Because we believe that every individual, regardless of their background or location, has a fundamental right to financial inclusion and empowerment. Because we believe that everyone should have equal access to high-quality financial services and opportunities that enable them to thrive and take control of their economic future.

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Frequently Asked Questions

What Role Do Banks Play In the Financial System?

Commercial banks enable individuals and businesses to deposit and earn interests on their funds. On a broader scale, they sustain the payments system. Central banks regulate monetary policy and ensure stability of the system. 

What Should Change About the Current Financial System?

The financial system needs to be more inclusive and accessible across income levels and geographical areas.

What Is EZO’s Approach?

EZO’s approach is a collaborative one. We create partnerships with local banks and other actors to deliver high-quality financial services of Canadian standards around the world, merging reliability and innovation, as well as empowering individuals through financial education.